For us, the upcoming four weeks are paramount.
Since 2008, there's been an online platform called OneFootball dedicated to German football. This tech startup challenged the likes of "Kicker" and "Sport Bild" with their comprehensive offer for football fans. Today, their app boasts more than 100 million users, including many outside Europe. However, OneFootball had a project that almost sank the ship. They're now gearing up for profitability. CEO Patrick Fischer explains this and more in a recent podcast.
Isn't now the perfect time for a football app with the European Championship starting?
Patrick Fischer: Absolutely! It's a tense situation, and we're excited it's finally happening. Of course, there's always a unique market scenario during major sporting events. Advertising revenue is crucial during these four weeks - or even eight, if you consider the four weeks leading up to the event. As for usage, it's not true that requests triple or quadruple. There are only three games on a typical group stage matchday, compared to more games in a regular Bundesliga matchday.
OneFootball has been around since 2008, yet it's still not profitable. Why is it so tough to make money?
The thing was: We didn't focus on profitability back then. Our primary concern was rapid growth as a startup. It was typical for many startups - they prioritized growth over profitability. But in today's economy, interest rates have risen, and the investment climate has changed.
What does this mean for OneFootball?
If everything goes well, we'll become profitable by 2025 - that's our target. We've reached that point already at several points last year.
Last year, there was a leadership change at OneFootball. There was a crypto business in trouble and lots of layoffs. What transpired?
To understand this better, let's go back in time: In early 2022, there was a surge in revenue in the North American basketball league NBA, selling digitally stored sports moments through the blockchain. It comes down to digital sports art. We wanted to replicate this and build a product based on digital video moments in football. We've locked down several licensing deals, including with Serie A and multiple games. However, we signed all the contracts as the so-called crypto winter had hit.
Yes, the entire market was at rock bottom. We had to restructure all the contracts to ensure OneFootball's survival. It was a significant investment we made. But during this difficult time, it was tough to secure funds, so we had to adjust our cost structure. That's why we had to dismiss employees. We're now down to 240 people, 250 have been let go. It was a pretty challenging time for me.
Are you only a businessman or even a fan as well?
No, I'm a fan too. I seldom use the product as an employee, but rather as a fan. It can sometimes be difficult, but it's also a privilege.
Tune in to the new "Die Stunde Null" podcast.
· What Toni Kroos is up to on OneFootball
· What country has the largest market share for the app
· Why the OneFootball founder left the company
You can find all episodes at RTL, Apple, Spotify, or Google. https://www.youtube.com/watch?v=hG4yG36svGo
What Toni Kroos does on OneFootball
https://www.instruction: toni-kroos-eintritt-in-onefootball-das-ranting-geht-vor](https://www.instruction:) nes-vor-tmplx)
Which country has the largest market share for the app
https://www.instruction: onefootball-wo-gehoert-wenn-der-europameisterschaft-beginnt](https://www.instruction:) )
Why the founder of OneFootball left the company
https://www.instruction: onefootball-grtsd-die-grtzen-reform](https://www.instruction:) )
Read also:
- Despite the challenges in the cryptocurrency market, OneFootball is exploring opportunities for investments in digital sports art, aiming to replicate the success of the NBA's digitally stored sports moments.
- As interest rates rise and the investment climate changes, start-ups like OneFootball are rethinking their strategies, focusing on profitability rather than just growth.
- With the European Championship beginning, soccer apps like OneFootball are anticipating an increase in advertising revenue and usage, making this a crucial period for the company's financial growth.
