Dream11 – Episode 2

In the last episode, we introduced the term – freemium model.

But what exactly is it?

Dream11 – Episode 2

The Freemium business model enables consumers to make free use of the basic features of a software, game, or service and charges only for upgradation.

Roughly 85% of the total registered users do not pay to play on Dream11. If you want to participate in practice matches, you can play for free, but if you are looking to win money, you need to pay the entry fee per match.

The movie begins!!

The Business Model – Put your money where your mouth is!

How do they earn money?

Let’s say an IPL is going on, and you pay entry charges to play on Dream11. Since a definite number of people can register for the same match, you choose your 11 member team with all the excitement.

We hope you win! :p

But what about the money of those people who lose?

The losing amount is bifurcated into what Dream11 retains and what it distributes among the winners.

Wooing the Fans!

The process of trust-building takes time and effort. Let’s look into Dream11 strategies to acquire customers.

Low price point – The registration fee on Dream 11 is as less as Rs 50. If you are an ardent sports fan, you don’t mind experimenting for just Rs 50, right! And this helps Dream11 to create a large user base.

Smooth Refund – They deliberately make sure that refunds are a matter of seconds. If someone is even one percent unsure of their money being unsafe, they can immediately withdraw.

Network Effect – As per Investopedia, the network effect is a phenomenon whereby increased numbers of people or participants improve the value of a good or service.

What can be the best example of the network effect other than Facebook? You are on Facebook because your friends are on it, as simple as that. You will play on Dream 11 because your friends and network are there, making it hard for you to exit from the platform.

Credible Partners – The funds raised by Dream 11 helped them secure an exclusive and strategic partnership with the Indian Super League, International Cricket Council, Pro Kabaddi League, Federation of International Hockey, National Basketball Association, and many others. It helps the company access the associations’ userbase of their fantasy users and adds credibility to the platform.

Competitive Dynamics!

Dream11 has built a market for fantasy sports in India.

When pie gets bigger, everybody’s share also gets big. With the entry of Dream 11, a host of other players also entered the market.

Credit: Sarthak Sharma and Piyush Tolani

A snapshot of existing competition tells us that Dream 11 is the largest category driver. It will be interesting to see how it evolves in the coming future.