When DirecTV introduced the NFL Red Zone channel, it became an instant hit. Millions tuned in to this commercial free channel every week hoping to catch action from across the league, especially games impacting their fantasy teams. DirecTV is capitalizing on this craving for football. A recent deal with the National Football League (NFL) is said to be worth about $1.5 billion per year over the next eight years, only adding to the $10 billion in annual revenue already being raked in by the league.
The DirecTV Fantasy Zone is the latest addition to the NFL Sunday Ticket max package.
“We’ve been thinking for a long time about how to better serve the fantasy market,” Alex Kaplan, DirecTV’s Vice President of Revenue and Marketing, told Forbes.
“Over the past two years, a number of us came up with this idea of a Fantasy Red Zone Channel — the CNBC for fantasy sports. When you look at the Red Zone Channel, it’s very much focused on a team’s performance. While fantasy is related, it’s a little bit different. It is focused on how many catches someone has and injuries, whether a team is in the Red Zone or not.”
Fantasy sports have become big business. The Fantasy Sports Trade Association reports more than 41 million people in the U.S. and Canada are playing fantasy sports. Additionally, nearly 15 percent of the U.S. population over 12 years-old play fantasy sports as well. But some argue that channels like Fantasy Zone and Red Zone are hurting NFL regional television ratings. The league, on the other-hand, is enjoying the big revenue.
DirecTV continues to push for success in this new market. Investing seven digits into a beautiful set in SoHo, Manhattan and hiring broadcasters show their long-term commitment.
“We have an obligation to shareholders and customers to continue to innovate,” added Kaplan. ”What we’re trying to do is enhance the experience that we have. Now we have a platform that is just for fantasy players.”
As NFL viewership shifts to top of the line commercial-less packages, the NFL will become more reliant on deals like this one with DirecTV for revenue. There’s great opportunity for growth in this market. With few competitors, DirecTV currently has a monopoly leaving room for new entrants.
Would you make the switch?