DAZN to withhold rights payments to survive coronavirus crisis

DAZN sports broadcaster,Sports media rights,Sports Business News,Sports Business,Coronavirus

International digital sports broadcaster DAZN will be writing to global rights holders to inform that the payment for any undelivered content will not be made.

DAZN thus will become the first media company in the USA that will be withholding rights fees as inflow of content has come to a standstill.

The pandemic is causing major disruption to all areas of the sports industry, especially sports broadcasters who do not have any live content to air, states a SportsPro media report.

Also Read: DAZN announces global expansion plan; to cover over 200 territories

The global launch of DAZN’s OTT platform, announced earlier this month, has also been pushed back, with the previously slated Canelo Alvarez fight on 2nd May – the platform’s unconfirmed launch event – now unlikely to happen and other rights agreements not in place. It is understood, however, that back-end development work on the new service will continue.

DAZN, however, will make the payments for contracts and services that have already been delivered. The moratorium will only apply to rights holders with matches that have been suspended, postponed or cancelled.

DAZN will reportedly resume payments once it has clarity on the resumption of live sports.

DAZN has been growing at a rapid pace since its launch in Germany back in 2016. Last year it passed the eight million global subscriber mark and was named as the world’s top revenue-generating sports app by a Sensor Tower study.

Also Read: Sports Business: Li-Ning eyes higher profit as China emerges from COVID-19