Vivid Entertainment, one of the best-known porn production companies on the planet, is throwing its hat into the daily fantasy sports business.

According to a number of published reports, Vivid will be launching Vivid Sports 4 Money, sometime next week. The site is a joint venture with DraftDay Gaming Group and will offer a slate of traditional DFS games.

To the casual observer, this might seem like an absolutely atrocious time to be launching a new daily fantasy sports site.

After all, the industry is bombarded on a near daily basis with news of new states that are banning DFS; new class action lawsuits from disgruntled players; and plummeting corporate value.

Casual observers might also wonder why Vivid would want to enter a market that’s both collapsing and completely dominated by two companies, DraftKings and Fan Duel? The two sites control a full 90% of the daily fantasy sports market.

Vivid, as it turns out, has an answer to all those questions, acquisition costs. In an interview with Bloomberg.com, DraftDay President Nic Sulsk shed some light on the subject saying:

The business model of classic daily fantasy is unsustainable — the cost of user acquisition is just astronomical.

Sulsk goes on to point out that porn sites generally only spend about $50 per new customer acquisition, whereas the DFS bigwigs spent more than $200 million on advertising to pick up new customers with mixed results.

Vivid co-owner Bill Asher makes an even simpler point, telling Bloomberg, “Fantasy sports and naked girls have a lot in common,They’re very popular with a certain segment.”

Using that logic, Vivid Sports 4 Money should be a very big hit.


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