Sunday, August 13, 2006

Future of Fantasy Sports

As sports gambling enthusiasts wait for the outcome of the BetonSports trial, I wonder why no one has created the premier fantasy sports Web site.

Editor's Note: I have done some research on this topic, but I am definitely not an expert.

We know ESPN, Yahoo, CBS and MSN have fantasy pages, but is one site been named the leader? Can you really name the best fantasy sports magazine or television show to watch. I know ESPN produces fantasy shows, but you would think they should have shows on a weekly basis.

In online research about the demographics of fantasy sports users, I determined the following:

“Fantasy sports industry generates $1.5 billion in revenue per year, and has 15 million total consumers. The industry has been growing at a rate of between seven and 10 percent per year for the last three years.” – iMedia Connection

“The typical active fantasy sports player is a married, educated suburban male homeowner in his late 30s. Hitwise demographic data show that 55 percent of visitors to fantasy sports sites have household incomes greater than $60,000 per year, and according to a survey, they spend $493 per year on fantasy sports.” -- iMedia Connection

While gambling sites make 10 times the amount of money as fantasy sites, in the long run, it seems like a smarter idea to create the premier fantasy league Web site. The government is really trying to crack down on online gambling.

There is such an unlimited potential to make money in the industry. Hire writers to follow their sport in a blog format during the season and weekly columns during the off-season. Create leagues for people to use during the season. Other than ESPN and Yahoo, what other sites do people use consitently for their fantasy leagues?

It seems like you could keep the costs low, maybe $30 dollars a year and thousands of people would join the site. As I have discussed in previous blogs, the site could post weekly podcasts that discuss players, interviews with fantasy experts or Q&As from fantasy league players.

Last, if I created a fantasy sports site, I would negotiate to become the official sponsor of different sports leagues. I don’t think you can put a price on the amount of media and television exposure the site would receive from being an innovator in the industry.


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