Live streaming company DAZN refuse to pay broadcasting rights fees & stop customers cancelling contracts
DAZN: Live streaming sport company
DAZN are an online sports live streaming broadcaster, who have been in business since 2016.
The company’s chairman is John Skipper, who was formerly the head of ESPN.
DAZN operates in several countries, including the United States and Canada.
In North America, customers of DAZN get to watch all the Premier League, Champions League and Europa League action.
The company also broadcasts in Austria, Germany, Switzerland and Japan.
What are DAZN best known for?
While DAZN offers a huge amount of football, the company is best known for it’s boxing content.
In recent years, DAZN signed exclusive contracts with some of boxing’s biggest stars including Canelo Alvarez.
DAZN refuse to pay broadcasting rights fees
On Tuesday, news broke the news that DAZN are set to renege on their broadcasting deals.
The live streaming company are refusing to pay right fees for sporting events which have now been canceled. Sports Business Daily reported:
DAZN has started telling sports leagues that it will not pay rights fees for any games that have been suspended or content that has not been delivered because of the coronavirus pandemic, according to sources.
DAZN is believed to be the first media company with U.S. ties to withhold rights fees; most media rights contracts mandate that networks continue to make payments even when games are not played.
DAZN furlough employees & ‘the biggest disaster to hit the sports world in 75 years’
Not only have DAZN refused to pay up on existing contracts, the company have also furloughed most of their employees.
In an email send to DAZN staff, employees were told:
I know for many of you that this message will create anxiety and uncertainty. I am deeply sorry for that, as I know all of us have our own personal challenges and stresses at the moment.
This is the biggest disaster to hit the sports world in 75 years and the biggest challenge our business has ever faced.
Sports streaming service Dazn, which has Champs League and Prem League rights in some countries, defers rights payments while sorts are postponed. It has also furloughed some of its 2,600 mostly UK-based staff “to enable the business to survive this difficult time”.
— Mark Sweney (@marksweney) April 1, 2020
DAZN subscribers cannot cancel contracts
While DAZN are looking to back out of their rights deals, the company is receiving a lot of criticism on social media for the way in which they are dealing with their customers.
As DAZN have no live sport to broadcast, many subscribers are seeking to cancel their contracts. The problem is that DAZN won’t let them do that. As reported by SB Nation:
While DAZN isn’t offering refunds to customers who have purchased annual subscriptions, it is allowing members to pause their membership for up to four months.
Social media backlash against DAZN
Hey @DAZN_CA , if you guys aren't paying the sport leagues, are you going to let me pause my yearly subscription? Ain't right that you don't have to pay, but we already did. Let us pause so we can resume once leagues start back up. #DAZN https://t.co/TnDfKCUu1U
— Alex 🐼🎮 (@PandasAlley) April 1, 2020
DAZN just took their monthly subscription without any form of sport being played pic.twitter.com/nGcSUYBGKq
— Z⚡️ (@__zelig) March 25, 2020
DAZN withholding payments to rightsholders….. but not withholding charges to customers accounts…. textbook case of how to lose customers…. if they survive this downturn I'll be amazed….
— Robert Joyner (@robnashville) March 31, 2020
Also see: How to cancel Sky Sports subscription & still watch 11 channels for free.
How to cancel BT Sport subscription during coronavirus quarantine.
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