Connect with us
SIS

eSports

How eSports has Created a Multi-Billion Gaming Media Market

George Miller

Published

on

How eSports has Created a Multi-Billion Gaming Media Market
Reading Time: 6 minutes

 

FN Media Group Presents Microsmallcap.com Market Commentary

 

Few sectors have seen similar rapid growth as the booming eSports sector. This formerly “niche market” has morphed into a mainstream phenomenon, which is taking the media and technology industries by storm. With some eSports competitions garnering more viewership than traditional sports tournaments, companies are realizing that this eSports trend won’t be losing steam anytime soon. Major gaming and internet media companies such as Apple (NASDAQ:AAPL), Activision-Blizzard Inc. (NASDAQ:ATVI), Electronic Arts Inc. (NASDAQ:EA), Netflix Inc. (NASDAQ:NFLX), and Enthusiast Gaming Holdings Inc. (OTC: EGHIF) (TSX-V:EGLX) are all entering the eSports scene.

Just a few years ago, eSports was barely a blip on the overall video gaming radar. What was once a non-existent sector has morphed into a $1.1 billion industry with dedicated tournaments, professional leagues, and viewership numbers that rival most major sports events. In 2016, more people watched the final match of popular eSports game League of Legends than the NBA finals. With such an explosion in popularity, early adopters and leaders involved in the esports landscape are well positioned to reap the exponential growth in years to come.

Understanding the eSports Phenomenon

Unlike traditional sports, which have seen limited growth over the past few years, eSports has been exploding in popularity at a remarkable rate. According to one Goldman Sachs report, the eSports market is predicted to double in the next three years. Another famous equity guru, Chris Parry, has gone on to say that what eSports in today’s era is in the same place that cannabis was back in 2015.

Companies like Nike, which has endorsement deals with some of the top athletes in the world, are already reaching out to major eSports celebrities with sponsorship offers. Even traditional sports team owners have also dipped into the eSports scene. Francesco Acquilini, the billionaire owner of the Vancouver Canucks, has invested heavily in an eSports Franchise of his own. “eSports has seen extraordinary success and continues to be one of the fastest growing industries in the world,” said Acquilini, who recently raised $18.7 million to acquire Luminosity Gaming.

One of the first games to acquire mainstream eSports popularity was StarCraft 2 from Activision-Blizzard Inc. Since then, the company has created many more successful games such as Overwatch, which currently has 40 million players and 11 million live play stream viewers at any time. Activision-Blizzard Inc. has even hired Steve Bornstein, former president of ESPN, NFL Network, and ACB sports to serve as president of the company’s eSports division.

Another major eSports game, Fortnite, became an instant hit as the studio behind it reported an astonishing $223 million in March 2018 alone. Fortnite creators Epic Games will be giving away US$30 million at the 2019 Fortnite World Cup. Meanwhile, the world’s most popular Fortnite streamer Ninja, brought in nearly $10 million in revenue in 2018.

Other gaming giants, such as Electronic Arts Inc., are also working closely with the eSports community. Their FIFA 18 Global Series saw over 20 million players participate globally in a series of tournaments as the company looks to build a hardcore eSports following.

The Rise of Gaming Media Platforms

Just as major gaming companies are capitalizing on the eSports trend, dedicated eSports media platforms are doing the same. Major streaming companies like Netflix Inc. consider eSports streaming more dangerous competition than HBO, saying “We compete with (and lose to) ‘Fortnite’ more than HBO.” Video streaming services being more concerned about eSports streaming than direct competitors should be a huge indicator of the disruptive nature of this sector.

Another company closely watched by analysts is Enthusiast Gaming Holdings Inc. Having already become the largest publicly traded video game media company in North America, Enthusiast Gaming has already seen an impressive 625% year-over-year revenue growth

With a network of websites and Youtube channels, reaching over 150 million monthly visitors, Enthusiast is comparable in size to major online communities like Reddit, Discord, and Twitch. Having doubled in viewership in the past six months alone, the company is the fastest growing gaming network in North America (according to Comscore). While these companies are valued in the hundreds of millions and have been purchased by conglomerates, Enthusiast’s market cap is small in comparison, at $86 million.

Enthusiast Gaming Holdings Inc. (EGHIF-EGLX) success and rapid growth, is largely due to the company’s aggressive growth strategy through acquisitions. in January, Enthusiast announced the acquisition of The Sims Resource, the world’s largest female video gaming community with 2.5 billion page views per year. The group also generates 10 percent of all views on Twitch, cementing Enthusiast’s foothold on other major platforms as well.

Over the past twenty years, the demographics of gamers have changed. Today, the average video game player is 34 years-old with far more disposable income then they had when they were younger. Instead of “growing out” of the hobby as some guessed would happen years ago, gamers have become more passionate over the years. This means that eSports companies have never been in a better position to enjoy significant growth.

Further Gaming Developments

Apple Inc.’s (NASDAQ:AAPL) gaming revenues from 2018 are estimated to be US$9.45 billion. Their 2017 gaming revenues were an estimated US$8.03 billion, this represents a year-on-year growth of 18% from their gaming portfolio alone, above their total year-on-year of 15.86%. In the 12 month period from March 2018 to March 2019, they actually experienced a total revenue decline of 5.11%. Gaming has become a big business for major conglomerates.

Veteran gamers are looking forward to this summer as Activision-Blizzard Inc. (NASDAQ: ATVI) announced they would be launching an old-school, classic version of their flagship game, World of Warcraft. With the number of active players falling over the past few years, Activision-Blizzard expects player numbers to spike. Specifically, millions of old-time players who’ve left the game or have been playing on private, non-official servers are expected to re-subscribe.

Electronic Arts Inc. (NASDAQ: EA) continues to dominate the sports games market. The company recently announced their Madden NFL 19 Bowl broke a viewership record on twitch with a live audience of 97,000. This was a 650 percent increase from last year’s Madden NFL 18 Bowl.

In a quarterly earnings report, Netflix Inc. (NASDAQ:NFLX) isn’t even focused on direct competitors such as Disney+ and Amazon Prime, saying that they can compete with other streamers based on user experience, whereas eSports require a different approach, one which they haven’t figured out yet, though alternative forms of media, such as the “choose-your-own-adventure” Black Mirror: Bandersnatch, may provide an answer.

For a FREE research report on Enthusiast Gaming Holdings Inc. (OTCQB: EGHIF) (TSXV:EGLX), visit www.microsmallcap.com

Disclaimer:  Microsmallcap.com (MSC) is the source of the Article and content set forth above. References to any issuer other than the profiled issuer are intended solely to identify industry participants and do not constitute an endorsement of any issuer and do not constitute a comparison to the profiled issuer. FN Media Group (FNM) is a third-party publisher and news dissemination service provider, which disseminates electronic information through multiple online media channels. FNM is NOT affiliated with MSC or any company mentioned herein. The commentary, views and opinions expressed in this release by MSC are solely those of MSC and are not shared by and do not reflect in any manner the views or opinions of FNM. Readers of this Article and content agree that they cannot and will not seek to hold liable MSC and FNM for any investment decisions by their readers or subscribers. MSC and FNM and their respective affiliated companies are a news dissemination and financial marketing solutions provider and are NOT registered broker-dealers/analysts/investment advisers, hold no investment licenses and may NOT sell, offer to sell or offer to buy any security.

The Article and content related to the profiled company represent the personal and subjective views of the Author (MSC), and are subject to change at any time without notice. The information provided in the Article and the content has been obtained from sources which the Author believes to be reliable. However, the Author (MSC) has not independently verified or otherwise investigated all such information. None of the Author, MSC, FNM, or any of their respective affiliates, guarantee the accuracy or completeness of any such information. This Article and content are not, and should not be regarded as investment advice or as a recommendation regarding any particular security or course of action; readers are strongly urged to speak with their own investment advisor and review all of the profiled issuer’s filings made with the Securities and Exchange Commission before making any investment decisions and should understand the risks associated with an investment in the profiled issuer’s securities, including, but not limited to, the complete loss of your investment. FNM was not compensated by any public company mentioned herein to disseminate this press release but was compensated twenty five hundred dollars by MSC, a non-affiliated third party to distribute this release on behalf of LiteLink Technologies Inc.

FNM HOLDS NO SHARES OF ANY COMPANY NAMED IN THIS RELEASE.

This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. “Forward-looking statements” describe future expectations, plans, results, or strategies and are generally preceded by words such as “may”, “future”, “plan” or “planned”, “will” or “should”, “expected,” “anticipates”, “draft”, “eventually” or “projected”. You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company’s annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and MSC and FNM undertake no obligation to update such statements.

Source: Microsmallcap.com

George Miller started his career in content marketing and has started working as an Editor/Content Manager for our company in 2016. George has acquired many experiences when it comes to interviews and newsworthy content becoming Head of Content in 2017. He is responsible for the news being shared on multiple websites that are part of the European Gaming Media Network.

Continue Reading
Advertisement
Comments

eSports

IDN Media Officially Enters Esports By Acquiring ggwp.id

George Miller

Published

on

IDN Media Officially Enters Esports By Acquiring ggwp.id
Photo Source: idn.media
Reading Time: 2 minutes

 

IDN Media officially enters the eSports industry by acquiring GGWP.ID, the leading eSports media in Indonesia. Ricky Setiawan, who is the founder of GGWP.ID, will keep his role as the CEO of a 60-people team of GGWP.ID.

The eSports industry has grown rapidly in the past few years, especially in Indonesia. Understanding the potential, IDN Media believes that eSports’ massive growth is just the beginning. It is indicated by the increase number of eSports players, viewers, and enthusiasts in Indonesia. As a result, 2019 and 2020 are projected to be the years of eSports by many industry experts.

As a one-stop eSports company, GGWP.ID will have 4 main business units: 1) eSports Media, 2) eSports Tournament Platform, 3) eSports Team, and 4) eSports Creative. eSports Media is a multi-platform media for eSports enthusiasts in Indonesia. eSports Tournament Platform is a platform that allows eSports enthusiasts to create and organize tournaments by themselves instantly. eSports Team is a professional eSports team that competes in popular games. eSports Creative is a multi-platform digital agency focusing on brand storytelling, content creation, and online activation.

In addition, GGWP.ID also hosts the leading gaming event in Indonesia, Game Prime, together with BEKRAF (Badan Ekonomi Kreatif) Republik Indonesia /  IACE (Indonesian Agency for Creative Economy) and AGI (Asosiasi Game Indonesia) – an Indonesian game association.

IDN Media is aiming to make GGWP.ID become the ‘ESPN’ of eSports in Indonesia and would like to change the perception about eSports from its stereotypical perspective – that playing games brings negative impacts. In fact, eSports can improve intelligence, teamwork, focus, and strategic thinking for Millennials and Gen Z. Through GGWP.ID, IDN Media wants to build more awareness and exposure of the opportunities that eSports can bring to society, including to eSports players, enthusiasts, content creators, and brands.

Winston Utomo, Founder & CEO of IDN Media – “We are very excited to enter the eSports industry and work together with Ricky and the whole GGWP.ID team. We believe that the eSports phenomenon has just begun. With GGWP.ID, we envision to create the biggest and most impactful eSports company in the region for Millennials and Gen Z.”

Ricky Setiawan, Founder & CEO of GGWP.ID – “We are very thrilled to join IDN Media and to work together with Winston, William, and the whole IDN Media team. As the leading media company for Millennials and Gen Z in Indonesia, IDN Media can help us reach more audience and accelerate our vision to make eSports available for everyone.”

Continue Reading

eSports

NBA 2K League – Week 11 Recap

George Miller

Published

on

NBA 2K League - Week 11 Recap
Photo Source: 2kleague.nba.com
Reading Time: 2 minutes

 

LARRY’S MOMENT: Receiving more than 138,000 votes on Twitter, Tim “oLARRY” Anselimo of Cavs Legion GC won the first-ever ESPY for “Best Esports Moment” for his return to the NBA 2K League after being shot multiple times at the tragic mass shooting at a gaming tournament in Jacksonville, Florida, in August 2018. oLARRY sustained three gunshot wounds in the incident and had to learn to hold the game controller differently. Click here to learn more about oLARRY’s story. 

THE FAB FIVE: During Week 11, the NBA 2K League announced five finalists for the 2019 Intel Performance NBA 2K League Most Valuable Player Award: Blazer5 Gaming’s Nidal “Mama Im Dat Man” Nasser, Celtics Crossover Gaming’s Albano “oFAB” Thomallari, Kings Guard Gaming’s Michael “Bp” Diaz, Magic Gaming’s Brendan “Reizey” Hill, and 76ers GC’s Ethan “Radiant” White. Notably, all five are point guards and two (Reizey and Bp) are rookies. Click here for complete information on the 2019 NBA 2K League Awards. 

MO MONEY, NO PROBLEMS: With two victories in Week 11, T-Wolves Gaming extended their regular-season winning streak to six games. Rookie small forward Jordan “JMoneyRep817” Martinez cashed in 57 total points in the two games, earning him the Intel Player of the Week Award for Week 11. The Texas-native netted 25 points and four assists in a 70-61 victory over Knicks Gaming while adding 32 points and seven steals in an 82-42 win over Heat Check Gaming.

THE SHOWCASE IS BACK: On Friday, August 2 at 7 p.m. ET, the league will tip off the 2019 Finals weekend with the second annual NBA 2K League Showcase – a tournament featuring professional NBA 2K League players and influencers from the worlds of sports and entertainment. Confirmed participants include former NFL player Jeremy Maclin, music artist Ponce De’Leioun, content creator FlightReacts, content creator SGK7, and content creator GirlGamerChas. The event will take place at the NBA 2K League Studio Powered by Intel in Long Island City, New York and will be livestreamed on Twitch and YouTube.

WEEK 11 RECAP

Wednesday, July 10: 

  • Knicks Gaming 61 @ T-Wolves Gaming 70 
  • Pistons GT 62 @ Raptors Uprising GC 72 
  • T-Wolves Gaming 80 @ Heat Check Gaming 42 
  • Lakers Gaming 68 @ Pistons GT 43 
  • Raptors Uprising GC 55 @ Heat Check Gaming 63 

Thursday, July 11: 

  • Wizards District Gaming 60 @ 76ers GC 76 
  • Knicks Gaming 79 @ Hawks Talon GC 67 
  • Celtics Crossover Gaming 65 @ Lakers Gaming 60 

Friday, July 12: 

  • NetsGC 53 @ Wizards District Gaming 72 
  • 76ers GC 71 @ Pacers Gaming 55 
  • Grizz Gaming 80 @ NetsGC 51 
  • Pacers Gaming 67 @ Hawks Talon GC 75 
  • Celtics Crossover Gaming 53 @ Magic Gaming 48 
Continue Reading

eSports

U.S. to Host The Esports Awards 2019

Niji Narayan

Published

on

U.S. to Host The Esports Awards 2019
Reading Time: 1 minute

 

The Esports Awards 2019 is going to be held at the Esports Stadium Arlington on November 16. It is a win for Arlington, but a loss for London, which has been the home of Esports Awards for the past three years.

The majority of viewers and participants are located within the U.S., while the UK esports scene is still in its infancy. The esports stadium should be better equipped for such an event too, providing production crews access to already installed equipment, specialised for such events and live broadcasts. The Esports Stadium Arlington was opened in 2018.

Continue Reading
Advertisement
NSoft

Global Gaming Industry Newsletter – Weekly Digest (sent every Wednesday)

Please select all the ways you would like to hear from European Gaming Media and Events:

You can unsubscribe at any time by clicking the link in the footer of our emails. For information about our privacy practices, please visit our website.

We use Mailchimp as our marketing platform. By clicking below to subscribe, you acknowledge that your information will be transferred to Mailchimp for processing. Learn more about Mailchimp's privacy practices here. Read more about European Gaming Media and Event's Privacy Policy and Terms of Service.

Subscribe to our News via Email

Enter your email address to subscribe to our news and receive notifications of new posts by email.

Latest by author

Trending

Notice for AdBlock users

We are constantly showing banners about important news regarding events and product launches. Please turn AdBlock off in order to see these areas.