DAZN need an estimated extra 1 million subscribers to break-even
In France the football league (LFP) have taken legal action against broadcaster DAZN after they paid only half of a 73 million dollar instalment for Ligue 1 TV rights. The reason for the reduced payment was to encourage the French league to give DAZN better access to the league, its clubs and players. Not to mention their concerns about piracy which Dazn feel is affecting their income.
The deal is estimated to be a 420 million dollars a season based on DAZN believing they could acquire half a million subscribers. The reality is rather different with DAZN attracting only half a million subscribers. This is partly due to the pricing of the subscriptions and the perceived quality of the French league.
This weeks outstanding European Champions League match between Paris Saint Germain (PSG) and Liverpool FC may change beliefs about the perceived quality of the French League. The French side knocked out Liverpool in the first knock-out round of the Champions League. The quality of football was breath-taking with PSG out-playing Liverpool for much of the two matches.
With the 4-year deal only being in its first year, the need to resort to litigation instead of dialogue is concerning