The streaming sports video service DAZN will introduce advertising and sponsorships in the coming months.
The service, which launched in the U.S. in September, will not seek to replicate the ad model for existing televised sporting events, but will focus on sponsorships, product placements and brand integration, per The Wall Street Journal.
Ahead of its U.S. launch, DAZN brought on former ESPN president John Skipper to steer the service. Skipper has helped the company secure new rights deals and develop its ad product.
DAZN’s lineup in the U.S. is heavy on combat sports, such as boxing. The company inked a deal with boxer Canelo Alvarez and the promoter Golden Boy Promotions worth a minimum of $365 million.
However, DAZN is beginning to expand beyond combat sports. Earlier this month, the company announced a deal with Major League Baseball for a new show that will offer cut-ins to all the games in progress. That three-year deal is estimated to be worth around $300 million.
Existing live sports remain the most popular part of the traditional TV bundle, but they also include lots of advertising opportunities, as breaks in the action turn into commercial breaks. DAZN will need to develop new sponsorship opportunities that make sense in the context of a streaming service with few if any breaks.
Currently, DAZN costs $9.99 per month and is available in seven countries, with more on the way. It was not immediately clear whether an ad-supported tier of service would be offered at a lower price point or would become part of the standard tier.