DIRECTV (NASDAQ:DTV) Gaining On The Rapidly Growing Fantasy Football.
The NFL league is making a large revenue of around $10 million due to the coverage it gets from media, and especially from the DIRECTV (NASDAQ:DTV) channel that has made a contract with the league of about $1.5 billion for the whole year. This deal has been made on an eight year contract basis. The important elements of this deal are the addition of NFL Sunday tickets and the continued presence of the red zone channel. But with this, the agreement permits DIRECTV (NASDAQ:DTV) to increase its offerings and its first test will be to take an interview of the fantasy football fan on the creation of the Fantasy football zone.
DIRECTV (NASDAQ:DTV) vice president, Alex Kaplan said that he and his team were trying to find ways to cover the fantasy football better. Also, they got this idea of having a Fantasy red zone channel, which, although seems to relate with the fantasy zone, is different because it is related to the number of catches or injuries a team has had, in addition to other minor events, and whether a team will be in the red zone or not, whereas the fantasy red zone concentrates on a team’s performance
Also, Kaplan added that people are appreciating DIRECTV (NASDAQ:DTV), and according to the Fantasy sports Trade association, there are more than 41 million people who play fantasy sports in the U.S and Canada. More than 14% of USA’S population that is aged above 12 participates in the Fantasy sports and since DIRECTV (NASDAQ:DTV) is offering most to this sector, as compared to other TV channels, there are more chances of people liking the channel.
The NFL Sunday Ticket Max Package contains the DIRECTV (NASDAQ:DTV) fantasy zone channel that is part of the package. Not only this, live game streaming, scores and statistics on mobile screen and computer as well as highlights of a game are part of the package. The DIRECTV (NASDAQ:DTV) fantasy zone channel has been great addition to Sunday max package as now more people are subscribing to it.
DIRECTV (NASDAQ:DTV) has made a heavy investment for the success of DIRECTV (NASDAQ:DTV) Fantasy zone, as the developing costs are very high and the company would have incurred a seven digit cost. As the fantasy market is growing rapidly, the company will be encouraged to explore more opportunities in this sector.
Kaplan says that he is really excited regarding the daily leagues. He added that NFL is aware of the fact that DIRECTV (NASDAQ:DTV) has the largest consumer base for their leagues. He also says that DIRECTV (NASDAQ:DTV) might collaborate with Fan Duel or Draft kings as an addition to the program.
It is likely that Fan Duel or Draft kings might try to join with DIRECTV (NASDAQ:DTV), so that they could relate their name with the professional sports leagues, but DIRECTV (NASDAQ:DTV) should be careful in making a decision and should continue on its innovation and that is what shareholders expect from them.