The investments made in Spain by streaming sports platform DAZN are not paying off as expected.
Increased competition from traditional TV operators – with their own OTT platforms such as Mediaset’s Mitele Plus – as well as the lack of key sports TV rights such as La Liga, and declining audience ratings for MotoGP, are stopping the platform from attaining a firm foothold in the market.
According to ADSL Zone, DAZN is losing over €5 million a month with total revenues amounting to just €600,000 a month from around 120,000 customers.
To reverse the situation, the platform recently announced a fee increase of €5 a month from €4.99 to €9.99 a month frm August 5th for news subscribers. Existing subscribers will not pay that price rise until March 2020.
Additionally the company is planning to introduce an annual fee option of €99.99.
DAZN claims that since its launch in February, some 12.8 million hours of content has been watched in Spain. 76 per cent of which was live. Over half (56 per cent) of subscribers watch DAZN through a Smart TV, 27 per cent via mobile phone and 17 per cent via PC. Most of subscribers are in Madrid, Barcelona, Valencia, Sevilla, Alicante and Malaga.