Feeds

Sports sites step nearer the gallows

Big three to dominate

  • alert
  • submit to reddit

Boost IT visibility and business value

Dotcoms were this week warned to expect more casualties in the saturated UK online sports market.

In five years' time the sector will be dominated by a handful of sites, according to Forrester Research.

It warns that betting revenues won't be enough to save many sites, stating that by 2006 only 15 per cent of their revenue will come from gambling. Other technologies, such as interactive TV, will take much of the betting cash.

Meanwhile, although the industry is expected to generate £700 million worth of bets by 2006, sports sites will only get to keep around a tenth of this due to pay-outs for winnings and taxes.

The report states that, without cash from betting, "the sports site market will still be over-supplied and, despite recent closures, more casualties should be expected."

Researchers also expect the market to be dominated by three major multi-sports sites by 2006 - Sports.com, Sky and the BBC. "Those that can't acquire strong, unique, focused content will die," it adds.

"To maximise both revenue and traffic, sites need to re-evaluate their promotional offerings," said Forrester analyst Rebecca Ulph.

"Advertising remains sports sites' revenue stream: It will contribute 58 per cent of income in 2006, but half of this will come from performance-based deals, up from seven per cent in 2000.

"To ensure that they attract advertisers, winning sports sites must offer online replication of offline sponsorship models, develop performance-based pricing, and exploit cross-promotional capability," said Ulph. ®

Related Link

Forrester report

Related Stories

Death of Web 'inevitable'
Cricket goes for online middle stump
Sports.com buys Megastar
Sportsline.com staff get red card

The Power of One Brief: Top reasons to choose HP BladeSystem

More from The Register

next story
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Bose says today is F*** With Dre Day: Beats sued in patent battle
Music gear giant seeks some of that sweet, sweet Apple pie
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Securing Web Applications Made Simple and Scalable
Learn how automated security testing can provide a simple and scalable way to protect your web applications.