In a significant development, sports streaming service DAZN has settled its financial obligations with the French Professional Football League (LFP). This move comes after the intervention of the President of the Paris Economic Activities Court.
DAZN's payment to LFP amounts to €35 million, which accounts for half of the total money owed to clubs under their existing contract. This resolution has led LFP to withdraw from summary proceedings it had previously initiated against DAZN.
The dispute between LFP and its broadcast partner arose due to concerns over piracy in the market and insufficient promotion for licensed options by some league members. These issues have been a source of contention between both parties, leading to an unsettled relationship.
Piracy concerns and subscriber shortfall
DAZN expressed dissatisfaction over rampant piracy in France's sports streaming market. It believed that this issue was significantly impacting its subscriber base and revenue growth. Furthermore, it criticized some league members for not adequately promoting licensed streaming options among fans.
It is estimated that DAZN currently has around 500,000 subscribers in France. This figure falls considerably short of their initial target of 1.5 million subscribers at the start of the season.
Ongoing discussions
Despite settling half of its debts, discussions are still ongoing between LFP and DAZN regarding outstanding issues related to their contract terms and conditions. Both parties are actively seeking an agreement that will address these concerns effectively while ensuring a mutually beneficial partnership moving forward.
The settlement marks a crucial step towards resolving disputes between DAZN and LFP while also highlighting broader challenges faced by sports broadcasters amidst increasing piracy threats. As negotiations continue on outstanding matters, all eyes will be on how both entities navigate these complex issues in pursuit of sustainable growth within France's competitive football broadcasting landscape.
