Streaming battles persist as DraftKings keeps exploring the terrain
In a strategic move aimed at expanding its digital sports entertainment offerings, DraftKings has hired Todd Dubester as its Vice President of Media Strategy and Stacie McCollum as its Head of Programming.
Todd Dubester, previously working at Disney and Universal, brings a wealth of experience in the entertainment industry. Stacie McCollum, on the other hand, has a background at ESPN. The appointments suggest that DraftKings is looking to delve deeper into the world of sports entertainment.
Jed Kelly, consumer internet analyst at Oppenheimer & Co, believes that DraftKings is trying to build a fan interactivity platform. Kelly views DraftKings as a digital sports company, not a gaming company. According to Kelly, streaming is a potential way for DraftKings to build a universal viewing experience for sports fans.
The goal of the streaming platform that DraftKings may want to launch is to cater to live sports and gaming content, aiming to enhance user engagement through streaming. The platform could potentially launch as early as 2025, although no specific date has been given.
Kelly also suggests that DraftKings may be interested in securing Tier 1 sports rights. He envisions a single app for all sports as an ideal scenario in a perfect world. This would allow sports fans, numbering approximately 50 million households in America, to access all their favourite sports content in one place.
In terms of market capitalisation, DraftKings stands at $18.56 billion, while Fubo, which has an online sportsbook up and running in Arizona and Iowa, has a market cap of $1.53 billion.
It's important to note that neither McCollum nor Dubester have experience with sports betting, daily fantasy sports (DFS), or Non-Fungible Tokens (NFTs). This suggests that DraftKings' foray into streaming may be a separate venture from its existing gaming operations.
In conclusion, DraftKings' move into streaming is a strategic one, aimed at expanding its digital sports offerings and engaging with sports fans in new and innovative ways. The potential launch of a streaming platform could revolutionise the way sports fans consume content, and DraftKings is well-positioned to lead this change.
