The OFS market, which had a CEA of over Rs 6,000 crore in FY19 is estimated to more than double to Rs 16,500 crore in FY20
The Indian Online Fantasy Sports (OFS) industry has been growing at a rapid pace registering a 212% CAGR in the user base between 2016-19 to 90 million users as of December 2019, a study conducted by Federation of Indian Fantasy Sports (FIFS) in collaboration with KPMG revealed. Titled ‘Business of Fantasy Sports,’ the report highlighted the growth, impact and future of fantasy sports in India.
According to the report, close to 15-20% of the active users on OFS platforms are paid-users while 30-40% users play OFS on more than one platform. Given the rise in the number of users in the recent past, the number of OFS operators foraying into different sports have increased from 10 in 2016 to over 140 in 2019, even as currently the top four-five operators account for 95% of the market share. “Proliferation of new sports leagues and entry of OFS operators into other sports has reduced the share of cricket as a % Contest Entry Amount (CEA) from 95% in 2016 to 85% in 2019. This reduces the platforms’ dependence on a single sport and its associated seasonality,” the report stated.
Notably, the OFS market, which had a Contest Entry Amount (CEA) of over Rs 6,000 crore in FY19 is estimated to more than double to Rs 16,500 crore in FY20, at a growth rate of 167% over FY19-FY20. While OFS operators generated a revenue of Rs 924 crore in FY19 growing from Rs 262 crore in FY18, this was estimated to almost triple to Rs 2,500 crore by FY20.
The KPMG’s dipstick survey underlined that overall 65% of the respondents indicated sports was among the top 3 genres they watched on TV and OTT platforms. 16% of the OFS users mentioned that their motive of watching sports leagues was to track the performance of their fantasy teams so that they can make informed-choices in the game of skills while 55% of the users mentioned that their engagement with sports leagues increased once they started playing OFS.
Interestingly, even as covid-19 pandemic brought about a major hit on league- based sports leading to a disruption in revenues, the OFS operators proactively adopted strategies like introducing quizzing, introduction of new sports such as baseball and investments in platform innovation, etc. to ensure user engagement. Meanwhile, leading players such as Dream11 and MyTeam11 leveraged on their ancillary platforms FanCode and SportsTiger respectively to broaden their array of offerings to increase engagement and improve customer experience by educating them about sports that would in turn compliment their OFS platform offerings.
Going ahead, the report pointed that the OFS market is likely to fuel content for other modes of online sports engagement such as OTT that can leverage on the growing prominence of OFS. In fact, following the suite of developed markets, Fantasy Sports Insurance in India for OFS users is likely to emerge and develop as an independent industry. “With the popularity of Fantasy Sports across different sports types, the insurance providers have customised policies to suit the type of leagues,” the report observed.