Leading sports media businesses, DAZN and Sky, have warned the industry that rampant online piracy could trigger a financial crisis unless it is effectively addressed. Fans of epl odds will know that it isn't difficult to find illegitimate live streams for the Premier League and other top competitions, and this problem is now being highlighted by executives.
Speaking at The Financial Times Business of Football Summit, Tom Burrows, DAZN’s head of global rights, highlighted that piracy was a “huge problem” for the London-based sports streamer. He warned that this issue extends beyond just their company and affects everyone involved in professional sports.
“Media-rights deals have been done on the basis of exclusivity but I think there’s almost an argument to say you can’t get exclusive rights anymore because piracy is so bad," said Burrows.
He added that if no solution is found to bridge the financial gap caused by piracy, the sports themselves will suffer.
DAZN has emerged as the world’s biggest streamer of European football and owns domestic rights in four out of Europe's 'Big Five' leagues: Germany’s Bundesliga, La Liga in Spain, Ligue 1 in France and Italy’s Serie A. However, they are currently disputing with Ligue 1 over their five-year deal value due to concerns about how the French league has responded to the piracy crisis.
Sky Group's chief operating officer Nick Herm also expressed concern over tackling piracy which he described as a “never-ending battle”.
In terms of quantifying losses due to piracy for businesses like Sky or DAZN, it remains challenging. However, Herm suggested missing revenue could amount to "hundreds of millions of dollars".
The main issue in the UK according to Herm isn't illegal streams but ‘jailbroken Fire Sticks’. These are smart TV devices modified for free access to premium channels. "The Amazon FireStick accounts for about half of the piracy in the UK," Herm stated.
Claire Enders, co-founder of Enders Analysis, a leading British research firm, gave an even more alarming assessment of the piracy epidemic. She pointed out that due to COVID and the cost of living crisis in almost every market, there has been a significant increase in piracy.
Enders believes that one reason why the Premier League’s media rights continue to grow is their stringent approach towards combating piracy along with their broadcast partners, police and Britain’s leading internet service providers.
She criticized French football's decision to part ways with its long-term broadcast partner Canal+ in 2020 and described Italy’s efforts against piracy as “slack”.
"Everyone would be much better off if all the rights-holders were much more vigilant in trying to stop what is basically industrial levels of piracy,” she concluded.
Online sports streaming platforms are facing a serious threat from rampant online piracy. This issue not only affects these businesses financially but also undermines the value proposition they offer to sports fans worldwide.
Therefore, it's crucial for all stakeholders involved - from broadcasters and leagues to tech companies - to join forces and find effective solutions against this growing menace.
