Thursday, November 19, 2015

TV Nets Could Lose Millions Over Fantasy Sports Ads

Most of the growth in national television ad spending in the third quarter was driven by Draft-Kings and FanDuel, the top two daily fantasy sports sites, according to The NY Post.

Almost 60 percent of the sales growth — or $134 million out of a total $227 million — came from those two players, according to Bernstein media analyst Todd Juenger.

The barrage of TV spots also boosted a slew of media companies with sports programming, including CBS, Disney and 21st Century Fox, Juenger said.

Ultimately, that found money was the difference between a winning and a losing quarter for the TV business, according to analyst Michael Nathanson of MoffettNathanson.

All that newfound money could disappear just as quickly. The two fantasy sports giants will face off in court Nov. 25 against New York Attorney General Eric Schneiderman in the hope of making the case that they are a game of skill rather than illegal gambling outfits, as he alleges.

TV ad sales execs were bracing for the surge in ad dollars to slow. Both DraftKings and FanDuel weighted their ad loads toward the beginning of the NFL season in a battle to sign up as many new players as possible.

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