Over the past two or three years, the eSports market has become one of the most vibrant ones – the number and size of mergers and acquisitions have increased significantly. The system of the e-sports world includes a lot of subjects with their functions and interests.
First of all, of course, the industry starts with game developers and publishers. The next level is eSports teams and eSports tournament organizers – there are currently over 30 different leagues and tournaments. Next comes the media, including streaming platforms on which broadcasts take place, various services and applications, betting and gambling resources, regulators and public organizations, federations – and, of course, viewers.
Global Audience and Sponsorship Bonanza
Every year, eSports gains more and more fans. Virtual arenas are filled with thousands of fans, and online broadcasts collect millions of views. The global eSports audience has already exceeded 300 million people, and the market for this sport amounts to more than $1 billion.
None of this would have been possible without financial support. Consider who sponsors esports and why:
Companies like Intel and NVIDIA have long been pillars of the esports community. Their interest is simple: the popularization of e-sports is directly related to the growth of sales of their products.
Coca-Cola, Mercedes-Benz, Red Bull are just some of the brands that have been heavily investing in esports in recent years. The younger generation, passionate about eSports, is becoming the target audience for these brands.
Twitch, YouTube, and Facebook regularly sign exclusive contracts to broadcast major esports tournaments. They make money from advertising and premium subscriptions, betting on attracting a young audience.
Adidas, Puma, and Nike have started releasing esports apparel and accessories. Collaborations with famous teams and players help them attract new audiences and expand their presence in this direction.
Esports Betting Sites
Esports betting is becoming increasingly popular, with sites that specialize in it investing heavily in sponsoring tournaments, teams, and even individual players. It has long ceased to be just a leisure activity for teenagers.
It’s a multi-billion dollar business that attracts the attention of some of the world’s biggest brands.
Media Rights and Broadcasting Deals
Certain areas of corporate, contract, investment, and media law are associated with e-sports. Game development companies are objectively stronger than gamers, so they, as the owners of intellectual rights to games, set the rules for using these games.
To host any eSports tournament, the organizer must sign a licensing agreement with the game development studio and obtain permission to use the game for broadcast purposes. Such a license to broadcast a game is necessary because using intellectual property without the permission of its author is illegal.
The main legal instrument of eSports is a contract. Agreements regulate both media rights in esports (a license agreement is, first of all, a contract) and relations with esports players. A high-quality and well-drafted contract with a player is a reliable guarantee that the esports player will fulfill his obligations.
Growth of Merchandising and Branding
The field of gaming is very popular today. Therefore, there is a need for game marketing. At the promotion stage, many difficulties are encountered – competitors and changing market conditions. Only specialists can ensure effective promotion of the game.
A logo is only one of many components of a brand. It makes the eSports team recognizable, supports the intended image, and gives a message to the audience. With proper logo development, the club gets its audience, which will not leave after an outstanding player leaves the eSports team. It is worth noting that the development of e-sports is moving at a rapid pace, and some clubs have become real brands, created a solid image, and become recognizable all over the world.
The name and logo of an esports team are important components of the club’s image, so to develop them, it is recommended to involve professional marketers and designers who can subtly and gracefully present the team on the world stage.
Personal Branding for Esports Athletes
With the growth of the eSports industry, there are many opportunities for aspiring professional gamers, coaches, analysts, and other positions in the competitive gaming scene. In the competitive world of esports, your brand can set you apart from the competition. Collaborating with other gamers and influencers will expand your network and reach. Attending gaming conventions and events will also help you network with industry professionals and potential sponsors.
In the most general sense, a brand is a stable image of a manufacturer or its product. People brands are no exception – a personal brand can be defined as the image of a specific person converted into physical or symbolic capital. We are well aware of such examples from classical sports – Michael Jordan and Cristiano Ronaldo. To successfully create a personal brand, you need to start by performing well as part of a team. Fans love winners.
Also, e-sportsmen often increase their income by playing in online casinos such as https://casinosanalyzer.co.nz/online-casinos/new-zealand-dollar-nzd. They play them on streams and collect jackpots.
The Betting Boom
Betting on eSports, like any other sport, not only requires knowledge and data analysis but also involves managing emotions and making rational decisions. Rational decision-making is key when betting on eSports. This includes analysis of data, statistics, past performance, and other objective factors.
The types of eSports bets for virtual football and basketball matches are the same as for real competitions. You can try to guess the main outcome, the exact score, the result with a total or a handicap, the authors of the goals scored, etc. In other live e-sports games, general sports knowledge will not be enough.
Before making eSports predictions, you need to carefully study the opponents. Team compositions often change, and the departure of one player can radically change the overall picture. In addition to the qualifications of gamers, teamwork and the current form of the team are of great importance. The main disadvantage of betting for players is that the margin that bookmakers set for eSports is often too high. The advantages include the availability of statistics and broadcasts.
Investment and Franchise Models
Nowadays, eSports has gone from being just a hobby to becoming a full-fledged business in the field of IT development and the gaming industry. In China and the USA – the largest eSports markets – entire companies in the field of VR technologies, graphics, PC production, and gadgets are working on the development of this area.
In addition to the technology companies that traditionally invest in it, eSports also attracts billionaires. Year after year, analysts give extremely positive forecasts to the eSports industry, predicting constant market growth.
There are quite a few business models in eSports today:
- The simplest and most understandable in terms of income is the launch of a cyber arena. A cyber arena is a place where you can rent a computer, just play or practice, and take part in a tournament.
- Esports school. It will be more expensive and a little more risky to launch a school for players who dream of repeating the dizzying careers of e-sportsmen from the first league.
- Own team. You can assemble and train your team, which will subsequently be able to participate in international tournaments and win serious prize money.
- Other. Other common types of business include launching their tournaments and leagues, developing IT services for fans, players, coaches, bookmakers, cyber journalists, and media support for teams.
It is important to note that the eSports audience consists of solvent people who can afford to buy the game and use the in-game store to further “pump up” their characters.