DAZN, the popular sports streaming service, is currently embroiled in legal challenges as the Federation of German Consumer Organisations (Verbraucherzentrale Bundesverband) pursues a class action lawsuit against the company. The lawsuit claims unlawful price increases during existing customer contracts, sparking significant concern among subscribers.
According to the VZBV, "The streaming provider DAZN increased its prices in 2021 and 2022 in continuing contracts without the consent of customers. The price increases for existing customers at the time to be illegal." The consumer group asserts these price hikes were conveyed through unfair terms. The legal action highlights DAZN's price adjustments from €11.99 to €14.99 per month and from €119.99 to €149.99 annually, which took effect in August 2021. Subsequently, these increases jumped again from €14.99 to €29.99 monthly and from €149.99 to €274.99 annually by August 2022.
The rationale behind the lawsuit stems from the consumer organization’s perspective on consent, urging subscribers to unite against these alleged unjustified price enhancements. The lawsuit is particularly relevant as DAZN retains broadcasting rights for several major sports leagues, including Germany’s Bundesliga and Italy's Serie A, making it one of the most significant players in the streaming sector.
Just last December, Bundesliga rights holders announced a lucrative €4.48 billion deal over four years, securing DAZN’s place along with Sky Deutschland as leading broadcasters. Despite this success, DAZN's attempt to adopt exclusive rights to certain Bundesliga matches proved contentious. Following a substantial €1.6 billion bid to secure Friday night and Saturday afternoon matches, the German Football League (DFL) demanded rigorous financial guarantees, which DAZN allegedly could not satisfy. Consequently, the DFL awarded the rights to Sky. DAZN contested the ruling, and the court sided with the streaming service, mandatorily requiring the rights to be re-tendered.
While DAZN grapples with these legal hurdles, it simultaneously expands its media reach through innovative partnerships. The streaming service recently announced a multi-year global broadcast rights agreement for the UIM E1 World Championship, the world’s first all-electric raceboat series. This groundbreaking deal allows DAZN to showcase all racing sessions, including live coverage of the final race each weekend across several key international markets, including Canada, Germany, France, Italy, Spain, and Japan.
Rodi Basso, CEO and Co-founder of E1, expressed enthusiasm for the partnership, saying, "At E1, we’re driven by innovation and pushing the boundaries of possibility. We have a broadcaster who shares our vision to engage sports fans of the future through technological advancement and unique sporting entertainment." The collaboration is anticipated to expand E1’s visibility, with the Championship reaching diverse global audiences.
This season, DAZN is gearing up to deliver unparalleled entertainment by combining top-tier sporting action with innovative storytelling. The arrangement includes exclusive content featuring notable celebrity team owners like Tom Brady, Rafael Nadal, and Didier Drogba, making for compelling viewing.
Shay Segev, CEO of DAZN Group, elaborates on the significance of this partnership, stating, "DAZN and E1 are both dedicated to building an experience which engages fans across the world with new and innovative content." They aim to redefine spectator experiences not only through traditional broadcasts but also through innovative methods of storytelling and user engagement.
Combining the thrill of motorsports with the capacity of streaming technology, DAZN’s move toward electric racing promises to bring exciting and unique sporting entertainment to fans around the globe. With the season culminating in a finale set to take place against the vibrant backdrop of Miami, the expectations from the E1 Championship are sky-high.
While the legal battles loom large, spanning allegations of unfair practices and involved pricing disputes, DAZN’s commitment to deliver engaging sports experiences through new partnerships and innovative content strategies positions it strongly within the competitive streaming market. Whether the legal challenges will significantly impact its operational capabilities remains to be seen, but it is evident DAZN remains focused on embracing opportunities to engage with sports fans like never before.