DAZN will build ancillary revenues with an all-in-one service

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Peter Parmenter of DAZN says the media company is planning to integrate the “all in one service” offerings. Sports subscriptions remain the “foundation” of DAZN for the foreseeable future. The service also plans to make further acquisitions of sports rights for the women

Sports streaming subscription specialist DAZN will increase its efforts to create ancillary revenue streams as part of plans to eventually create an all-in-one service for its subscribers.

Speaking at the SportsPro OTT Summit 2021, Peter Parmenter, senior vice president of business development at DAZN, said the service will target a number of areas to complement its subscription model.

“We officially exited and said we will create ancillary revenue streams,” Parmenter said. “Whether it’s advertising, betting, e-commerce, but in a really fun and engaging way, where you can integrate all of this into one service, I think it’s an opportunity and I think our fans tell us that’s what they want to see”.

DAZN actually signaled its intention to expand its sources of income when it announced the appointment of Entain’s gambling giant Shay Segev to sit alongside James Rushton as co-CEO.

Although DAZN cited Segev’s background in technology and digital transformation as the main reasons for the appointment, his role as CEO of Entain is particularly significant given the growing prevalence of sports betting in the United States.

According to Ark Invest, the sports betting market in the United States will reach $ 37 billion by 2025, a significant jump from its current value of $ 9.5 billion. A study by Zion Market Research also showed that the global sports betting industry raised approximately $ 131.1 billion in revenue in 2020 and is expected to earn approximately $ 179.3 billion in 2028.

Despite the extensive plans, Parmenter added that DAZN’s sports subscription content will remain the main focus for now, but will serve as one of several pillars for offering the service later on.

“The subscription part of our business will be the foundation of our business for a long, long time to come,” Parmenter said. “It is all these services that we are building around live broadcasting and the rights we have on the platform are the strategy that goes on.”

During his session at this year’s SportsPro OTT Summit, Parmenter also discussed DAZN’s four-year global rights agreement for the UEFA Women’s Champions League, which includes a distribution agreement with YouTube for the elite women’s football competition. in Europe. It’s a contract that could mark further moves in the women’s sports rights space

“We have the opportunity to grow the sport here and the ripple effect that comes with it… more leads to more. More fans, more engagement, more rights, better views, more subscribers. All of that kind of thing comes out of there, “Parmenter said.” And, absolutely, it’s a huge opportunity and it’s good business to be in women’s sport. “

She added: “We are open to business in the women’s sports arena, for sure.

“Our ears are open. We are not a football broadcaster. We are a multi-sport broadcaster in multiple markets. If there are opportunities to bring engaging sports to all of our fans around the world, let’s have this conversation. “

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