Should DAZN prioritize expanding its live sports coverage or investing in original content production to drive subscriber growth?

Introduction

The trade-off question at hand is whether DAZN should prioritize expanding its live sports coverage or invest in original content production to drive subscriber growth. This scenario involves balancing the core offering of live sports with the potential of original content to attract and retain subscribers. I'll analyze this trade-off by examining the product ecosystem, potential impacts, key metrics, and experimental approaches to inform a strategic recommendation.

Step 1

Clarifying Questions (3 minutes)

• Context: I'm thinking about DAZN's current market position. Could you provide more information on our market share and primary competitors in key regions?

Why it matters: Helps understand competitive pressures and growth opportunities Expected answer: Varied market share across regions, facing competition from traditional broadcasters and streaming services Impact on approach: Would influence whether to focus on differentiation or market penetration strategies

• Business Context: Based on our business model, I assume subscription revenue is our primary income source. How significant are other revenue streams, such as advertising or pay-per-view events?

Why it matters: Affects the potential impact of content decisions on overall revenue Expected answer: Subscription is primary, with growing ad revenue and occasional PPV events Impact on approach: Would determine if we need to consider multi-sided revenue impacts in our decision

• User Impact: Considering our user base, I'm curious about the engagement patterns. What's the split between users who primarily watch live sports versus those who consume other types of content?

Why it matters: Helps identify potential audience segments for original content Expected answer: Majority focused on live sports, with a growing segment interested in sports-adjacent content Impact on approach: Would influence the type and volume of original content to consider producing

• Technical: Regarding our platform capabilities, how scalable is our current infrastructure for handling increased live sports coverage versus on-demand original content?

Why it matters: Assesses technical feasibility and potential implementation challenges Expected answer: Robust live streaming capabilities, with room for growth in on-demand content delivery Impact on approach: Would affect the timeline and resource allocation for either option

• Resource: Thinking about our team structure, how are our content acquisition and production teams currently set up? Do we have in-house production capabilities?

Why it matters: Determines our readiness to execute on either strategy Expected answer: Strong rights acquisition team, limited in-house production capabilities Impact on approach: Would influence whether to build internal capabilities or partner for original content production