![DraftKings Marie Donoghue Media Rights Live Sports](https://www.sportico.com/wp-content/uploads/2024/02/DKSign.webp?w=1600&h=901&crop=1)
DraftKings’ hiring of longtime sports media executive Marie Donoghue does not signal its interest to acquire live sports rights, CEO Jason Robins said Friday.
Donoghue, who helped build out the live sports portfolio at Amazon over the past five and half years, was hired by DraftKings last month as the company’s chief business and growth operator. It led many to speculate whether the company might be seeking to acquire live sports rights for its platform.
“I wouldn’t say this is any way a signal that we’re looking at live sports rights, that’s not something that right now is on our minds,” Robins said on a call with analysts. “But she brings a number of different experiences and skillsets that will help us understand all parts of the ecosystem. We do a lot of business with folks who own live sports rights, so having that understanding from the other side of the table will be very helpful in future opportunities that we explore, and future negotiations.”
It’s worth taking those comments with a grain of salt. Many streaming and digital executives said they weren’t interested in live sports, until they were. That’s true of Apple’s Eddy Cue, whose company is now a frequent bidder for live rights, and Meta’s Mark Zuckerberg, whose company has experimented with rights from a number of different leagues. Netflix executives have been adamant about their lack of interest in live sports, even though that strategy appears to be shifting, and Google’s YouTube had few live rights until committing $14 billion to the NFL for Sunday Ticket.
The line between sports betting and sports media is already blending, especially as gaming operators push bettors into more (higher margin) in-game bets. Sportsbooks such as DraftKings like to pair live sports streams with odds on the same screen. Those streams, secured through data companies such as IMG Arena or Genius Sports, are not exclusive, cost a lot less than the main packages and often come with size and resolution restrictions.
DraftKings has also proven willing to expand into new areas. A daily fantasy company originally, the business has grown into sports betting and iGaming. It has experimented with NFTs and e-commerce, and this week the company announced a $750 million deal to acquire digital lottery app Jackpocket, which should give it a foothold in a different corner of the gaming sector. DraftKings purchased gaming network VSiN back in 2021, and in May, it launched the 24/7 DraftKings Network. DraftKings, which ended 2023 with $1.3 billion in cash, is seeking a more diverse platform for sports fans; it’s certainly possible to imagine the company one day looking into more comprehensive live rights deals.
As Amazon’s vice president of U.S. sports content and partnerships, Donoghue played a major role in the company’s gradual push into live sports. Most notably, that includes its relationship with the NFL; Amazon now pays the league about $1 billion per season for exclusive rights to the Thursday night game. Before Amazon, Donoghue spent nearly two decades at ESPN.
DraftKings (Nasdaq: DKNG) reported fourth quarter earnings on Thursday afternoon alongside the Jackpocket news. Revenue ($1.23 billion) and losses per share ($0.10) were roughly in line with consensus estimates. The stock is flat in trading on Friday morning.