Why Are Companies Getting Into E-Sports?
In sync with the development of gaming systems such as the Xbox, PlayStation, and PC; eSports have also grown to be very popular in recent years. The sport is also known as Electronic Sports and relates to the competitive tournaments and leagues for different video games involving professional gamers.
There were gaming competitions before the turn of the millennium however these were usually offline, now in the modern day, most of the competitions are based solely online with players being able to play from the comfort of their own home. Today we’re going to look at what has motivated some of the largest companies in the world to get in on the action when it comes to eSports and the growth.
What’s In It For The Companies?
It has been estimated that this year a staggering 427 million people worldwide will be watching some form of eSports. To be able to reach this many people, and mainly to be able to monetize this reach through adverts, has led to companies getting in on the action.
However, eSports also has these companies to thank, and it is partially down to these companies that eSports has risen in such a fashion as it has. The significant players when it comes to the live streaming of eSports are YouTube, Twitch, and Panda.tv. Subsequently, the more prominent tech companies are the parents of these companies, with Google owning YouTube and Amazon purchasing Twitch in 2016 for a mind-blowing $970 million.
In fact, it was down to eSports that YouTube relaunched their live streaming service which was initially stopped; this was due to their primary focus both on live gaming and e-sports.
Many news websites have now started reporting on eSports in the same manner as they would do with real-life sports. Some of the biggest news companies to begin reporting on eSports include American giants such as ESPN and Yahoo!
With tournaments sometimes having prize pots of seven figures or more, it is also a significant opportunity for businesses to sponsor both tournaments and professional teams in order to advertise their company. They aren’t throwing their money into an empty pit, however. In 2015 the eSports market generated revenues in the region of $325million, meaning that the sector can be an excellent investment.
The growth and reach that eSports has globally have led to big companies seeing a fantastic financial opportunity for growth. Not just companies but even celebrities are getting in on the action and contributing to funding rounds for professional teams. This includes celebrities such as musical superstar Drake and Scooter Braun becoming co-owners of the professional gaming team 100 thieves.
Immediately the press and exposure that this takeover had benefited both of the co-owners, giving them publicity on a scale that would have been a lot more expensive through other means and channels. Such is the popularity of betting on eSports, many sites have cropped up such as sportsbettingadvice.com in an attempt to offer advice information to the public.