Written Communication (WC)

Project Report – Dream 11

Section – B
Study Group – 4

Report Prepared By:

P23090 – HARKIRAT SINGH

P23106 – NEHA YADAV

P23115 – RAJAT MALI

P23105 – MANISH JAIN

P23085 – DEEPIKA S K
Innovation, Uncertainty, and the Game of Skill: Dream11's Strategic Dilemma

Dream11, India's leading fantasy sports platform, stands at the crossroads of innovation and
regulation. Its meteoric rise, transforming the way fans engage with sports, has been accompanied by
a persistent legal dilemma regarding its classification as a "game of skill" versus a form of gambling.
Critics and users alike perceive Dream11 as more of a gambling game, and there is a need for the
platform to effectively convey that it is not. A strategic communication plan is required to convince
both critics and users of Dream11's distinction from traditional gambling. As Vikram Singh, CEO of
Dream11 meticulously reviewed reports and legal briefs, he knew that this was more than a mere legal
matter—it was a strategic crossroads that could redefine Dream11's brand, market positioning, and
future prospects. Critics and users, fuelled by the perception of Dream11 as a gambling platform,
needed to be convinced otherwise.

The Rise of Dream11 and the Fantasy Sports Revolution

In the heart of India's burgeoning sports and technology landscape, a revolutionary force emerged in
2012, transforming the way fans interacted with their favourite sports. Dream11, the brainchild of
Harsh Jain and Bhavit Seth (Exhibit 1), pioneered the concept of fantasy sports, allowing users to
create virtual teams of real-life athletes and compete with others based on their performance.

Dream11's meteoric rise can be attributed to its ability to tap into the passion and engagement of
sports fans, providing them with a platform to actively participate in the sporting spectacle. The
platform's user-friendly interface, comprehensive sports coverage, and innovative features quickly
garnered widespread appeal, making it a household name in India.

Originally, Dream11 operated as an ad-based free-for-all sports app, fostering communities where
users could discuss sports, read blogs, and engage in fantasy leagues across various sports seasons.
However, this initial model proved to be unsustainable.

Subsequently, the platform underwent a strategic shift, focusing on daily matches and introducing the
option for users to wager money on their chosen teams. In the revised model, Dream11 users select a
team from the list of participating players before a match begins. Points are allocated based on
individual player performances during the game, and at the conclusion, team rankings are determined
among participants. (Exhibit 2)

For users engaging in games with monetary stakes, funds are pooled collectively, and winnings are
distributed based on individual rankings, with a nominal service charge applied. This shift to a pay-to-
play model proved to be a game-changer for Dream11, propelling it to become one of India's most
popular sports engagement platforms.
Since then, Dream11 has emerged as a juggernaut in the Indian sports fantasy landscape, capturing the
hearts of over 140 million users as of 2021. Its meteoric rise has catapulted it into the coveted unicorn
club, making it a rare gem among consumer-focused startups that have successfully turned a profit.
The company’s sales have already surpassed Rs 3,800 crore (Exhibit 3).

Industry Background: Evolution of Online Gaming in India

India's online gaming industry is a dynamic and evolving landscape, with fantasy sports carving a
significant niche. The Indian digital gaming landscape has undergone a remarkable transformation,
witnessing several inflection points that have fueled growth in new users, user spending, and
ecosystem development.

Emergence of Digital Gaming (Early 2000s)

India's digital gaming market made its debut in the mid-2000s, between 2005 and 2010, as
advancements in hardware enabled the development of sophisticated mobile games like Bounce and
Prince of Persia. The following five years saw the early adoption of game downloads on phones,
particularly with the rise of Android.

Experimentation and Monetization

The entry of Jio in 2016 revolutionized the Indian telecommunications sector, providing affordable
data access that encouraged gamers to explore, download, and play more games on their mobile
devices. This surge in gaming activity led to an increase in game downloads and online gaming.
Additionally, the development of digital payment infrastructure, such as UPI, facilitated easier
payment options, boosting the monetization of online gaming platforms. The COVID-19 pandemic
further fueled the growth of online gaming as users sought alternative forms of entertainment. This
period also witnessed the emergence of new gaming formats, such as social/community gaming.

Digital Immersive Era (Post-2020)

Looking ahead, Web3.0 technologies, particularly the metaverse, are poised to revolutionize the way
the internet and online gaming are consumed. These technologies aim to create a more secure,
decentralized internet with an immersive user experience. India's evolving gaming market is driven by
an entrepreneurial ecosystem characterized by aggressive, young companies with rapid growth
trajectories.

COVID-19 has played a major role in increasing the average time spent by online gamers across the
countries. India witnessed a high growth of 47% between 2020 and 2022 when compared to that of
other major countries as the average time spent on internet gaming in India has gradually increased.
According to Redseer Analysis, India's gaming market experienced significant growth in FY2021,
with a valuation of Rs 149,000–150,000 Mn. This growth continued into FY2022, with the market
reaching a valuation of Rs 201,000-202,000 Mn. The industry is expected to grow at a CAGR of 32%
and reach Rs 600,000 - 630,000 Mn at the end of FY2026.

The expected expansion of the online gaming can be attributed to favourable macro-economic factors.
These include the widespread use of smartphones, increased internet accessibility in various regions
of India, including remote areas, and the growing acceptance of digital payment methods such as the
United Payments Interface and digital wallets.

Over the last five years, the Indian internet user base has consistently grown from approximately 300
Mn users in 2016 to nearly 720 Mn users in 2022. This growth is further propelled by the decrease in
the average selling price of smartphones, making them more accessible, especially in rural areas.
Additionally, the rising popularity among users in rural and vernacular segments has significantly
contributed to the increased penetration of smartphones.

Competitor Analysis

The Indian Premier League (IPL) 2023 has propelled fantasy sports platforms like Dream11, MPL,
WinZO Games24x7's My11Circle, and MyTeam11 into the limelight, making them virtually
inescapable in the daily lives of sports enthusiasts. This increased visibility has ignited a fierce
competition in the fantasy sports arena, with each platform vying for user attention and market
dominance.

Amidst this intense rivalry, Dream11 stands as a frontrunner, having secured a significant portion of
the fantasy sports market share. However, the emergence of these formidable competitors poses a
significant challenge to Dream11's position in the industry.

Dream11, one of the main sponsors of the IPL, capitalized on the league's immense popularity,
achieving a remarkable 56% surge in revenue during the 2022 season compared to 2021. Similarly,
Games24X7's My11Circle, another prominent IPL sponsor, also experienced a significant revenue
boost, registering a 30% increase during the 2022 season.

Dream11 has emerged as a frontrunner, consistently demonstrating its marketing prowess and
financial stability amidst fierce competition. While its rivals, Games24X7 and MPL, have faced
financial setbacks, Dream11 has maintained profitability, highlighting its ability to effectively
navigate the challenges of the market.

Dream11's success can be attributed to its strategic marketing initiatives, such as the high-profile ad
campaigns featuring Indian cricket legends and celebrities. These campaigns have played a crucial
role in expanding Dream11's brand recognition and attracting a wider user base.
In contrast, Games24X7's My11Circle and MPL have struggled to match Dream11's financial
performance. My11Circle, despite its sponsorship of the Lucknow SuperGiants IPL team, incurred
significant losses in FY22. Similarly, MPL experienced a substantial increase in its losses over the
same period.

Marketing Mix and Success Factors

Dream11's remarkable success in the fantasy sports industry can be attributed to its well-crafted
marketing mix, a combination of effective brand messaging, nostalgic taglines, strategic partnerships,
and user-centric promotions.

Nostalgic Taglines: Evoking Emotional Connections

Dream11's marketing campaigns tap into the deep emotional connection that sports fans have with
their favorite sports. By evoking nostalgic memories and reinforcing the role of sports in people's
lives, Dream11 creates a sense of relatability and engagement with its target audience.

Strategic Partnerships: Leveraging Celebrity Endorsements

Dream11's association with renowned sports personalities like MS Dhoni has proven to be a powerful
marketing strategy. Dhoni's immense popularity and credibility among sports fans have helped
Dream11 enhance its brand reputation and reach a wider audience.

Leveraging Major Sporting Events: IPL Sponsorship

Dream11's strategic partnership with the Indian Premier League (IPL) has provided significant
exposure and brand visibility. By aligning itself with this immensely popular sporting event, Dream11
has capitalized on the IPL's massive fan base, expanding its reach and brand awareness.

Boardroom Dilemma: Addressing Legal Ambiguity

The imposing oak doors of Dream11's boardroom swung open, revealing a scene of intense
concentration. At the head of the table sat Vikram Singh, his brow furrowed in thought. Around him,
the board members, a group of seasoned industry veterans, listened intently as Singh laid out the
challenges facing their company.

"We've built a remarkable company," Singh began, addressing the board. "Dream11 has
revolutionized the way sports fans engage with their favourite teams and players.”

Singh paused, letting his words sink in. The board members exchanged glances, their faces etched
with a mix of anticipation and concern. They knew that this was a critical moment for Dream11, a
company that had soared to prominence in the Indian fantasy sports industry.
"The legal ambiguity surrounding our classification as a 'game of skill' versus a form of gambling has
cast a shadow over our operations," Singh continued. "We've faced legal challenges, marketing
restrictions, and a constant cloud of uncertainty."

The board members nodded in agreement. They had witnessed firsthand the impact of this dilemma,
the way it had stifled Dream11's growth and hindered its ability to fully capitalize on its potential.

"We cannot ignore this issue any longer," Singh declared, his voice firm with resolve. "We need to
find a solution, a way to address the concerns of our critics while staying true to our core principles as
a platform that promotes skill, strategy, and knowledge." (Exhibit 4)

Singh knew that the fate of Dream11 rested on his shoulders. He had to find a way to convince not
just the critics but also the millions of passionate Dream11 users that the platform was not a gateway
to gambling addiction.
 Exhibit 1: Organization structure of Dream 11

Exhibit 2: UI/UX Design of Dream 11 Exhibit 3: Financial Analysis of Dream 11

Exhibit 4: Organization structure of Dream 11