Sports streaming specialist DAZN has acquired exclusive global broadcasting rights for next year’s revamped FIFA Club World Cup, FIFA has announced, in a deal reported to be worth $1 billion.
Under the terms of the deal, DAZN will make all 63 matches from the 2025 tournament available for free on its platform worldwide, meaning that advertising will presumably be the primary revenue driver from DAZN. The streamer will have the option to sublicense matches to local free-to-air networks in individual markets.
The two describe the deal as part of a wider partnership between FIFA and DAZN. FIFA has also announced that DAZN will start integrating FIFA+, FIFA’s own direct-to-consumer streaming service, into its own platform. This will include on-demand content and live matches currently available through FIFA+.
Expanding the global brand
The deal is an interesting move from DAZN as it continues to grow its slice of the sports market through major rights acquisitions. The Club World Cup, despite its grandiose name, is generally seen in Europe as less prestigious than many other major tournaments – though enthusiasm is higher in South America. Official viewing figures for previous tournaments are hard to come by, but the tournament has a lower profile than the likes of the Champion’s League, World Cup, European Championships, and Premier League.
However the format has been reworked and expanded for 2025, greatly increasing the number of teams involved and the number of matches played. FIFA’s ambition is for the Club World Cup to grow in prestige and hold more importance on the footballing calendar – it is now played once every four years rather than annually (though the new Intercontinental Cup replicates the old format and will continue running on an annual basis).
DAZN’s heavy investment is perhaps in part a bet on this new format driving greater viewership – which will obviously be key if the platform wants to bring major advertisers on board. The global nature of the rights may have been a key consideration as well, giving DAZN exposure in markets around the world – teams from every populated continent will be taking part, so there will be invested viewers across the world. Since the games will be free, it won’t directly bring new paid subscribers on board, but it could drive growth through the global exposure the tournament could provide.
Nonetheless, it’s an expensive deal. Netflix paid $5 billion for global rights to WWE programming, but that covers ten years’ worth of rights for a product which puts out weekly shows, rather than a one-off tournament. The ability to sublicense rights may be key for DAZN in terms of making back money on its investment.
The deal also hints at a rethink on FIFA’s part about FIFA+. FIFA spoke of high ambitions for the platform when it first launched, and looked set to bring in more live content where available. The deal to distribute content via DAZN, however, suggests the football governing body is now placing less emphasis on building an audience on its own platform.
This context could also help justify DAZN’s price. A close relationship with FIFA could be help secure future rights for valuable live and on-demand content, which is particularly valuable if FIFA is placing less emphasis on its own streaming product.
