What Does STATS Acquisition of PA SportsTicker Mean?
Just about everyone reading this right now is probably already aware that STATS acquired PA SportsTicker earlier this month. Unfortunately, other projects kept us from affording it proper treatment at the time, but this move is still worth attention 24 days after it was announced.
Specifically, when one of the three major statistics and information providers is gobbled up by another, it only makes sense to consider the impact.
From a practical standpoint, the move should certainly strengthen STATS’ existing stateside efforts. It’s tough to imagine how adding SportsTicker’s capabilities to the fold could do anything but help when the two companies already focused on much the same material. Of course, the similar focuses also means overlap from the merging, and SportsTicker’s 125-person staff has seen layoffs as a result.
The acquisition also 
included a deal with SportsTicker’s former parent company, PA Sport to extend STATS’ reach in England. That could help with important international sports of soccer and cricket, which figure to be at the center of fantasy’s expansion to a global marketplace. STATS CEO Gary Walrath mentioned the international aspect of the deal in the company’s news release.
“We also recognize PA Sport’s world-class capabilities, and anticipate the creation of many new and compelling products for our clients and league partnerships, globally, as a result of our collaboration,” he said.
Most important to companies within our industry, though, might be the paring of information outlets. Instead of three choices, sites deciding on stat and news feeds will now be down to STATS and The Sports Network. What will that mean for areas such as pricing, service and overall quality of the product?
We want to hear what you think. What will it mean for our industry or your site in particular? Has your site already been impacted by the change? Let us know either with a comment right here or an e-mail to FantasySportsBusiness@gmail.com.
Tags: fantasy sports, fantasy sports business, fantasy sports industry, pa sportsticker, stats
March 29th, 2009 at 11:28 pm
Less competition typically means higher prices, lower quality of service, and less innovation. The question really becomes, how do start-up firms in this industry raise enough capital to source quality stats when only two major players exist? I can speak from experience that even with 3-4 firms the costs of stats were about 80% to 90% of expenses when we priced trying to do business a couple years ago.
I don’t believe that stats should be free, since there is a definite cost to the stat providers to collect them, but there is little-to-no ability to find better prices or find recourse for poor service when the alternatives are few.
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