marketplace, outlook

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.

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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:

REDEF_eSports_1.2

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.

 

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How eSports Can Change the Face of Las Vegas (and Sports Gambling)

News that legislation could bring an eSports flavor to the Las Vegas experience, broke earlier today and immediately struck a chord. The inclusion of slot machines with a competitive flavor, instead of older ‘luck of the draw’ versions will do more than just attract younger gamblers. The notion that a staple of Vegas gambling, slot machines, will introduce more skilled-based elements is notable, in and of itself. However, here’s my prediction: this “new era of gaming entertainment,” as hailed the Association of Gaming Equipment Manufacturers, will feature Las Vegas, Nevada as the North American hub for large, moneyed invitational style eSports events a la the World Series of Poker.

Why Vegas? Well, we’ve seen Riot move the NA Summer Split Championship to Madison Square Garden (MSG) in New York City. A shift which will could transform into a trend of permanent, big city locations for major eSports events across North America. I’ve attempted to tackle the subject of how important locality is to sport, here and here, so it makes sense that yearly events find stable homes sooner rather than later. And, as gaming entertainment becomes a part of the Vegas experience, the door will open to capitalize on the international appeal of one of North America’s top tourist locations.

Long known as the de-facto gamblers vacation destination in the USA, Las Vegas now finds itself facing the reality of multiple states legalizing certain forms of gambling in an attempt to heal budget woes. Casinos are appearing in cities from coast to coast. It’s no longer profitable to simply be the home of slot machines and black jack tables. Las Vegas has re-fashioned itself as a premier entertainment destination. Meaning the opportunity to emerge as an annual home to events consisting of largely millennial crowds and viewing audiences, would be quite significant.

Moreover, Startups like Unikrn, whose CEO has gone on record for the legalization of sports betting in the USA, are setting the tone for what could become a symbiotic relationship between eSports and gambling. Meaning as discourse on why sports betting isn’t legal in the USA becomes more prevalent, eSports betting could serve as a catalyst. It’s very possible that as global $$$ figures pick up around eSports betting, certain states (see: Nevada) will pass legislation to allow it. Perhaps opening the door for more traditional sports down the line. Either way, gambling (not ticket sales, or merchandise, or paid media content) has a great chance to emerge as the first widespread revenue driver across the worldwide eSports industry.

This momentum would play right into the spirit of America’s gambling capital, Las Vegas; and would make good business sense for tomorrow’s leaders in eSports gambling to push for moving large invitational tournaments to a city with the energy and newly demonstrated acceptance of gaming entertainment, like Las Vegas. The excitement surrounding the 2015 LCS Mid Season Invitational (MSI), held in Tallahassee, Florida, would be a blip on the radar in comparison to a Vegas hosted event.

eSports, with its fusion of technology, competitive action and electronic friendly composition, makes for an ideal 21st century entertainment outlet; matched against a backdrop of the “City of Lights,” there’s little reason that this combination won’t be a game changer. It also has the potential to open the floodgates for legalizing sports betting across the USA. Only time will tell the true story, but it will be fun watching the plot unfold.


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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.

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Why Live Events are the Future of eSports

Earlier this year Eventbrite released a study on eSports live event attendance. The report is full of valuable information that highlights just how important live events are to fan engagement. While digital platforms like Twitch are the predominant channel for eSports consumption, live events offer the best opportunity to generate revenue and grow fan participation.

In the traditional sports world media giants bid skyrocketing sums of money for the right to broadcast live sporting events. The money for these TV deals are then shared among the teams in a league providing, what amounts to, a large, passive source of revenue. Teams don’t have to do anything differently. League structure, rules and protocol is the same. Except they pocket money from being broadcast on TV. This is a win-win in that TV broadcasts allow teams to reach more viewers which increases their value to sponsors and partners.

eSports does not have this luxury today. Even with a growing pot of money for streaming popular content (like matches), there isn’t a mature model for monetizing viewership. This is why live events and physical activity spaces are critical to the future of eSports. As the Eventbrite study concluded, whether it’s match attendance, conventions, or fan conventions; there is a huge opportunity to capitalize on the appetite for in-person events. Relying solely on a geographically dislocated audience, however large and growing it may be, will not spur continued growth in the space.

A healthy, thriving eSports industry requires more focus on increasing the variety and frequency of live events. Strong online viewership/participation will only take the gravy boat so far. Leagues, teams and organizations must galvanize events to effectively grow the business of eSports. Not just in terms of selling t-shirts and tickets, but in growing the culture of competitive gaming as a whole. It can be argued that mainstream acceptance will spike once eSports becomes less solely virtual and more real. After all, people associate consistent crowds of people, stadiums full of fans, and physical events with 21st century sporting events.

The bottom line is, fans and supporters need community. And while online forums and platforms have fostered a tremendous amount of growth thus far, there must be more opportunities to interact IRL; the very future of eSports 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.

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