DraftKings launches live sports scores app that competes with... everyone
The daily fantasy sports company DraftKings, in its ongoing effort to come back strong this NFL season after an offseason marred by ugly legal battles and bad press, continues to make big business moves. On Friday, the company launched a new mobile app, completely separate from its main platform, called DK Live.
The app offers real-time highlights, scores, and editorial news. And with the push of a filter (“My Players” view) the highlights will tailor to the user’s current DraftKings lineup, showing you only the plays that resulted in fantasy points for the players you’ve drafted. DraftKings is calling the app “a digital Red Zone.”
DraftKings users cannot draft lineups in the DK Live app, but certain sections of each app will now “fluidly send users” to the other.
But DK Live isn’t just aimed at fantasy sports players; DraftKings hopes all football fans will use the app.
In that effort, the app will compete not just with FanDuel, its fellow major market-share leader in the business, but with any major sports media company’s web site or mobile app that offers scores and news, from ESPN (DIS) to Bleacher Report to Yahoo (parent company of Yahoo Finance) to even social media platforms like Twitter and Facebook, both of which have aims to be the go-to place for live sports discussion.
“The goal for us with this is really one-stop shopping,” says Corey Gottlieb, VP of content at DraftKings. “The reason we have news in this app, and scores, and highlight videos, is we want you to do all your consumption within this app.” The biggest hurdle to adoption, Gottlieb says, will be getting people to change their “ingrained behaviors” on an NFL Sunday. “There’s a relatively challenging barrier for entry for anything new in the sports consumption space. So I think it’s less about convincing people the app is great, and more about getting them comfortable with a new default experience.”
There is a considerable risk in pushing users to a second mobile app when the primary app itself is still new and growing. It could be a distraction, or, worse, it could annoy many people.
“The analogy we’ve been using is Facebook and Facebook Messenger,” says Gottlieb. “This is a standalone app, it has unique features, but it’s fundamentally connected to DraftKings and driven by DraftKings data. So for a DraftKings user it becomes not only a necessity but a real desire.”
When Facebook launched its Messenger service as a separate app, it ruffled feathers at first, especially because Facebook soon made it impossible to read messages in its main app; users must download the additional app to read messages they’ve received. But now Facebook says its Messenger app has topped 1 billion users. In other words: anyone annoyed eventually gave in.
“We had a lot of conversations early on,” Gottlieb acknowledges, about the potential risk of a separate app. He says it would have been technologically feasible to simply put the features in DK Live in the main DraftKings app, which did have some scoring data already. But with a standalone app, he says, “We can take this wherever we want. If we want to monetize it, we can, if we want to add features to it that aren’t in DraftKings native, we can. We don’t feel that this is a product usable only to DraftKings users.”
Monetize it? That sounds like charging a fee for premium features, or layering on advertisements, and either of those could help DraftKings, a billion-dollar-valuation private “unicorn” startup, become profitable.
DraftKings didn’t make any new hires for the app on the editorial or technical side, butit did require a “complete rethinking” of its editorial organization, since the news section of DK Live will have original content. DraftKings has 12 full-time editorial employees producing writing and video for the site and app, many of them journalists, as well as a network of freelance fantasy content contributors who write exclusively for DraftKings.
DraftKings, FanDuel, and Yahoo Daily Fantasy have all recently launched new options that mimic traditional season-long fantasy sports in a daily setting. The companies tend to play off each other. So: look for FanDuel to soon come out with something similar.
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Note: Yahoo, the parent company of Yahoo Finance, offers a daily fantasy sports product.
Daniel Roberts is a writer at Yahoo Finance, covering sports business and technology. Follow him on Twitter at @readDanwrite. Sportsbook is our recurring sports business video series.
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