Telefónica Challenges Dazn for Exclusive Sports Broadcasting Rights
Telefónica aims to reclaim exclusive sports rights amid subscriber losses and stiff competition from Dazn.
Key Points
- • Telefónica lost key broadcasting rights, impacting its subscriber base.
- • Movistar plans to bid for exclusive LaLiga and Champions League rights in September.
- • The subscriber count has dropped from 4 million to 3.6 million.
- • Dazn has gained significant ground in acquiring major sports broadcasting rights.
Telefónica is intensifying its efforts to reclaim exclusive broadcasting rights for LaLiga and the UEFA Champions League in a bid to stabilize its subscriber base that has shrunk significantly. After suffering defeats in acquiring rights to coveted sports leagues like the ACB, NBA, and NFL, Telefónica is responding strategically to counter competition from Dazn, which has increasingly become a dominant player in the sports broadcasting arena.
The stakes are high as Movistar, Telefónica's entertainment brand, has witnessed a decline in its subscriber count, dropping from 4 million to 3.6 million in recent months. This alarming trend includes a notable influx of low-cost users migrating from the recent OTT service, raising concerns about the overall health of Movistar+. To address these challenges, the company is poised to bid for exclusive rights to LaLiga EA Sports and Champions League, which it currently shares with Dazn.
In preparation for the upcoming bidding process, set to commence in September, Movistar’s president, Javier de Paz, has been engaging with LaLiga president Javier Tebas to express their firm intentions. Tebas, however, has indicated that a transparent public auction will be implemented to maximize the sale price, a move prompted by complaints from significant clubs like Real Madrid regarding previous rights agreements.
In addition to pursuing higher-tier leagues, Telefónica has adopted a dual approach by introducing promotional offers aimed at retaining subscribers. They have also acquired broadcasting rights for Liga Hypermotion, the second division of Spanish football, although this is perceived as less desirable by the football audience compared to premier leagues.
As competition intensifies, illustrated by Dazn's acquisition of rights for various major leagues including the Premier League and ACB, Telefónica faces a critical juncture. The company must not only secure better broadcasting options but also effectively communicate the value of its offerings to prevent further subscriber losses. The upcoming months are crucial for Telefónica as it seeks to recapture its audience amid changing dynamics in sports broadcasting.