April 24, 2024, 11:54 am | Read time: 4 minutes
For those seeking thrilling entertainment today, the extensive offerings of various streaming services are available. However, the market has become very fragmented, and fees are rising. Consumer advocates have been critical of this for some time and are now taking action. Recently, a lawsuit was filed against the sports streaming service DAZN over price increases from 2022.
Lawsuit Against DAZN – Price Increases from 2021 and 2022 in Focus
The Federation of German Consumer Organizations (vzbv) announced this step in a corresponding press release. According to them, consumer advocates have filed a lawsuit against DAZN over price increases from 2021 and 2022. The vzbv claims these were legally inadmissible, especially since they affected existing customers and were implemented without their consent.
As Ramona Pop of the vzbv states, the class action aims to target contract clauses on price increases that are “unreasonably disadvantageous and non-transparent.” They are therefore declared invalid. As early as the beginning of 2023, the consumer organization began searching for affected customers for the lawsuit against DAZN over price increases – TECHBOOK reported on this.
Particularly significant are the increases in the monthly fee from 14.99 to 29.99 euros and the annual lump sum from 149.99 to 274.99 euros as of August 1, 2022. Any subsequent increases are not covered by the lawsuit.
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DAZN Customers Could Get Money Back
To stay updated on the status of the lawsuit and the opening of a lawsuit register, the vzbv has set up a news alert for which affected and interested parties can register. Once the register is open, more people can join the class action.
This is certainly advisable. Ultimately, it depends on the court’s decision. However, if the consumer organization succeeds in court, customers can expect a refund of the overpaid subscription fees.
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DAZN Continues to Cause Problems for Customers
The lawsuit against DAZN concerns price increases from 2021 and 2022. However, the streaming service reportedly did not cover itself in glory in 2023 either. Last year alone, there were seven times more complaints than in 2022 – a total of 500.
In addition to further increased subscription fees, customers criticize other changes to the contractual relationship, about which they were not sufficiently informed or to which they did not agree. DAZN rejected subsequent objections.
The cancellation process also proved unnecessarily complicated – despite the new regulation for a cancellation button. Consumers report that they suddenly had to chat with customer service. This led to waiting times, and they were repeatedly offered new deals, which they first had to decline.
TECHBOOK asked DAZN for a statement and received the following response: “We have not been served with a lawsuit. If there is one, we do not comment on ongoing proceedings.”
Trouble for DAZN Does Not Abate
A loss in court would likely be a significant financial blow for DAZN. Sports rights are known to be expensive, which is why DAZN claims it was forced to raise prices. TV money is an important source of income for clubs; on average, each Bundesliga club earns 1.1 billion euros per season from the current rights package. Record sums were set for the 2022/23 season according to reports.
The next rights package is currently being negotiated (for the 2025/26 to 2028/29 seasons). DAZN has offered 400 million euros annually for it. Specifically, it concerns Package B, which includes a total of 196 live games, including Friday evening games, Saturday matches at 3:30 p.m., and relegation games. Previously, the corresponding rights were held by Sky. Since there were reportedly delayed payments from DAZN in the past, the DFL has now asked the provider to present a guarantee. Due to a short time frame, DAZN submitted the guarantee too late. The result: Despite a lower bid, Sky was awarded the contract. DAZN is now contesting this; the award process is currently on hold.
It remains to be seen whether DAZN will secure the new rights at all. If so, the next question arises: Can DAZN afford the package in its entirety? Or will subscribers face further price increases in the coming years for this reason, among others? At least for 2024, the provider has already clarified that it intends to maintain existing prices. Little is known about the pricing policy thereafter, so considerations of price increases are purely speculative.