Category: Business

Inaugural eNASCAR iRacing Pro Invitational Series Race Becomes Most-Watched Esports TV Show to Date

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Engadget: “NASCAR and Fox Sports might have started airing virtual races out of pandemic-induced necessity, but it appears their efforts paid off. Fox has revealed that the inaugural eNASCAR iRacing Pro Invitational Series race on March 22nd drew 903,000 viewers on FS1, making it the highest-rated esports TV program to date. It was also the most-watched broadcast on FS1 since mass sports event cancellations on March 12th and the most-watched sports broadcast on cable that Sunday, although those last two feats weren’t too difficult given the dearth of live sports.”

“There’s little doubt that NASCAR and Fox had the advantages of both an audience with nowhere to go as well as a bevy of real-world pro drivers, including race winner Denny Hamlin. Viewership might not have been what it was otherwise. All the same, this does show that people are willing to watch esports on TV in large numbers given the right circumstances, and suggests that more than a few people got their first taste of competitive gaming this past weekend.”

Overwatch Collegiate Clash Presents $40,000 in Esports Scholarships

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Engadget: “There’s certainly an active Overwatch college esports scene, but it can be difficult for a player to stand out and turn pro when there are hundreds of schools. Activision Blizzard, Torque and UMG might have a way for serious players to shine. They’re launching an Overwatch Collegiate Clash series that will have college competitive teams square off for a chance at both recognition and a total $40,000 in esports scholarships. The eight-week series will have eight teams face each other per week, with a final round pitting the winning teams against each other.”

Activision Blizzard’s Esports, YouTube Agree on $160 Million Deal

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Forbes: “Google’s YouTube paid $160 million over three years to exclusively stream Activision Blizzard’s esports leagues and events, Sports Business Journal reported, citing sources familiar with the terms.”

“According to the report, the agreement was driven by the more proven Overwatch League, with Hearthstone basically added in for free, and includes lucrative bonuses if certain ad and viewership benchmarks are met.”

“YouTube has been attempting to grow its live-streaming capabilities and pull away market share away from Twitch, the undisputed market leader with 73% of the viewership, according to streaming toolmaker StreamElements.”

Gareth Bale, Professional Soccer Player, Launches Ellevens Esports

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Esports Insider: “Professional footballer Gareth Bale has launched Ellevens Esports in partnership with 38 Entertainment Group.”

“The organization is starting out in FIFA, having signed a team that will compete in the FIFA eClub World Cup in February. Ellevens Esports is looking to enter Counter-Strike: Global Offensive, Rocket League, and Fortnite in the coming months.”

“Bale discussed the venture in a release: ‘On the pitch, my goal is always to win. With Ellevens Esports, that winning attitude is just as important. There are similarities between football and esports in that it takes real dedication and sacrifice to reach the top of your game.'”

Three Esports Leagues Move to YouTube, Continuing the Livestream Wars

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Wired: “Today, YouTube announced that it will exclusively stream three behemoth esports leagues—the Call of Duty League, the Overwatch League, and Hearthstone Esports, all controlled by Activision Blizzard—that had lived primarily on the game streaming platform Twitch. News of the defections rattled the esports world, especially as it came mere hours before the Call of Duty League’s inaugural match.”

“Twitch had held exclusive Overwatch League streaming rights since 2018, when it signed a reported $90 million deal. YouTube’s partnership spans several years as well; Google Cloud will also host Activision Blizzard’s entire library of games.”

“It’s the latest in a series of high-profile YouTube gaming poaches. Over the past several months, YouTube has plucked Twitch mainstays like Jack “CouRage” Dunlop, who boasted an average of more than 9,000 live viewers per stream. Just last week, YouTube announced exclusive deals with three gaming giants, Rachell “Valkyrae” Hofstetter, Elliott “Muselk” Watkins, and Lannan “LazarBeam” Eacott. Nabbing Activision’s esports as well will be an enormous boon for the growing YouTube live gaming platform, which currently accounts for about 28 percent of livestreamed hours, to Twitch’s 61 percent, according to stream platform analytics firm StreamElements.”

100 Thieves Finishes Building Biggest Esports Facility

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CNN: “Gaming company 100 Thieves has built the biggest esports facility in the United States. Located in Culver City, Los Angeles, the 15,000-square-foot compound may have an arcade and an outdoor basketball hoop, but it also has designated training rooms for playing video games professionally.”

“The new building has rooms dedicated to gaming including a “Fortnite” room, a “League of Legends” room and a “CS:GO” room. The rooms are decked with gaming chairs that retail for hundreds of dollars each and PC gaming rigs.”

Should Esports Players Unionize?

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Global Sport Matters: “No legally recognized player unions operate in the esports industry, leaving players and their representatives to negotiate contracts without the protections or restrictions brought on by collective bargaining. But as the industry grows, questions arise about when and how players should organize.”

“These conversations led Harris Peskin, associate attorney at ESG Law from New York and executive director of the Esports Bar Association, to lay out the esports ecosystem and how the history of antitrust restrictions might interact with it. But he ultimately declined to say whether players should or shouldn’t unionize. Instead, Peskin states that his goal is simply to raise awareness.”

“At some point in the not-too-distant future, the status quo will cease to be a viable option,” Peskin wrote. “At that inflection point, players will be faced with a choice. They should fully understand the consequences and economic realities associated with that choice.”

Esports Revenue, Audience Continue Rapid Growth

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Forbes: “Esports has continued its rapid global growth with revenues exceeding $1 billion and audiences of more than 443 million across the globe, according to research by Green Man Gaming.“

“That following is already greater than American Football and rugby combined—and is predicted to reach 645 million by 2020.”

“The numbers suggest that esports is fast on its way to becoming the most financially lucrative market on the planet, thanks to huge exposure and interest in major tournaments.”

Does eSports Depend on Franchising?

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As eSports leagues and teams look to grow, a central question becomes one around business models. Many participants are considering the pros and cons of franchising.

Esports Observer: “Franchising has been an important tool in getting traditional sports investors involved in esports in recent years, but the effectiveness of the system itself conversely remains a controversial and hotly debated topic within gaming.”

“Proponents of the move say that franchising has added investment, a more sophisticated business structure, stability, expertise, and enterprise value to esports. That’s because the ubiquity of the franchising model in traditional sports has helped make the structure of esports leagues more understandable and thus more alluring to prospective owners and advertisers.”

“But questions remain about whether some of the franchise fees were exorbitant, whether geo-location is the best way to unlock fandom for franchised leagues, and whether some games that are currently not franchised would be best served by staying that way.”

Difference in Pro e-Sports vs. Traditional Sports: “Who’s in Charge”

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Dan Primack of Axios attended “a party where you just felt you didn’t belong,” namely, the Overwatch League final match at Philadelphia’s Wells Fargo Center, “while filming an ‘Axios on HBO‘ segment about professional e-sports.”

Important insight: “The big difference between pro e-sports and traditional sports is who’s in charge. In e-sports, the publisher is king. The commissioner works for the CEO, not for the franchise owners.”

“It’s a model that makes sense for now, kind of like how console-makers once controlled game development. Well, until a group of Atari developers created Activision, in an act of decentralized rebellion that today’s Activision Blizzard would be wise to remember.”