Fantasy Sports Services in the US Industry Market Research Report Now Available from IBISWorld

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While fantasy sports have always been popular, the trend has been growing steadily as more people get connected to the internet and mobile devices, making it easier to manage teams and trades. Despite a stumble during the recession when per capita disposable income was low, the industry has posted double-digit annualized growth since 2007. This industry generates most of its revenue from advertisements, so as advertising expenditure grows, it boots Fantasy Sports Services' revenue. As free time decreases, however, there is less time for consumers to join fantasy leagues, potentially hurting revenue. For these reasons, industry research firm IBISWorld has added a report on the Fantasy Sports Services industry to its growing industry report collection.

IBISWorld Market Research

IBISWorld Market Research

Despite a period of low disposable income, industry revenue has grown rapidly

The Fantasy Sports Services industry is expanding quickly. Revenue is anticipated to grow an astounding an average of 12.0% annually to $1.1 billion in the five years to 2012. This growth has been underpinned by rising interest in fantasy sports, growth in the number of broadband and mobile connections, rising advertising expenditure and a rise in sports participation and viewership. The industry is forecast to grow 17.5% during 2012, led by mobile internet growth and increased fantasy sports participation. “Advertising and sponsorships on fantasy sports websites are one of the largest drivers of industry revenue,” says IBISWorld industry analyst Nima Samadi. Internet ad spending has risen steadily over the past 15 years as internet usage increased, which has allowed fantasy sports services revenue to convert rising website traffic into growing revenue. Industry growth has also been underpinned by rising sports viewership and rising participation in sports. Fantasy sports add a new dimension to the sports viewing and sports fan experience, since they encourage fantasy sports participants to follow players or games they otherwise wouldn't. The number of fantasy sports participants has also risen in lock step with the availability and proliferation of broadband and mobile connections. The increase in mobile internet connections and applications designed for mobile fantasy sports management has enabled users to stay on top of their fantasy sports without being tied to their computers.

The industry will continue to grow aggressively during the next five years. This will be partially due to growth among new types of fantasy sports leagues. Auto racing currently makes up 12.0% of the fantasy market, but given its popularity among television viewers it is poised for strong growth over the next five years. Golf and soccer are also on the brink of expansion due to their rising popularity. Women are an untapped demographic for fantasy sports services. Currently as many as 25.0% of fantasy sports participants are women. However, they only make up about 10.0% of the fantasy sports market in terms of revenue. Fantasy sports providers that find a way to cater to this growing but under spending demographic (and loosen their purse strings) will be well situated for success going forward.

The Fantasy Sports Services industry displays a low level of market share concentration with the top four players only accounting for about 30.1% of industry revenue in 2012. While Yahoo!, ESPN and CBS are the most visible industry players, online fantasy sport platforms are relatively simple to develop, meaning the industry is comprised of hundreds of small-scale players. However, these smaller scale players are unlikely to have the global scope that the top industry players have. According to Samadi, industry concentration has increased slightly over the past five years as the public's familiarity with the top players' platforms has led to a consolidation of demand around the companies with the biggest customer base. For more information, visit IBISWorld’s Fantasy Sports Services in the US industry report page.

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IBISWorld industry Report Key Topics

This industry develops software and markets an online platform for multiplayer fantasy sports. Fantasy sports are games where participants act as general managers to build teams that compete against other fantasy owners based on the statistics generated by real individual players or professional teams. The most common variation converts statistical performance into points that are compiled and totaled according to a roster selected by a manager that makes up a fantasy team.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit or call 1-800-330-3772.

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