May 5, 2023, 12:47 pm | Read time: 3 minutes
Although DAZN significantly raised its prices just last year, another increase now seems likely. The sports streaming service’s subscription could soon become even more expensive. TECHBOOK has the details.
In early 2022, the news that DAZN was raising its prices caused quite a stir. Due to expensive licenses for the Bundesliga, Champions League, and others, higher operating costs, and other factors, the streaming service doubled its subscription price from the previous 14.99 euros to 29.99 euros per month. This makes it one of the most expensive streaming services in Germany. However, the high subscription costs still don’t seem to be enough to bring the company into the black. Another price increase is therefore not out of the question.
DAZN must become economically profitable
First of all, another price increase at DAZN has not yet been confirmed. However, the decision-makers are keeping all options open in this regard. As reported by the portal “digitalfernsehen,” both DACH CEO Alice Mascia and CFO Darren Waterman have confirmed that they aim to reach “break-even” by 2023. More specifically, DAZN must become economically profitable in Germany this year. In an interview with the sports magazine “Kicker,” Waterman said, “Our goal is to make the company profitable soon. Subscriptions and advertising are currently the main sources of revenue.” At the same time, DAZN wants to offer more services to customers, which should benefit overall economic sustainability.
There are several indications that DAZN might reconsider its pricing structure. According to Waterman, they are “still in a learning process,” not only regarding pricing but also in terms of services and offerings. At the beginning of the year, DAZN adjusted its subscription structure in the DACH region. Since then, instead of just one package, there are three subscriptions: “DAZN World,” “DAZN Standard,” and “DAZN Unlimited.” This means more choices for customers, which also affects pricing—the cheapest package with limited access is available for under 10 euros. However, if they want to continue using the full offering, they now have to pay even more. The complete Unlimited package costs 39.99 euros.
In addition to the new package structure, DAZN has also introduced a new pay-per-view option and ad-supported channels. All measures that should bring in a lot of money in the long run. Whether that will be enough remains to be seen.
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Last price increase at DAZN angered many
If DAZN is indeed considering another price increase, the start of the next Bundesliga season in mid-August would be a good time. However, nothing has been confirmed yet. The streaming service should not overlook the waves caused by the last increase, which led to considerable discontent among DAZN customers. DAZN CEO Alice Mascia, who has been in office since May 2022, said at the time that prices should have been raised much earlier. This is primarily due to the increased costs for licenses, as the streaming service shows a lot of soccer from various leagues.