Five eSports Startups You Should Know About

The year 2015 has featured a wave of VC funding for several new eSports companies. While headliners such as AlphaDraft, Vulcun, and Unikrn have attracted notable rounds of funding and a good deal of media coverage; they are not alone. Below is a list of five eSports startups to watch in 2015. Note: this list was inspired by Blake Robbin’s aside on eSports, found here.

Streaming from anywhere

Thanks to streaming technologies, gaming is social and interactive; in the form of a shareable experience that transcends physical location. The eSports owes its growth to a generation of live streams that connect enthusiasts to the games, people and content they love. However, streaming has traditionally been tethered to the desktop. Now, two companies, Mobcrush & Kamcord, aim to bring it to mobile. Both seek to do for mobile, what platforms like Twitch did for PC and console gaming. This could shape into a huge boost for mobile game developers in the form of mobile eSports titles.

Mobcrush is a mobile video streaming company that enables its users to broadcast, watch and chat about games played and streamed in real-time. Currently in beta, the company has attracted funding $4.9 million in funding. Mobcrush takes a community-based, content focused approach similar to Twitch. The company’s growth will be heavily influenced by the market for mobile video advertising over the near term and the traction of mobile micro transactions moving forward.

Kamcord has roots as developer that provides studios with a seamless video-recording solution for their games. They were founded in 2012 and have attracted $24.8 million over five rounds of VC funding since then. The most recent was a sizable $15 million in December 2014. Kamcord is already a leading solution for mobile gameplay sharing through a software development kit (SDK); providing more depth to their business model than just an app developer.

eSports for everyone

The wildly popular Minecraft is already powering startups from within its ecosystem. One of which is Kickback, termed “the easiest way to play Minecraft competitively,” is one such example. The Sunnyvale, CA based startup has garnered funding in the low six figures and is banking that there is substantial market for competitive Minecraft. Kickback’s focus is essentially “amateur” eSports for cash prizes and bragging rights. Minecraft is not only a gateway to gaming for an entire generation of pre-pubescent children but also a hobby for adults, so the user base is there. However, it sits in an increasingly crowded “eSports for everyone” space. It’s also possible that the “play for [small] cash prize” model will fit mobile better; with its ephemeral user interactions and more simplistic games (see: Skillz and CashPlay)

Climbing Mt. Everest
The immense potential in the eSports industry is only eclipsed by the challenges navigating it. More people than ever are aware of eSports, but few understand how to connect/engage.  Waypoint Media strives to solve that through a unique combination of technical tools and services. Based in NYC, the nearly two year old company is focused on powering the first digital marketplace that connects brands with eSports and Gaming content creators.

Waypoint boasts a leadership team experienced across tech and consulting worlds.  This strong professional background will be paramount in an emergent and, still, maturing eSports industry. In fact, one of Waypoint’s biggest challenges today might be educating potential customers about the possibilities to be had in eSports. Most non-endemics have read the numbers and heard the stories, but will need to know what else they don’t know first.

A mobile experience gone missing

It is both amazing and puzzling that, up until release of The Score’s eSports app in the first quarter of 2015, eSports fans did not have a dedicated mobile experience. And now, a new entrant, Instant eSports, has emerged. Billed as the best mobile experience for eSports fans, the app has lived up to expectations since its release in June 2015.

The company, founded and run by a handful of UC Berkeley eSports enthusiasts, adheres strictly to a “for the fans, by the fans” approach. They understand eSports always has been, and always will be, about the community. Accordingly, product development is framed by the needs of its users, first and foremost. For example, the app is the first and only to support real-time scoring AND stat updates for LCS matches; a feature fans have long clamored for.

However, the market for mobile apps is crowded and highly competitive. Instant eSports must continue to clearly execute their user-oriented vision or risk being drowned out. However, if the team can successfully expand across other eSport titles, without sacrificing its strengths, the future is bright.

The Way Forward

The year 2015 will go down in history as an inflection point for the eSports industry. The trajectory of these startups will vet eSports business models and shape the course of VC funding moving forward. Their progress provides a good pulse on where the industry is moving and is worth keeping tabs on.

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Alex Fletcher finds and recruits top talent in the eSports world – by working with and nurturing the next generation of rising stars. Visit Entiva Group for more info. When he isn’t glued to a screen, he spends time with his wife, their two dogs, and pretends to learn Polish.

How eSports Can Rescue ESPN

ESPN’s decision not to renew the contract of Colin Cowherd, eSports public enemy #1, was not a surprise to anyone keeping tabs on the company’s current malaise. The Bristol-based sports media giant has chosen not to renew the contracts of several key on-air personalities while also suffering the losses of its top two executives, Sean Bratches and David Preschlack. Flagging subscription numbers — 92.94 million last month, down more than 7 million homes from a high of 100.18 million homes in May 2011, only add insult to injury. The sports programming behemoth is beset by attacks from competitors, both established and new; while facing questions stemming from consumer affordability for pay TV. Needless to say, ESPN is in transition. In order to stem the tide, the company must innovate around keeping as many people in the overall content ecosystem as possible. The solution is to embrace eSports.

Bigger pond, smaller fish

The bottom line for ESPN is the market for content programming has grown. Competitors like Verizon and AT&T U-verse are serious players in the multichannel video programming distributor (MVPD) market. The winners will find new methods of getting content out to consumers. And more than anything else, eSports is a great platform for doing just that. ESPN can no longer consider itself the center of its own universe. Instead it will have to tap into other domains and avenues that stray from the traditional TV paradigm. The network has shown openness to eSports, but it’s still beholden to the model of airing content TV and leaving it at that.

ESPN must participate in the evolution of the content availability business or risk a continually eroding market share. The current era of mobile connectivity is driving greater consumer choices. The challenge for “The Worldwide Leader in Sports” is to deliver high-quality content to consumers in new, compelling ways. On a positive note, there are several ways for the sports network to strengthen their position through eSports:

• Financial investment – the eSports industry is growing, but still immature. Purchasing stakes in mainstays would be a cost effective method of aligning with growth early. See: ESPN’s stake in Hulu
• Cultural involvement – see: ESPN’s success with the X games. The cultural significance of competitive gaming will be even larger over the next 5 to 10 years. Approach eSports from its cultural roots. Grantland, an ESPN outlet, is the perfect outlet to begin experimentation.
• Enable partnerships – ESPN has the credibility to help bridge the traditional sports world with its digital counterpart and share in reaping the benefits.

The case of a disappearing generation

The next generation of children will grow up playing eSports, and there’s absolutely nothing ESPN or anyone else can do to change that fact. Meanwhile, TV and ad execs, alike, are lamenting the difficulty of connecting with millennials. However, the solution to reaching this demographic isn’t found in eSports by itself; instead, it’s in taking time to understand what makes eSports so appealing. Asking the right questions is critical: Why are eSports fans and viewers so engaged? What has kept the community self-sustaining for so long? How is the eSports experience such a global phenomenon without corporate $$$? These answers are a mirror through which ESPN can honestly view its own flaws and how to address them.

Getting ahead of the curve

The window of opportunity is now for ESPN. Today is a good time for a transition. Five years from now, the payoff of catching eSports momentum on its upswing, will be tremendous. Whatever current costs/risks exist will be crushed by the prospect of being on the wrong side of the adoption bell curve. Yet, there’s still a lot of work to be done. eSports is more wild wilderness than Shangri-La, and that’s the point. ESPN can ill afford to miss a coming golden age, especially as its own seems to be waning.

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Alex Fletcher finds and recruits top talent in the eSports world – by working with and nurturing the next generation of rising stars. Visit Entiva Group for more info. When he isn’t glued to a screen, he spends time with his wife, their two dogs, and pretends to learn Polish.

Exhibition Basketball is Still More Marketable than eSports

For fans of professional basketball, summertime is traditionally a dead spot. Training camps don’t start until early fall, followed by the regular season. However, the National Basketball Association (NBA) has figured out a clever workaround: televising its league-wide summer league games. The catch is, these games don’t feature superstars, like Lebron James or Kevin Durant, instead they are full of recently drafted rookies, undrafted free agents and other assortments of NBA hopefuls. In other words, the level of basketball is far from NBA quality. However, this hasn’t stopped huge global brands like Samsung (official sponsor) from buying in, nor impressive attendance numbers and TV ratings from piling up. Success of the NBA Summer League is a testimony to the value of sport product; a concept badly needed in the eSports arena.

It takes a league to create a product

Modern-day sport is no longer, simply, a competitive activity with aesthetic spectator appeal. It is also an immensely popular entertainment/media experience and reliable vehicle for corporate promotion, e.g. marketing. This did not occur overnight. The formation and evolution of sport as a product has facilitated sky-rocketing values of professional sport properties; to the extent that competitive play between the actual players/teams is only a piece of the puzzle. Case in point is the NBA’s success in transforming a series of exhibition games, featuring a vastly inferior level of play and talent, into a notable media property. Basically, the league’s refined ability to polish, package and deliver covers a multitude of sins.

Up to this point, comparison between traditional sports and eSports has centered around whether competitive gaming is a form of athletics. However, the largest chasm between the two lies in the role of traditional sport and eSport leagues themselves. Contrary to popular belief, the most important responsibility of a league like the NBA, has nothing to do with what occurs on the court. Instead it is as sole proprietor of the NBA product. The crucial flow of sponsorship money, endorsements and media opportunities are sustained by the existence of a stable, league-wide product.

Individual teams and organizations thrive or wither based on the strength of this product. In fact, one could argue that this is the role of an association like the NBA. Yet game developers like Riot Games (creator of League of Legends), who maintain stewardship of eSport leagues today, maintain no such parallel. While understandable, developers have been thrust into this position by the meteoric explosion of eSports, they must adapt or risk falling by the wayside of a fast changing landscape.

Star power matters

A product can’t exist without a spokesperson to sell it and, in the case of sports, it starts (and ends) with the players. As sport properties have increased in value, so has the value of players who maintain their collective luster. Players are the ambassadors for the league wide product. The same holds in eSports. As a result, the plight of pro players must be granted more priority; not simply as a moral stance but as a business decision.

When ESPN The Magazine featured eSports in an issue last month, the spotlight was cast, not on a team or coach or organization, but on League of Legends superstar, Faker. As a grandfather of sports media, ESPN understands how important the best and brightest players are to the nature of a competitive activity. A complete eSports product depends on a class of superstars who are elevated the forefront of the scene. Their stories, career moments and personas must serve as fuel for the fire of an entire industry.

Give the fans what they want

The NBA’s Summer League found a niche (no televised basketball during the summer months) and filled it. eSports has done an incredible job of engaging an entire global community of fans and viewers, but must continue to fill its own gaps. One such area is mobile. Fans want more than apps, they clamor for a better integrated mobile experience featuring media, content and user interactions; create that and more opportunities to convert customers will emerge. Unfortunately, an unclear eSport product picture prevents this type of customer formula from forming. Still, what’s in it for stewards of already popular eSport leagues? How does strategic focus on an eSport product benefit their bottom line? The answer: over the several business quarters, not much. Over the next 2-3 years, as eSports continues to rise as global phenomenon, it will mean millions in opportunity loss.

The future is now

Game developers must accept their changing role not only as caretakers of game titles and franchises, but also as owners of respective eSport products. This is not a simple transition. Companies like Valve and Riot are, at their core, software companies. Yes, they live and breathe gaming but the marketing and media aspects of growing an eSport product doesn’t clearly overlap. And to treat eSports as just competitive gaming misses the generational opportunity it represents as global shift in, not only how we play games but, the consumption of entertainment in the years to come. Essentially, if today’s eSports leaders refuse to learn from the models present in the traditional sports world, they risk becoming tomorrow’s footnote.

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Alex Fletcher finds and recruits top talent in the eSports world – by working with and nurturing the next generation of rising stars. Visit Entiva Group for more info. When he isn’t glued to a screen, he spends time with his wife, their two dogs, and pretends to learn Polish.

Top Three Reasons Your Kids Will Play eSports

The growth of eSports, as a cultural movement, continues this summer, with startup Super League Gaming’s partnership with the three largest movie theater chains in the USA. Summer 2015 will feature the world’s most popular game, Minecraft, in over one third of the country, with plans to expand to Canada and China in the fall of this year. More importantly, it marks a key landmark in the convergence of gaming and media; providing further proof that eSports is fast changing how youth consume media and entertainment.

#1 – eSports is the new face of digital entertainment

Today, more and more children are gaming, and are doing it more than just casually. However, the growth of competitive gaming has added a wrinkle to the “kid-friendly” notion of playing games. eSports, with its combination of competition, teamwork (where applicable) and social elements, is pushing gaming from a typically solitary form of entertainment to a shared, interactive experience. The explosion of internet capable devices has connected the gaming universe and brought eSports to its forefront. With a focus on the social aspect, eSports has given way to a generation of youth who are also willing spectators of gaming events.

eSports is attracting more viewers worldwide than most professional sports leagues; giiving rise to a new generation of “digital athletics.” Features like lower barriers to entry (accessible to anyone with device and internet connection) and less focus on immutable physical traits (height, weight, athleticism, etc.) resonates with youth across the globe. As a new genre, eSports isn’t a birthright, nor a cultural artifact. Instead, it is becoming the new face of digital entertainment.

#2 – Online comes alive

The 90’s dot-com boom birthed the debate between online vs “brick and mortar,” which continues to rage on today. And while online communities have existed since the inception of a publicly available Internet, very few have made their way into physical spaces. eSports is changing that, in a hurry. From eSports bars, where patrons gather to socialize and watch matches, to dedicated venues, where fans attend tournaments featuring pro teams, there is an increasing number of offline locations where online communities can meet face-to-face. Super League Gaming’s partnership not only guarantees this number will grow, but that the next generation will consider it the “new normal.”

#3 – Passive entertainment is dead

The integration of game concepts into non game related spaces, a.k.a gamification, has already taken hold. Gamification is also causing a shift in how entertainment is delivered. Younger generations want participatory experiences. Sitting in a dark room with strangers, watching a movie for 2+ hours preceded by 20 minutes of trailers, is fast losing appeal. Children are faced with almost limitless options vying for their attention. Passive experiences aren’t cutting it anymore. Youth want to be engaged. They crave experiences that enrapture and can be shared with their close and wider social networks. eSports provides that “stickiness,” in a nutshell.

Why you should care

The entertainment and media landscapes are evolving. It’s no small coincidence that the three largest movie theater chains are lined up to partner with Super League Gaming. Cinemark, Regal and AMC aren’t just betting that eSports will be big; they’re showing great business sense by aligning with an undeniable cultural trend. After all, if you want to find out what’s cool, ask the kids.

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Alex Fletcher finds and recruits top talent in the eSports world – by working with and nurturing the next generation of rising stars. Visit Entiva Group for more info. When he isn’t glued to a screen, he spends time with his wife, their two dogs, and pretends to learn Polish.

Understanding the Lucrative €Sport$ Performance Market

Not to beat a dead horse, but eSports is kind of a big deal. There is also a marketplace taking shape around this global phenomenon. Yet, outside of the clear overlap with gaming (eSports is a subset of the worldwide gaming market), it’s not evident what other opportunities exist. Well, one such opportunity is taking shape as eSports performance; and analogous to its sports performance cousin, it pertains to the training, preparation and instruction necessary to maximize performance in competitive gaming. So while the never-ending debate around whether it’s a sport or not continues to rage, there’s substantial opportunity to capitalize on the market for understanding/enabling success for the digital “athlete.”

No sweat, no problem

With a reduced emphasis on physical measurables, eSports places a premium on emotional/mental makeup. Top gaming pros don’t just sport superior reflexes and reaction times, they have what it takes to succeed from the head up. In a domain where change is inevitable, the ability to adjust, counter and think flexibly is imperative. For example, new patches are consistently released by developers forcing teams and individual players to adjust a new version of the game. These changes can create unexpected scenarios and gameplay strategies, literally overnight. Imagine the outcry from NBA players, if their league released a new change to its rule book, every three months or so! Well, this is par the course for eSport pros.

Accordingly the market for eSports performance cannot assume as much as its traditional sport counterparts. Products and services must adapt to the rapidly changing landscape of its target audience. Game titles are bound to rise and fall as eSport leaders, complicating stability but also creating new gaps to be filled. Over the near term, look for less physical equipment/offerings and more virtual environments where player mental/emotional state can be monitored and levels of performance evaluated. This is akin to measuring how high an athlete jumps, runs or moves to better hone training techniques.

Put me in coach

The most mature opportunity, professionalization of eSports coaching, is also perhaps the most critical. See here, for details on how the demands of eSports contribute to a short shelf life for its pro players. As a whole, there is no engine for the techniques and infrastructure key in developing coaches properly prepared to manage and coax the best out of pro players. Not to mention the void for research into the effect of coaching on player success and performance. Obviously, the need for coaching is magnified when dealing with team play, but still applies across the board for all eSports played at a professional level.

In either case, Understanding the game mechanics, strategy, etc. is only a small part of successful coaching. In traditional sports, there are well-defined career paths for coaches; one does not simply become a coach at the pro level without progressing through a development path. The same is necessary in eSports. Coaches must be prepared to deal, not only, with the game itself but the humans who compete on the digital playing field.

It’s not just for the pros

Today, eSports is commonly referred to as a monolithic entirety; a term used to encapsulate the entire domain of competitive gaming. However, just as all fútbol being played across the world is not the same (there are pro, semi-pro, recreational levels), similar distinctions exist for eSports. And for all the success leagues like Riot’s League of Legends Championship Series has attained, the potential market for non-pro (amateur) eSports is absolutely massive. Buoyed by the rapid acceptance of competitive gaming at the collegiate level, there is a fast expanding universe of tournaments, leagues and organizations competing outside the paid ranks of pros. And as the career path for pro players stabilizes, there will be more gamers seeking to enter those ranks.

This is fertile breeding ground for a market of enhancing the skills of everyday gamers, not just pros. While most will never reach the highest levels of eSports, the prospect of investing in skill development will be well worth it. A digital landscape and reduced emphasis on physicality will cast a wider net across the globe. Unlike traditional sports, which self-select for certain physical traits, eSports feature a more inclusive set of skill requirements. Even if very few people possess them at a level required to “go pro.”

Moving forward

The future market for eSports performance will be dictated by the research being done today. Without the case studies, scientific models and hard data, it will be very difficult to capture market share. Even if today’s indicators all point towards a huge opportunity. One way or the other, if eSports performance rivals anything close to traditional sports, it will represent a substantial shift across the world.

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Alex Fletcher finds and recruits top talent in the eSports world – by working with and nurturing the next generation of rising stars. Visit Entiva Group for more info. When he isn’t glued to a screen, he spends time with his wife, their two dogs, and pretends to learn Polish.

5 Hot Melee Free Agents To Watch

Excerpt from Entiva Group’s “eSports Talent Outlook, July 2015”

News that the Tempo Storm eSports organization signed two leading Super Smash Bros. Melee (SSBM) free agents, Westin “Westballz” Dennis and Jeffrey “Axe” Williamson, capped a recent run for the title’s pro gaming scene. A member of the Super Smash Bros. family, which includes brethren “Super Smash Bros. Brawl” and “Super Smash Bros. for Wii U”, SSBM has overcome notable challenges in evolving an eSports community.

Among its positives, SSBM eSports represents a fast growing genre with strong grassroots and vibrant amateur scene. The fast pace and precision-based gameplay attract a more nuanced crowd; while more casual players/spectators are drawn to the fun and easy-to-watch format inherited from its party scene roots. Appropriately, eSports organizations will do well to investigate the talent market for SSBM players.

The Story

The 2001 release of “Super Smash Bros. Melee“ on Nintendo Game Cube started a legacy that has survived the test of time.  The game was an instant success. Ranking as the highest-grossing game during the consoles’ lifespan and is still considered by many as the best entry in the series. An unexpected boon for Melee was the growth of tournament play. A huge number of players were playing the game competitively; effectively forging the foundation for today’s eSports community.

In March of 2008, Super Smash Bros. Brawl was released for the Nintendo Wii. While the sequel was billed to better its predecessors, it actually created a divide amongst fans of the game. Between issues like unreliable online play and the fact that Nintendo implemented drastic changes to curb competitive play, Brawl never matched Melee’s tournament success. The high-level play and precision simply went missing, and players of the game knew it. Still, the notion of a community divide still plagues the entire Smash Bros. series to this day.

The Smash Bros. Melee competitive scene, which kept a flame burning for the 14-year-old game, has been responsible for the huge push into the eSports spectrum.  Actually, Melee has been growing in popularity over the last couple years; even in light of last June’s release of “Super Smash Bros. for Wii U.” While the release of a new edition, does little to improve the prospects of Melee as an eSport and, underscores the inconsistent involvement/investment from Nintendo. It does not, dampen the prospect of opportunity.

The Free Agent Landscape

A recent surge in tournament and viewer numbers, coupled with big showings at top events such as the Evolution Championship Series (EVO), has resulted in numerous top eSports teams extending sponsorship to pro Melee Smashers in 2015. The list includes, but is not limited to:

• Counter Logic Gaming – Kevin “PewPewU” Toy
• Team Solo Mid – William “Leffen” Hjelte
• Team Liquid – Juan Manuel “Hungrybox” Debiedma & Kashan “Chillindude829” Khan

Clearly, the Melee eSports scene has gathered momentum and is ready for growth. In that light, forward-thinking eSports teams and organizations, looking to expand their rosters, should take notice of the following five free agents. Note – This list has been adapted from the original created by Pokemon64ism, a member of the Smash community:

Name	Region	Player Report	Social Media
David “KirbyKaze” MacDonald	Canada	· Ranked #1, Southern Ontario Melee Power Rankings · Eight top 8 placements in 2015 · Returning to 2010 – 2012 form	Twitter
Joey “Lucky” Aldama	SoCal(USA)	· Frequent teams partner with Mang0 · Ranked #2, SoCal Power Rankings · Performance indicators trending up · Exhibiting more consistency in 2015	Twitter Stream
McCain “MacD” LaVelle	SoCal(USA)	· Confident player with marketable social media persona · Seven top 10 placements in 2015 · Formerly apart of Team Curse	Twitter Stream
Mustafa “Ice” Akcakaya	Germany	· Strong international performer · Ranked #1, German Melee Power Rankings · Ranked #3 in Europe · Good profile across EU region	Twitter
Otto “SilentWolf” Bisno	Washington (USA)	· Ranked #1, Washington Power Rankings ·  Top 15 player in the world · Defeated CLG’s PewPewU, April2015 · Technically sound but flashy, crowd pleasing style	Twitter Stream

Opportunities Abound

Smash Brothers, as a series, has beaten the odds to succeed competitively; all in spite of its party game roots, varying releases and lack of investment by developers. Melee, the premier game in the series, also had its own share of struggles gaining respect. The turnaround began in 2012, when a small group of leading figures started a podcast to address improving the state of Melee for both players and spectators. The group begat, what is known today as, Melee It On Me (MIOM), which has powered the title’s eSports success story, and is at the heart of a growing community.

MIOM has effectively filled the void in competitive leadership across the Smash franchise. Few, if any, game title communities can match their history of strong leadership in the face of adversity, vision and results. Recent indications that Nintendo is investing in eSports, means Melee is primed for even better days ahead. Subsequently, eSports organizations and teams must take the Melee talent landscape into consideration, or risk missing an emergent opportunity.

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Alex Fletcher finds and recruits top talent in the eSports world – by working with and nurturing the next generation of rising stars. Visit Entiva Group for more info. When he isn’t glued to a screen, he spends time with his wife, their two dogs, and pretends to learn Polish.

Why eSports is the Biggest Opportunity for Sports Since TV

The rapidly converging worlds of traditional sports and eSports moved a little closer last week; as top Spanish basketball organization, Saski Baskonia, and Atlantis Esports joined forces to form Baskonia-Atlantis. As a pre-eminent powerhouse in the Liga ACB, El Baskonia is a Spanish professional basketball club who is no stranger to success. Baskonia advanced to the Euroleague Final Four in 2005, 2006, 2007, and 2008. The club boasts a proud history, featuring some of the most competitive teams in the world and is perennial candidate for Euroleague. In other words, they got game. This announcement, however, is less about basketball and more about the biggest growth opportunity for sports since TV: eSports.

The sports media conundrum

The advent of television has impacted the traditional sports industry as much or more than any other technical innovation. Modern TV took professional sports from regional-based networks of clubs/leagues to the global behemoth it is today. As a matter of fact, the lucrative business of sport would not exist without TV.

The sale of broadcasting and media rights is now the biggest source of revenue for most sports organizations, generating the funds needed to finance major sporting events, refurbish sports stadia, and contribute to the development of sport at grassroots level. (World Intellectual Property Organization)

The above is largely unknown by most, who consider revenue from tickets, jerseys (apparel), licensing, etc. as responsible for the skyrocketing values of sport properties. However, as media consumption patterns move away from the TV screen, and toward internet connected devices, modern sport organizations must evolve a business model tied, at the neck, to a rapidly aging platform.

To complicate matters, millennials are cutting off live televised content at a disproportionate rate. This leaves the traditional sports industry in a compromising position. TV remains their golden goose, but the ever valuable 18 – 35yr old demographic is drifting further and further away from it. The question sports media must answer is, what are those “eyeballs” fixed upon?

eSports as a platform

Enter eSports, with its massive global appeal among younger audiences, exponential growth rates and lack of brand saturation. Currently, most narrative has focused on how eSports stacks up against the traditional sports world. Or in terms of replicating what works in traditional sports, within the virtual domain of eSports. It has become the classic “Old versus New” dialogue which, unfortunately, obfuscates the biggest growth opportunity found in the merging of these two worlds. The move by Baskonia hints at how eSports can be leveraged as a lucrative platform within the traditional sports world. Here’s why forward thinking sports organizations must learn to embrace eSports counterparts, instead of write them off or consider them competitors:

• Young sports fans are gamers: The gaming generation is here. Embrace it or die. Whether traditional sport realizes it, the next wave of fans (consumers) is immersed in the culture of gaming. Not all are eSports fanatics but the overlap, between playing games yourself and viewing others play, is huge.
• Learn by contributing: Traditional sport brands who take the plunge into eSports, will gain invaluable access to insights on the very millennials they claim to clamor for. Insight that beats all the complex consumer polls, surveys by “experts”, and reports from the best consultancies money can buy. eSports lays bare to what works, and doesn’t, in today’s new media frontier. Today that cost is simply getting involved, as the eSports industry grows, the cost will grow with it.
• Ready-made global reach: The Baskonia-Atlantis partnership demonstrates how a successful team with a strong national brand can catapult its exposure across an entire global community. Thanks to the flatter, less developed eSports domain, Baskonia can accelerate the process of reaching across the entire globe. Quick quiz: Name another platform that can offer the same without significant barriers of entry.

Early movers, win

There is an old adage that says, being first is like showing up to a 10pm party at 3pm. In most things, it rarely pays off to be first. It’s much easier (and less risky) to justify an investment early on, than to be the very first. Accordingly, now is the time to capitalize on the ascendant eSports opportunity. The time isn’t when a shift has become a trend, because by then you’re stuck in the middle of the bell curve. The traditional sports industry would do well to invest in the eSports world as an opportunity to grow their interests. Much like buying stock in a company, once everyone is calling it hot, you’re too late.

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Alex Fletcher finds and recruits top talent in the eSports world – by working with and nurturing the next generation of rising stars. Visit Entiva Group for more info. When he isn’t glued to a screen, he spends time with his wife, their two dogs, and pretends to learn Polish.

eSports Industry Outlook: 7/1/2015

Here is cutting edge insight on the latest and greatest news from across the eSports industry. Stay tuned for more updates that help you stay atop of the trends and shifts that are shaping the marketplace:

Bridging the generational gap

The verdict is in: eSports is a leading platform for an entire generation. While competitive gaming is a viable media experience, can decision makers outside the space grasp the billion dollar implications of this generational shift? Specifically, can non-endemic stakeholders outside the eSports world successfully understand and connect with the culture? Early movers like Coke, Red Bull, Logitech, and Razer have taken the lead, but where does that leave those who will follow suite? Early signs of outside media convergence are beginning to appear. However, consolidation and acquisition only scratch the surface. To explore the full gamut, a concise evaluation of the opportunities, risks and current models related to this rapidly emerging opportunity must be executed.

Player/talent development in the pro scene must occur

The growth of eSports as a platform (see above) is driven, in a nutshell, by the quality of competitive play. Similar to how professional sports leagues must churn out the highest caliber of organization, team and individual player talent; eSports leagues must do the same. The path to become a pro gamer must be better defined and developed to allow the absolute best talent to emerge. Currently, the upfront investment outweighs the likely payoff; which isn’t viewed as a pressing issue today, but bodes ominously as the eSports industry grows. As is the case in traditional sports, the notion of “star power” will play an critical role in the growth of eSports leagues. Marketers, advertisers and companies alike will benefit from being able to attach to high performing players. Meaning, the career prospects in pro gaming must undergo a complete upgrade.

An entrepreneur’s dilemma
Investors and entrepreneur’s, alike, are taking notice of the eSports phenomenon. The consensus is there is very real potential in capitalizing on this “next big thing.” The reality is eSports is a largely nebulous term, which encapsulates the global competitive gaming community, in totality. There is a dizzying array of game titles, leagues, and organizations that comprise this global community. This leaves potential entrepreneurs, without a significant background in gaming, left out of the picture. Specifically there is no entry point or accelerator for seeding entrepreneurial activity; a reality that casts a shadow over the almost limitless potential for the eSports space.

Gambling and eSports: Where is the line?
With another betting company’s foray into the eSports domain, it’s appropriate to question how various leagues will handle similar business relationships. Riot Games’ League of Legends League Championship Series (LCS), arguably the most successful variety, has made it clear gambling affiliated companies are not permitted to sponsor participating teams:

3.7.1 Gambling Websites: defined as any website that aids or abets the wagering of funds on a sporting/esporting event and/or allows for the wagering of funds in casino games including poker

However, the legal waters are not as translucent with regards to ownership. In other words, it’s possible for betting companies to buy or create a team as long as the team doesn’t bear official name affiliation with the business; a loophole that raises eyebrows. If there is a conflict of interest from a sponsorship perspective, the same should apply for ownership. Riot is not explicit on their general definition of a conflict of interest, only who is not permitted to participate as a sponsor. If other leagues find success, while avoiding scandal, perhaps Riot will change their tune.

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Alex Fletcher finds and recruits top talent in the eSports world – by working with and nurturing the next generation of rising stars. Visit Entiva Group for more info. When he isn’t glued to a screen, he spends time with his wife, their two dogs, and pretends to learn Polish.

Only the Good Die Young: Fixing the Shelf Life of eSports Pros

eSports has emerged as a billion dollar tech trend in 2015 thanks, in great part, to continued growth and more mainstream awareness. However, several themes are crystal clear: industry maturity is being outpaced by overall growth, the debate on whether eSports is a sport still rages on, and equitable governance/oversight is badly needed. And while the larger issue of player rights dominates the discourse, issues like career longevity remain prominent. Factors like low pay, toxic team environments and team mismanagement affect the lifespan of pro gamers. Unfortunately, the eSports industry will only rise as high as the career prospects of its pro gamers.

Specifically, three areas must be addressed: professionalization of coaching, salaries, and amateurism.

Professionalization

The lack of professional associations, qualifications, credentials, etc. is not surprising given the relative infancy of the eSports industry. However, a tremendous growth rate and continuous increase in market size has exacerbated the lack of occupational structure. Functions such as coaching, team management and ownership are not guided by well formed guidelines or proscriptions. As a search and recruiting coordinator at Entiva Group, I’m privy to the gap between the required experience/skill of eSports coaches and the market for talent. Also, there are scant filters for separating the wheat from the chaff. The answer is to establish occupational closure, which is basically closing off a profession to unqualified parties. This requires resources for developing and qualifying professionals, which without such, there is no major sporting activity. eSports is no exception.

The recent fiasco involving Copenhagen Wolves coach, Karl “Dentist” Krey, reveals how disheveled today’s eSports coaching and team management practices can be. The need for institutions, which develop coaches, is patently clear when things go awry. Plus, given the relative youth of most coaches, its rare the critical skills and experiences have been obtained in other domains. A new venture, the eSport Coaching Network (ECN), is out to address the gap through training, live events and certifications. More similarly focused services and associations must emerge to raise the level of competency across the industry.

Salaries

See this past post on why player salaries are the rising tide which lifts all ships. The synopsis: a pro eSports team produces media (competitive play) consumed by fans and viewers alike; sponsors can then align their products with this media, apparel can be sold, and other business opportunities are made possible as a result. Product quality, in this case, is directly determined by player performance. Equitably paid players are less likely to experience economic uncertainty which can contribute to premature burnout and the higher turnover rates, which come along with it.

Amateurism

Currently, the notion of amateurism is gone missing from the eSports world. A loose definition of what a professional eSports athlete is, and isn’t, does not bode well for the overall health of pro gaming. A better definition of amateurism, and according organized systems of play, will reinforce a better flow of mature young adults into pro eSports. A college student debating whether to leave school and pursue a pro career should have the option of continuing his/her education without sacrificing skill development.

In North America, the NCAA offers the option of continuing education in parallel to developing as an athlete. For all its warts, the NCAA is the top player development system of play for NA professional teams in the major sports (basketball, baseball, American football). A similar approach is needed in eSports; where a formally recognized amateur division is available for future pros but also those who won’t progress to the professional level.

Success through Imitation

Addressing the plight of today’s eSports pros might seem contradictory as reports of fame, money and acclaim surface from more mainstream media outlets. The reality is, most pros will never see six figure incomes, endorsement deals, or significant streaming contracts. The three areas mentioned above exist in every major sport across the world, by design. Traditional sports have figured out that it pays to pay your players well. The same applies for eSports, where its continued emergence as a serious sporting activity, literally depends on it.

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Alex Fletcher finds and recruits top talent in the eSports world – by working with and nurturing the next generation of rising stars. Visit Entiva Group for more info. When he isn’t glued to a screen, he spends time with his wife, their two dogs, and pretends to learn Polish.

eSports Needs More Fans as Customers to Reach the Big Leagues

The explosive growth of eSports has taken the globe by storm in 2015, and the numbers don’t lie: More than 70 million people watch competitive gaming (eSports) across the globe. That’s a big figure, but one that obfuscates key nuances. Namely, the pockets of fans which are at the heart of the eSports movement. These fans are a goldmine, not only for advertisers, but also the organizations, teams and companies within the eSports ecosystem. In order for eSports to continue sustained growth, fans must also double as customers, similar to their role in traditional sports.

Taking a closer look at the dimensions of eSports fans/followers/viewers, it becomes clear the audience:

• is largely millennial and highly engaged
• shows no sign of slowing down (see graphic below, courtesy of Prashob Menon, REDEF)
• has yet to be monetized

According to a Newzoo report:

On a global scale, there are 2.2 billion sports fans who each generate an average of $56 per year. The average revenue for individual sports is anywhere from $20 upwards. Esports enthusiasts on the other hand, currently generate an average of $2.2 per person per year, without game revenues taken into account.

So the potential is significant, but the results are aren’t there. The fact that eSports’ core fan base is a generally advertising adverse group, only complicates the equation. eSports Entrepreneur published a breakdown of who these fans are and why they follow the teams, organizations that comprise the eSports scene. The long and short of it is, the process of converting fans into consumers is a critical bridge that absolutely must be crossed, even if it largely contradicts strong history of organic growth and grassroots community in the eSports world.

Historical Perspective

The early generation of leaders and visionaries, who pushed past the social stigma that gaming held in prior years, and established the foundation for today’s competitive video gaming ecosystem, did so by focusing on the purity of their mission. During this formative era, the notion of commercialization wasn’t just an afterthought, it was laughable. As a result, a counter-culture of sorts took root, one where monetization, profits, business models, etc. held no sway.

The tightly knit community of gamers who sacrificed immense amounts of time, money and personal accolades to push an entirely new genre into existence are the forefathers of everything that exists in eSports today. And it was here, within the LAN parties, the local tournaments and early online communities, that a strong tradition of grassroots involvement shaped the movement. Note: a nearly identical arc existed for extreme sports in the late 20th century.

The same spirit of independence and community first approach prevades every nook and cranny of eSports today. While the worldwide video game marketplace continues to grow year-over-year, and large publishers and peripheral manufacturers are raking in the profits; success in eSports today still requires a commitment to something larger than the profit seeking impulse.

Why Fans Must Evolve into Consumers

Contrast the reality of eSports with the traditional sports industry, and three stark differences become apparent:

1. The business of sport is bigger than the sport product. The opposite is true for eSports.
2. The nearly complete commercialization of traditional major sports is a given. Whereas, fans in the eSports domain are still leery of commercial encroachment
3. Fans of traditional sport are honed to participate as consumers (buying tickets, merchandise, purchasing sport networks on TV to view games). eSports fans are apart of a wider community of contributors, first and foremost.

None of the above differences discredit the viability of eSports; however, its continued acceptance and growth will be determined by how well these gaps are closed. Believe it or not, one of the pillars of major sport in the 21st century is the viability of industry. In fact, converting fans, of all stripes, into customers is the holy grail of modern sport. Along with it, an expectation that fan involvement will be translated into revenue, then used to attract more fans, sponsors, etc. In this regard, eSports must make headway to take its place alongside the mainstay sporting genres.

Walking a Fine Line

Interestingly, the lack of pervasive commercial presence, in comparison to major sports, has benefited the eSports scene, to date. Fans connect deeply with the genuine a sense of community and authenticity displayed across the domain; meaning the solution is NOT to stuff more products, commercials, and/or ads down their collective throats. Instead, success converting fans to consumers will be found in the following ways:

• Offering something of value (see: product or service) for a nominal cost. Premium pricing strategies won’t work. Neither will generic paywalls.
• Freemium models that prize “featurization” of a currently, and an always to remain, free offering.
• Embrace the culture of engagement. Fans will pony up $$$ when they feel apart of where things are going.

Today is Tomorrow’s Yesterday

The seeds for evolving today’s eSports fan into tomorrow’s customer must be planted today.The stigma against commercial influences must be overcome if eSports is to continue scaling current growth. Long key to the worldwide growth of eSports, fans must become accustomed to participating as customers also. Likewise, the entire ecosystem must generate positive commercialization that vibes with the unique history, culture and spirit of the eSports movement. Until then, the gap between traditional sports will remain a chasm.

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Alex Fletcher finds and recruits top talent in the eSports world – by working with and nurturing the next generation of rising stars. Visit Entiva Group for more info. When he isn’t glued to a screen, he spends time with his wife, their two dogs, and pretends to learn Polish.