Streaming service Dazn looks to be the big loser from BT Group PLC's (LSE:BT.A) decision to merge its sports arm with Europsorts, according to Conrad Wiacek, head of sport analysis at research house GlobalData.
This followed the confirmation from the FTSE 100 group early this morning that it was abandoning plans to sell its sports broadcasting arm.
“Without BT’s subscriber numbers, the ‘Netflix of Sport’ [Dazn] now faces an uncertain future given the platform has been largely funded by billionaire Len Blavatnik up to this point.
“Without a presence in one of the world’s largest sports rights markets, the viability of the entire platform may now be in question.”
Sky is also under threat from a potentially rejuvenated competitor, according to Wiacek.
“Discovery entering into a joint venture with BT Sport ahead of an eventual purchase will not only change the shape of sports broadcasting, but it is also a legitimate threat to Sky’s dominant market share position in UK and European sports broadcasting.
“With Comcast (NASDAQ:CMCSA) now owning Sky and Discovery taking on BT Sport, the UK may become the first battleground in the US giants’ plans to become the dominant European sports broadcaster.”
Discovery owns the global media rights to the Olympic Games, as well as the Eurosport network that also covers cycling's Tour de France and other grand tours, tennis grand slams and skiing world cups, while BT Sport has the Champions League rights in the UK until 2024, along with those to top-level English and European rugby.
In a statement alongside its third-quarter results, BT said that after a “detailed process to identify the best way to generate investment and strengthen our Sports business,” it had decided to enter exclusive discussions with Discovery.
“The new business would be a 50/50 joint venture, bringing together BT Sport with Eurosport UK,” it added.
The aim is for the new JV to be operational later this year, subject to completion of the deal and approval by the relevant competition authorities, said BT.