INDUSTRY FORUM

Comments

  • Barbarian

    It seems they don’t have any “real” advertising costs (at least I have never seen/heard any commercials, ads etc. and they rarely have any deals with sites like RG); so I guess the main question is – is the rake sufficient to cover their operating costs and the overlays? FD and DK may no longer be valued at over a billion but they are certainly in the hundreds of millions. Nevertheless, there have been numerous articles stating both are yet to become profitable companies. How about Yahoo DFS?

  • DanielHaight

    • Yahoo Representative

    I can’t say much here, but will say that Yahoo DFS does not exist as a standalone product or company, so it’d be hard to compare to the other competitors out there. We view DFS as an extension of our entire suite of fantasy products. If our season long users are going to play daily fantasy, we want to offer them a safe and secure place to keep playing on Yahoo, as well as the ability to play season long and daily in one app/site.

    Feel free to DM me if you have other questions, happy to answer what I can.

  • frugal

    Just like to say it’s nice to see an official Yahoo rep on here. I switched to Yahoo NBA DFS this season and had a great experience. Looking forward to next season.

  • kaetorade

    • 2013 DraftStreet DSBBC Finalist

    Daniel does an incredible job of making himself available both here and directly on twitter. That may change if/when Yahoo expands, but for now, I’m thankful. I doubt that they are profitable at the moment because they seemed to have allocated quite a bit for customers in terms of overlays, bonus money, and free rolls(yahoo cup!).

  • tvsfrink

    I have noticed a fairly significant reduction in MLB overlay, which is a good thing long-term.

  • dirtydistance

    I love the Yahoo Cup. Wish other sites did this where you play weekly towards a seasonal prize

  • frugal

    @dirtydistance said...

    I love the Yahoo Cup. Wish other sites did this where you play weekly towards a seasonal prize

    I think the Cup concept is fantastic, perfect blend of daily and season long. They should offer paid entry versions as well.

  • ATL_Gunner

    I would think that Yahoo’s DFS product benefits enormously by already having the server space and technical knowledge for site operation.

    I also want to say I love the Yahoo Cups and would love a properly structured paid version. NBA was a bit long, however.

  • tvsfrink

    @frugal said...

    I think the Cup concept is fantastic, perfect blend of daily and season long. They should offer paid entry versions as well.

    Absolutely!

  • Barbarian

    Daniel, I certainly understand you can’t reveal much and thanks for chiming in… I was thinking the question would be an interesting one for the community but it seems that is not the case :)… I guess the people realize the product is part of the whole Yahoo Fantasy Sports and valuations are not straight forward… kaetorade example with the Yahoo Cup is a good one… Yet I’m sure internally you have a pretty good idea where Yahoo DFS stands in terms of profitability…

    Will the Verizon deal close affect Yahoo DFS in any way, shape or form?

  • MrNastyTime91

    • 527

      RG Overall Ranking

    • Ranked #81

      RG Tiered Ranking

    .

  • DanielHaight

    • Yahoo Representative

    @Barbarian said...

    Will the Verizon deal close affect Yahoo DFS in any way, shape or form?

    Hopefully for the better! Verizon is obviously very invested in sports media, and fantasy/DFS is a big part of the sports media landscape. Since the deal hasn’t closed yet (expected mid-June), there hasn’t been any meaningful discussions, so definitely no short term change. Hopefully long term we will see some more investment…stay tuned!

  • Yeoman

    @Barbarian said...

    they rarely have any deals with sites like RG

    I don’t find that surprising at all—there’s a sense in which sites like RG are their real competitors, more than DK and FD.

    They’re a media company, after all. The business model for the free seasonal games seems to be to use fantasy to drive traffic to their online content, which in turn drives advertising revenue. If you’re reading Andy Behrens or Scott Pianowski or you start clicking around on the site, they win. DFS can probably function as a loss leader to some extent—they don’t need to have the rake cover operating costs if they’re picking up revenues elsewhere.

  • awilson45

    I liked yahoo when I played there, but I found the pricing algorithm to be very weird. It made it difficult to move away from the obvious bargain plays.

  • YoungFischer

    IMO Yahoo’s player pricing is the worst of both worlds—it’s very unfriendly to recreational players while not creating a compelling product for veteran players. The salary cap is relatively tight, but they always leave a lot of platoon or backup players near the minimum (i.e., Josh Rutledge for $7 tonight, obviously priced as a backup despite him starting tonight). Optimal strategy is take just enough cheap bats to load up the rest of your roster. This is a very difficult thing to do for recreational players who aren’t familiar with many of the part-time players, while causing huge overlap among experienced players. A better player pricing strategy would increase the minimum salary for hitters to make a very challenging game for everyone or alternatively reduce the salaries of the more expensive players to open up the field of players (or some combination of both). I don’t mean to be overly critical or negative, every site has their quirks, please take it as constructive criticism of an otherwise decent product.

  • crazypaul

    Is Yahoo coming back to FL anytime soon? I dont understand why it went away when FD & DK stayed.

  • stpelikan66

    I love the Yahoo Cup as well. Started with NFL, and played NBA and now MLB.

    But I have to say that I am more successful on Yahoo than FD and DK, most likely due to the low volume of experienced players on there. Plus to me it’s a nice change of pace in a way.

    I do hope though that the pending merger with Verizon strengthens the product and not diminish it.

  • curt777

    Are all the season-long NFL leagues on yahoo rake-free?

  • mwgdfs

    ive done pretty well on Yahoo NFL. Lots of fish over there

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