Telecom Italia renegotiates football streaming deal with DAZN – sources

MILAN, Aug. 3 (Reuters) – Telecom Italia (TIM) (TLIT.MI) has agreed to a restructuring of its partnership with DAZN, giving up the exclusive right to distribute the video streaming app in Italy in exchange for a lower compensation, two sources said on Wednesday.

Italy’s largest telephone group last year entered into a distribution partnership with DAZN, which had secured domestic broadcasting rights to Italian Serie A football in a three-year deal worth 2.5 billion euros.

The terms of the new contract between TIM and DAZN will be discussed at a Telecom Italia board meeting Wednesday, along with second-quarter results, the sources said, warning that any deal must gain the board’s backing.

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The renegotiation of the agreement with TIM would pave the way for DAZN to forge partnerships with other pay-TV operators and telecom players such as Sky Italia.

The latter is in final talks with DAZN to host video app content on its platform, separate sources said.

Spokespersons for Telecom Italia, DAZN and Sky Italia declined to comment.

Last year, TIM agreed to pay an annual fee of more than 340 million euros ($346 million) in exchange for the exclusive right to include the DAZN app on its video content platform Timvision, in a deal that included three Series Covers A seasons, at the time sources said.

But the expensive deal, which is also under Italian competition control, did not give TIM’s revenue the expected boost.

Instead, it was a factor in a series of profit warnings, forcing TIM to book EUR 548 million in one-off provisions.

This prompted TIM, now under a new CEO, to renegotiate the contract on a less expensive basis. According to one of the sources, TIM could save about 100 million euros per year under the new agreement.

($1 = 0.9819 euros)

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Reporting by Elvira Pollina Editing by Keith Weir

Our Standards: The Thomson Reuters Trust Principles.

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