DAZN has had a new Germany boss since the beginning of the year: Alice Mascia drew attention on Monday when she did not rule out further price increases, but in the same breath she also mentioned plans for a free version. What should one make of this ambivalent communication strategy? DIGITAL TELEVISION tries to shed some light into the darkness.
1. The new boss
Alice Mascia followed Thomas de Buhr in the spring (DIGITAL TELEVISION reported). She previously worked at Sky, among others, and is generally regarded as an expert on restructuring. It is therefore hardly surprising that after the price doubling that was launched under de Buhr and the associated bad press, a counter-offensive is now following. The interview with the “Süddeutsche” on Monday also falls into this category, in which Mascia, as mentioned at the beginning, describes the general trend towards so-called AVOD or FASTmodels, i.e. free streaming offers financed by advertising, as a very realistic option for the not too distant future.
2. DAZN must become profitable
The fact that Mascia has not ruled out further price increases is probably due to the fact that this year’s doubling of subscription costs came too late in their eyes. The milkmaid calculation that it is enough if only half of the previous customers go with the pretty bold 100 percent to get out of zero is lagging at the point where DAZN actually needs more customers to finally be able to be in the black. Customer numbers are not communicated by the sports streaming service anyway, but it was unusually frank for the new boss to state that they were able to keep well over half of the required customers despite the price doubling. Everything in butter so? Probably not! Because “we are here to invest,” says Mascia. This requires further growth, in revenue, in customers, on all fronts. From this point of view, the opening of a DAZN fan shop in cooperation with EMP is better understood. Under the new boss, DAZN tries to take as much as possible.
3. How should a free DAZN variant generate more revenue?
The plans mentioned by Mascia for a free advertising-financed DAZN variant initially sound paradoxical in view of the investment plans. But it is only if you get the idea that the FAST/AVOD model could be a one-stop shop. However, what is much more likely is that this variant is intended to be the bait for a DAZN subscription. The free TV era of Sky Sport News could be mentioned here as a negative example. This calculation did not work out, the project recently ended again in summer 2021.
In order for the marketing bill to work better at DAZN, you might have to throw one or two juicy bones more to the audience. This is how you might get new customers. A target group for which DAZN still has great growth potential is the elderly man who is quite fond of (live) sports. In order to open up this financially strong field, one could think about free TV cooperations, for example with Sport1 or the like. However, this seems extremely unlikely at the moment.
The start of a free advertising-financed offer from DAZN would fit in with the times, both in terms of your own company and the general trend – keyword Freevee and consorts. Only, one should not expect too much attractive content from such a model.
Source: DIGITAL FERNSEHEN by www.digitalfernsehen.de.
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