Dream 11 : Exposed | Business Case Study thumbnail

Dream 11 : Exposed | Business Case Study

Hi everybody ever since the indian premier league has started the indian business ecosystem has been pouring in thousands of crores into sponsorships but while it's quite normal to see a company like pepsi or tata pour in hundreds of crows to sponsor the ipl in 2020 it was mind boggling to see that a 12 year old startup like dream 11 won.

The bid to sponsor the ipl for an astonishing 222 crores and since then dream 11 has become one of the fastest growing sports fantasy platforms in the country with more than 140 million users as of 2021 and guess what dream sports is now valued at 8 billion dollars and is now one of the rare consumer focus startups.

To actually post a profit as of 2020 there are profits to that 180.8 crores and the revenue has already crossed 2 000 crores the question is what is this dream level model how are they able to generate profits in spite of spending hundreds of crores into marketing and most importantly how did this company very.

Very cleverly escape the garment regulation that could have banned it for being a gambling game this video is sponsored by skillshare skillshare is an online learning community where millions of curious learners come together to take premium classes from famous creators and industry leaders from marketing to video editing to ui ux.

Design they have it all last time i took a class from nathaniel drew on content creation and learned how to determine my individual value as a creator and how to overcome my insecurities this time my entire team is actually taking a class from ellen lupton this class taught us to take baby steps into graphic design with five basic principles of graphic.

Design which we will soon try to incorporate in our marketing materials instagram creatives and maybe even our thumbnail soon the best part about skillshare is that it is an ad free platform and works on a subscription model this means that just like when you pay for netflix you get access to all the shows on the platform.

At skillshare you get access to thousands of classes all at once this includes indian creators like alicia souza's illustration class and ekta chaudhary's gardening class and a lot more this subscription will cost you less than 1800 rupees a year which comes down thoroughly 150 rupees per month that is lesser than the cost of a.

Starbucks coffee for things coolers skillshare is giving a one month free trial if you use the custom link in the description this is applicable only for the first thousand people so go ahead click the link below and explore all the amazing things that skillshare has to offer moving on let's first try to understand how does the dream 11 model.

Work let's say shubham wants to try his hand on dream 11 and now that it's the ipl season shubham is a chennai super kings fan and he's excited about the csk mi match so he selects the cskmi match and is given a hundred crore virtual ports to select his team of 11 members this purse is capped and is the same for.

Everyone who's wanting to play on dream 11. now obviously the better the player the higher will be the amount that shubham has to pay to get the player into his team and this is where the strategy comes in in this case if mayan rising dhoni and rohit sharma both have a dream level price tag of 11.5 crore although shubham would want to have both.

Of them in his team he wouldn't be able to do so because he would be left with very little money to purchase other players another catch we hear is that shubham although a csk fan can not pick all the 11 players from csk at max he can pick 6 members from csk and a minimum of 5 meaning he will either have to select 5.

Or 6 players from mumbai also now please note this very very carefully because it's very important for the discussion ahead so coming back the teams have to be logged in before the start of the game the toss is where shubham would actually get to know the playing 11 and he would quickly make the changes to his team bases on who is in and who has been.

Benched now shubham enters his team into contests these contests are a pool of different people who enter the contest with different permutation and combinations of the 22 available players this contest starts from as low as 10 rupees but could go all the way up to thousands of rupees now let's say.

Shubham who's a little skeptical enters the contest with an entry fee of 50 rupees and just like shubham there will be thousands of players who will enter the contest now dream 11 basically acts as an organizer for these contests such that all of these players are categorized on the basis of the amount and the.

Participants then play the game so there'll be a 50 rupees contest a thousand rupees contest and so on and so forth for 50 rupees let's say the number of participants is 3 lakh and only the top 50 of the participants get a payout and for this there's a sliding scale of payouts from rank 1 to rank 1.5 lakh so the first ranker gets the highest amount.

And from there onwards the amount keeps descending and whether shubham ends up in the top 50 or not depends on how well the players he chose actually played in the match and eventually the number of points this team makes decides how much money shubham will make these point systems are pre-set by dream.

11 so you get a different point for a catch a different point for a weekend a different point for the number of runs your player scores and you can see all of these in real time along with your ranking and from there onwards you have nothing in your control all you can do is just wait and hope that your players play.

Well this is how based on the choice of players some dream 11 members will lose while some will win if this is very very clear to you let's try to understand how do these fantasy sports companies like dream 11 actually make money the answer to this is pretty simple roughly 20 percent of the total amount.

Collected for a contest goes to dream level as commissions so if the entry fee for a contest is 50 rupees and 3 lakh people enter the contest then the total money collected amounts to 1.5 crores out of which 20 percent is usually dream 11's cut so in this case if 1.5 crore is collected 30 lakhs by default is dream levin's cut and the rest of the amount.

That's 1.2 crores is disbursed to the winners as payouts so when you as a user enter various contests you make money in some you lose money in some and regardless of whether you make money or not dream 11 always walks away with a hefty profit now the question over here is isn't this.

Just like gambling i mean even over here users select a particular player and they do that because they hope that the players will play well and when they do these players actually win and just like in betting while the money of the players placing the bet is left to chance the bet organizer wins by default so if.

It so obviously looks like gambling to us and considering the fact that betting is banned in most of the states in india how is this company operating all across the country and that too being a sponsor to the biggest sports events in india the answer to this lies in a rajasthan high court case when a man named chandra shankara filed a complaint with the.

Rajasthan high court and he stated that the public is being defrauded in the name of dream 11 and that it amounts to gambling and betting and should not be allowed in india but guess what the rajasthan high court dismissed the petition by relying on the judgments of the punjab haryana and bombay high court the high court.

Observed while dismissing the petition and stated and i quote it can be safely deduced that the result of the fantasy games is not determined merely by chance or accident the skill of the participant determines the result of the game and has a predominant influence on the outcome of the fantasy game this is what the court.

Said in fact this was even taken to supreme court and the outcome was no different the petitioners contended that fantasy sports companies like dream 11 are pure gambling and not games of skill now in order to understand this argument we first have to decide on the definition of gambling.

Gambling is often defined as betting gaming or participating in an activity that will be a game of luck and not the sport of skill to win a much bigger amount of money or any other prize by wagering some amount of money now for dream 11 the defense was that it takes analytical skills strategy and historic knowledge about the players before.

Picking them and putting them in a team together it's not mere chance and it's not done knowing the outcome of the game and here's where the feature that we discussed earlier comes into play you see guys when you're playing on dream 11 you aren't betting on one team alone the 11 players that you select will be in a 5 6 combination meaning you've got five.

Players from one team and you have to pick six players from the other team or vice versa and the argument over here is that with the knowledge of the player's past performance and on the basis of the record in certain games a judgment is supposedly made by the players of dream 11 like chris gayle usually gets out very quickly in the finals or dhoni.

Plays insanely well at chennai so by observing these kind of records it's argued that the players of dream 11 are using their skill and knowledge to end up on the winning side and with this in consideration the rajasthan high court observed that and i quote whether any particular team in the real world match wins or loses is also a.

Material as the selection of the virtual team by the participant involves choosing players from both teams playing in the real world and that's exactly what the supreme court also stated this is how the case was closed and dream 11 was legally safe but the problem was that from the marketing standpoint the damage had.

Already been done despite the judgment going in their favor it was still perceived to be a gambling game as soon as this news broke out in fact google play store doesn't even host dream 11 on their platform and you might have downloaded the app through an apk from the dream level website this is because the play store.

Has strict guidelines on the apps that indulge in gambling directly or indirectly so now the question is how did dream 11 fix this dent to their reputation very very simple they robed in the legend mind raising dhoni himself and when dhoni endorses a particular brand we all know what is the effect of it.

Along with that dream 11 also launched a campaign with the tagline kelo di marxe very evidently highlighting the need for strategic thinking this is how dream 11 got back into the game and along with dream 11 many such sports fantasy companies have jumped into the cricketing craze to make as much money as possible and the dream sports 8.

Billion valuation makes it quite obvious as to where this industry is heading now the question is should you play dream 11 or not well people if you ask me here's my two cents i don't know if dream 11 is a game of skill or a game of chance but what i know for sure is that the amount of time and money that you're pouring into dream.

11 if the same thing is channelized towards acquiring a skill it is bound to give you way more returns and the probability of getting return increases and the same thing is what i say about network marketing also there is no question about whether that is a scam or not the only point is when there are far better ways to make more money.

And that too more calculatively why do you need a network marketing scheme or a dream 11 like app to make money and if you're just doing it for thrill then that's completely your call and just like what i say for crypto only put in as much money as you can offer to lose so tomorrow if you put in thousand rupees and you lose it it should no way.

Affect your life or your family's life if that is clear then it is pretty much okay to play dream 11 but if you ask me i would always go for a skill than going for a fantasy sports app and before we say goodbye things cool is now available in tamil and telugu so if your parents or your friends wanted to listen to these business case studies in their own.

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