DraftKings Pushes Diversification Efforts With Streaming Video Service: What Investors Should Know

Sports betting giant DraftKings Inc (NASDAQ: DKNG) has grown from a leading daily fantasy sports operator to a sports betting leader over the years and has also looked to diversify itself in the sports sector. Here’s a look at its new efforts.

What Happened: The Boston-based company announced plans to launch its own streaming video service, a move that comes after several years of investment in the sports media sector.

The free platform, expected to debut in the coming weeks, will include videos of podcasts with advertising, according to Bloomberg News.

“Over the years, DraftKings has expanded our media footprint by securing top talent and trusted personalities across sports media, and we’ve begun the initial rollout of DK Network,” a spokesperson said in a statement.

Related Link: DraftKings Q4 Earnings Highligths - Revenue Beat, Guidance Raise, More States Leaglize Sports Betting And More 

Alongside investing in television commercials DraftKings and other sports betting operators have signed deals with celebrities and sports media personalities to help promote their platforms.

DraftKings acquired the Vegas Sports Information Network (VSiN) in 2021 in a push to grow its sports content. The company also has partnerships and an investment with Meadowlark Media, a sports media company created by former ESPN President John Skipper and several others.

Why It’s Important: FanDuel, a DraftKings rival owned by Flutter Entertainment (OTC: PDYPY), launched a TV network and streaming service in September. The company also signed a deal to license video podcasts from sports media company The Ringer.

Penn Entertainment (NASDAQ: PENN), which rebranded from Penn National last year, owns Barstool Sports, the home of many top sports podcasts nationwide. When Barstool Sportsbook was launched as a sports betting platform, the company was able to leverage its strong user base and personalities to help gain customers.

In the highly competitive sports betting sector, DraftKings diversification efforts could help with customer acquisition and growth. The company was able to become an early leader in sports betting thanks to its existing customer base from daily fantasy sports, similar to FanDuel.

By utilizing sports streaming, the company can cross-promote and also gain revenue from its advertising platform and show its own advertisements to potentially lower is spending on other networks.

Alongside sports media efforts, DraftKings has also launched several Web3 initiatives, including its DraftKings Reignmakers NFTs that may bring a new audience to its fantasy sports and sports betting efforts. 

For more on the sports betting landscape and what could be next for popular betting segments and legislation, tune in to the Benzinga Sports Betting Titans virtual event on May 24. DraftKings Co-Founder and CEO Jason Robins will be among the featured speakers at the event.