DAZN replaces Gotham Sports App in major U.S. regional sports pivot
DAZN is pivoting its US strategy by securing exclusive direct-to-consumer rights for regional sports networks including MSG and YES, effectively replacing the defunct Gotham Sports App. The move reflects a broader industry shift as major leagues seek alternative distribution models following the collapse of traditional regional sports network operators.
Key Takeaways
- DAZN secures exclusive DTC rights for New York area teams including the Yankees (MLB), Knicks (NBA), and Rangers (NHL).
- Gotham Sports App will shutter, with existing subscribers migrating to the DAZN platform mid-season.
- A separate five-year deal with the Minnesota Timberwolves includes 15 free games for local fans next season.
- The strategy utilizes DAZN's $100 million acquisition of ViewLift to provide B2B2C streaming infrastructure for displaced teams.
- DAZN aims for group-wide profitability by 2026, supported by narrowed losses of $936 million in 2024.
Why It Matters
DAZN is positioning itself as the primary technical successor to the collapsed Regional Sports Network (RSN) model, moving beyond its niche as a boxing destination to capture high-volume local fandom. By integrating ViewLift’s tech stack, DAZN offers leagues a turnkey distribution solution that mitigates the financial risks of building bespoke apps like Gotham Sports. This pivot signals a shift from expensive national rights bidding to a scalable platform-as-a-service play for fragmented local markets. Watch for whether DAZN wins the bidding for the NBA’s centralized local streaming hub, which is reportedly seeking $1 billion annually for a 2027 launch.
Additional Context
The collapse of the traditional RSN model reached a critical point in 2026 as Main Street Sports Group (MSSG)—formerly Diamond Sports Group—prepared to cease all operations. Per ESPN (April 2026), MSSG notified its remaining 20 NBA and NHL teams that it would wind down following the conclusion of the regular seasons after failing to reach a strategic transaction. This followed a turbulent period where the operator, which managed the FanDuel Sports Network, missed payments to several franchises, including the St. Louis Cardinals, after emerging from a two-year Chapter 11 bankruptcy process in early 2025. In response to this volatility, major leagues are shifting toward centralized digital platforms. NBA Commissioner Adam Silver confirmed that the league aims to launch an aggregated streaming hub for local broadcasts by the 2027-28 season, per Awful Announcing (July 2026). While YouTube is reportedly a leading candidate to host this hub, DAZN owner Len Blavatnik told Sports Business Journal in July 2026 that aggregating local rights is core to his company's strategy. The NBA's planned hub is expected to be geofenced and could eventually include over 20 teams, aiming to recoup revenue losses that have seen some teams lose up to 70% of their local media income. DAZN’s infrastructure-led approach was solidified by its DAZN ViewLift acquisition, announced in April 2026. According to Ministry of Sport (May 2026), the deal allows DAZN to offer a scalable B2B2C and SaaS model, leveraging ViewLift's existing relationships with 15 professional teams. This technology serves as a "safety net" for franchises wary of the instability seen with Diamond and MSSG, offering minimum guarantees reportedly ranging from $8 million to $15 million for teams transitioning to direct-to-consumer models. The company has already begun executing this strategy, as seen in the Indiana Pacers DAZN partnership which mirrors the New York expansion. For more on the legal fallout of these network failures, see the Main Street Sports lawsuit regarding licensing fees.
Read full article at sportspro.com
Enjoy our coverage?
Add StreamingMeme as a preferred source on Google to see more of our streaming news at the top of your Search results.
Add as preferred source