Editor Note: ‘Early Entrants’ is a series of sports business ‘rumblings’ before the news breaks.
DAZN has reported that the company has surpassed 8 million global subscribers, impressive considering how little it has spent on advertising and marketing relative to what Disney+ paid out to reach the 10 million subscriber milestone. One media insider explained, “that simply reflects how much more efficient sports programming is at acquiring subscribers in the OTT environment than general entertainment is.”
At 8 million subscribers, DAZN is nearly halfway home to the “mythical 20 million number that would allow the company to IPO.” The logic is that if Netflix has 158 million subscribers and a $137 billion market cap, at 20 million subscribers analysts would rough out the company’s valuation at +/-$8 billion; the number that institutional money would come in at. One could certainly argue that DAZN would be undervalued at $400/subscriber, Netflix’s valuation indicates that the company’s subs are worth more twice as much.
If an IPO isn’t in the cards, DAZN’s international footprint would presumably also make the company attractive from an acquisition standpoint to one of the big U.S. based linear players (think: Turner, CBS, ESPN).
Editor Note II: Join our community (below) to receive our free daily email newsletter.