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Originally Posted by Raider999
If DAZN thought they could make a profit out of streaming Premier League football then surely they would have put in a bid for one of the packages available in the recent round.
With no realistic bids other than the Sky/BT (and minor from Prime) the Premier League extended the current encumbents.
What has changed - possibly DAZN see BT wanting out and hope to pick up the rights for a reduced amount.
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I think the problem with their standalone offering is uncertainty in the future. Would they be in a position to make a profit over the lifespan of the rights and launch a bid in year 2 for years 4-6? Who knows - however I've frequently pointed to this as an issue for a genuine 'upstart'.
BT have their share of Premiership rights until the end of the 2024/5 season, and Champions League rights until 2023/4. So DAZN would be on a more solid footing going into both auctions with some kind of subscriber base behind them, an established brand name and (presumably) a presence on all major platforms.
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Either way, they will retain the linear BT channels as I would assume for the contract specifies how the matches are delivered. Even if it doesn't, it would be extremely brave(rash) to bin the customer base by going to streaming only model.
It doesn't matter what OB thinks, linear sports channels are here to stay for the foreseeable future.
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I can't foresee any rush to make major changes - however it's likely some are inevitable over time. This is essentially giving themselves a base from which to push into the next major rights auctions and cannibalising their own revenue from Virgin, Sky or BT at this point would be pointless.
BT Sport is presumably a loss leader for their broadband service - hence their decision to exit the market and focus on rolling out FTTP. The Virgin wholesale revenue has always been considered useful income from a subscriber base unlikely to pay top dollar for the standalone service.
Will a condition of selling BT Sport to DAZN include a long term agreement to wholesale (or at least partially subsidise) the service on that platform? Or will BT just exit the TV market altogether - essentially becoming a reseller for NOW TV and DAZN.
BT already have the standalone app for £25 on a range of platforms for those who can't work a TV remote so it'd be interesting to see how (if at all) pricing for that shifts over time.