The FSTA estimates that the average fantasy football sports player spends 3 hours per week managing a team, translating to 2.9 billion hours for 57.4 million players over a 17 week season. Of course, all of these numbers are a bit sketchy because of things that add additional time such as drafts, off-season reading and discussion. Combining these estimates with a $24 per hour average wage in the U.S. yields a time value of $50 billion per year. According to average income figures from the FSTA an hourly wage of $46 would increases the estimate to $97 billion. Added to actual expenditures and ad revenues, the industry amounts to anywhere from $50 billion to over $100 billion per year in tangible and intangible activity.
This fast-growing industry has low barriers to entry. Technology change is low because the tools that fantasy sports software developers use have not changed much in the past five years. Although fantasy sports are now accessed through a wider range of platforms, such as applications on mobile devices, the fundamental development of the software has not changed. Furthermore, investments for a fantasy sports software start-up company are relatively low because many are started by programmers who are willing to work at a discounted rate to get their company established. Many operators already have their own development servers because they are entering the industry from a similar field, and other costs are fairly negligible.
Actionable Insights & Insightful Data (Source FSTA.com)