Fantasy sports were once just a fun way for diehard fans to express their love of the game together with other zealots, without actually getting out on the field themselves. Now they are a multibillion-dollar business whose tech-savvy clientele increasingly drive how the pro leagues operate and the way big games are broadcast.
The industry’s ascendancy was on display at the Fantasy Sports Trade Association’s summer conference this week, where sports giants like broadcaster ESPN and the National Basketball Association championed fantasy leagues and promised more fantasy-friendly steps to feed the boom.
Fantasy competitors once matched their dream teams against others to suss out their nose for talent and for simple bragging rights. Today, with 51.6 million Americans participating in fantasy sports leagues, according to the FSTA, players can pay to join competitions that award prizes of $1 million or more.
Fantasy players spend an average $465 per year on their imaginary competitions, up markedly from $95 in 2012, according to the market research firm Ipsos. That is a big change from the old days when fantasy players were dismissed as statistics geeks and relegated to the fringes.
Survey data suggest the industry has hit the marketing sweet spot, with more than half of players in the coveted 18-34 age group and with above-average incomes and education. The real sports industry is taking them more seriously because, according to Ipsos, they watch more live sports and consume more sports news than others. That allows real sports leagues to sell fantasy players more premium-viewing products and to command higher rates from ESPN and other broadcasters due to higher ratings. Those broadcasters in turn are able to attract more money from advertisers.
Business Insider
Like the Real Game, Fantasy Sports Now Worth Billions
by John Biers