Esports — Interactive Media Meets Gaming
Over the past year we have seen a remarkable growth of professional video gaming and the ecosphere around it. Esports now has a greater viewership than many major sports, including basketball and baseball and is predicted to become the second most watched sport by 2020.
In part, this has been caused by a convergence between the changing way media is consumed and recent developments in technology.
Interactive media (including gaming) has become a very compelling component of how we spend time. At the same time, gaming content is becoming more engaging. Processing power, bandwidth capabilities are constantly improving and, also, separate from technology constraints, publishers are simply getting better at the “art” and process of game creation.
The way people access media content is changing. Over-the-top (OTT) content has become the standard way that millennials consume media. OTT refers to content providers that distribute streaming media directly to the consumer, without need for telecommunications, or broadcast television. This provides an ecosphere with a freer relationship between publishers, content producers and consumers.
While in traditional sports, it is the broadcaster who has control, in esports the publishers and content creators have direct access to the end users. This aspect of the sector is a key component in how the esports industry has evolved.
Monetization
As I discussed in a previous article, monetization in esports is currently way behind the levels it is in traditional sports. In fact, esports has more possibility for monetization than traditional sports. The esports audience is more highly employed and earn more money than the traditional sports audience and is harder to reach by traditional methods due to their preferred consumption of OTT content. For brands, it is potentially far more valuable than the traditional sports audience.
Currently, monetization in esports is growing faster than the audience itself, with more than 600 major brands, including many outside of the gaming industry, now involved in sponsorship and advertising deals at multiple levels of the ecosphere. However, there are still some considerable barriers of entry for brands wishing to enter the industry, including these key problems:
- The esports market is complex and difficult for brands to understand the most appropriate channels to reach their target audience. Marketing campaigns are often less targeted, more expensive with lower ROI than could otherwise be possible.
- Brands with limited budget can be excluded from entry to the marketplace.
- There is no single point of entry for brands. The market is fragmented and inefficient meaning a large part of brands’ marketing budget is spent on research, contract administration and various intermediary/agency fees.
For more information on these issues and how EIPlatform will position itself as a global solution to them, please refer to our official website and to other articles on Medium.
Esports Viewing Trends
Of those that watch esports, two-thirds watch livestreams, on laptops or phones. Almost one half also watch on TV on channels like ESPN or Turner. Among esports fans, live events are very popular. 20% of esports fans attend regularly or have attended live esports events and tickets usually sell out within minutes of being put on sale. Events themselves are becoming more elaborate as publishers and designers come up with new ideas to enhance the experience of watching live.
There is a lot of interest in purpose built esports stadia which rethink the way the physical space can create a more immersive experience for spectators.
In April, architects Populous unveiled plans for a dedicated esports arena in Arlington, Texas. This will become the largest and most flexible esports stadium in the country and position the city as the epicentre for esports in the heart of North America. Recently, they also released plans for spherical arenas in London and Las Vegas — to be built primarily for music and esports events.
Populous imagine a future where esports events expand outside the confines of the venue, by creating an esports neighbourhood as an international destination. Their vision is complete with high-performance training buildings, developer labs, competition spaces, custom retail and food and beverage options and even a drone racing course.
The Future of Esports
In the remainder of 2018 and beyond, esports and digital gaming look certain to continue to push into the mainstream. There will be more viewers, professional players and teams. There will be more monetization, more brands and more sponsorship. It seems likely that a broader range of game genres, including more sports games, will be played professionally, which will attract a more diverse crowd, with a wider age range and more equitable gender split.
It is no exaggeration to say that the esports world is at the edge of a new era and we will see many developments in the coming months and years.
As a decentralized platform to facilitate the direct interaction between the various participants in the esports ecosphere, we feel that EIPlatform is positioned to take an important role in the future of esports.
Please find out more about the platform at eiplatform.io and see the EIP whitepaper for more information.
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