What is eSports and what are its emerging business models?
The esport phenomenon is experiencing one of the highest growth rates in terms of followers. Thanks to esport, the doors have been opened to new business ideas in an industry where large amounts of money are already flowing. We are talking about professional video game competitions, which are no longer just a game but a profession. You still don't know what esport is?
The true passion for video game competitions leads many people to wonder what esport is and what is new compared to traditional forms of gaming. This article will tell you everything you need to know about eSports.
What are eSports?
ESports, or e-sports, are a new development in the field of video games. This term refers to competitions organized at a professional level. They are multi-player competitions in various video game disciplines. The way it works is very simple: each esport has its own rules and can be played online or offline on different devices and platforms.
Although at first glance this format seems to be a failure - the public is not as interested in watching as in playing - we have already seen how these video game competitions, in which spectators watch other players play, fascinate people.
The Spanish media recognized the potential of e-sports a few years ago. That's how the program Generation Esports on GOL was born, a 45-minute news program that offers not only the latest news from the world of e-sports, but also reports on LVP competitions and weekly appearances by professionals from different teams.
But it's not just on television that it has grown. Such is the enthusiasm for e-sports that powerful film companies - Gary Sanchez Productions (Deadline) and Legendary Pictures (Warcraft) - have already decided to produce a film about the sport. It's a quirky comedy about an eSports team. Nobody wants to miss out on this golden goose and eSports is already a very profitable future business.
Video games are no longer just a game for kids. Today, this discipline fills the stadiums. In addition, competitions are held all over the world and have become a trending topic on social networks. Its expansion has led to an increase in business models interested in promoting e-sports and creating a new ecosystem.
Facts about esports
The following are some facts to help understand what esports is, what the average audience profile is, and how esports is consumed according to the latest surveys:
Most audiences prefer to play esports on weekends (62%), compared to those who prefer to play during the week (38%).
The esports fan experiences their passion both actively and passively. The vast majority of respondents say they prefer to watch and play esports (86%) rather than just play (7.6%) or just watch (5.7%).
Women account for nearly 9% of respondents, compared to over 80% of men. A figure that may seem very low at first glance, but hides an increase in the percentage of women by 293% over the previous year.
The home PC is still the preferred device for watching sports (60 percent), followed by the cell phone as second choice (22 percent) and, in third place but far behind the top positions, the TV (5.9 percent).
Spain is the third fastest growing country in this sector.
What are the conditions for video games to be considered e-sports?
The video game industry is almost infinite, so not all games can be considered eSports. There is a set of rules or conditions that must be met to be considered as such. Although there are no official rules, these are some of the most important characteristics:
The game must allow two or more players to compete against each other (non-multiplayer games are excluded). In addition, they must compete on a level playing field. In other words, players cannot pay to gain more experience; only the skills of the participants count.
There should be official, regulated leagues and competitions, organized by companies or sponsors that advertise the event in the media and have professional teams and players. For example, the LVP (Professional Video Game League), Superliga Orange, ESL Masters Spain, or LCS EU.
Reach a large number of fans who play or follow competitions to create demand for information. Currently, there are already several platforms that offer this type of competition streaming. The best known is Twitch, owned by the giant Amazon. Other private channels are also joining this trend, such as Movistar TV, which has an alliance with As newspaper, or Gol TV. They have exclusive programming to talk about these competitions.
There are hundreds of games that can meet these rules, but only a few have enough fans to be included in the e-sports list.
Business opportunities in eSports
The economic figures achieved by video games in recent years show that it is a powerful and growing industry with thousands of fans worldwide. Major players such as LaLiga eSports, which is already involved in several eSports projects with soccer as the main theme, have already embarked on eSports.
These competitions fill stadiums and reach impressive audiences around the world. The common practice of users of all ages playing these video games has created a very strong audience.
According to a study by the company Newzoo, e-sports could surpass the Super Bowl or the Champions League in terms of viewers and final revenue in less than a decade. The ability to stream other players' games around the world is already possible through Twitch. This platform is visited by millions of users every month who want to see the best strategies of professional players as if they were on a TV show.
This demand attracts media attention from private channels such as Movistar, Orange, Bimbo, Gol TV, Neox, Deloitte and others. In addition, of course, all computer and device manufacturers are already interested in eSports as a business.
Therefore, the eSports ecosystem offers several business model opportunities:
COMPETITIONS
We have an ecosystem of teams, players, prizes, tokens and transfers.
MARKETING
Collaboration with sponsors. These are social network and internet audiences, media and content and youtubers.
ACADEMY
Through university agreements, new talent, online training centers, etc.
MERCHANDISING
Through competition equipment, clothing and accessories, agreements with sponsors, etc.
Overview of eSports in Spain
The eSports phenomenon continues to grow by leaps and bounds. Spain represents about 4% of the global eSports economy and the sector's revenues have already exceeded 35 million euros per year in our country, according to a study by the Spanish Association of Video Games (AEVI).
ESports or e-sports are video game competitions that have become real sporting events capable of filling stadiums. They can be played by amateurs or professionals, in person or online.
Although there are dozens of video games that are talked about, the most famous e-sports that stand out from the rest are: League of Legends, Counter-Strike Global Offensive, Clash Royale, FIFA and Call of Duty. The eSports audience has grown tremendously in recent years. It is estimated that there are nearly 200 million fans worldwide and 2.9 million in Spain.
Although it sometimes seems the opposite, the audience profile is increasingly adult: 55% of viewers are over 25 years old. In addition, Spain has the highest percentage of female eSports viewers in Europe, with 36%. This target group is characterized by consuming a lot of online content, but at the same time is very attractive to many brands. The majority of eSports revenue comes from advertising and sponsorship. According to AEVI, the sector employs about 600 people in the country, including 250 professional players.
COMPETITIONS AND TEAMS IN SPAIN
Due to the large number of amateur tournaments, there are no exact figures on the number of eSports competitions that take place each year. However, there are currently four professional leagues in Spain: League of Legends Superliga Orange, CSGO Unity League, Clash Royale Crown League and Rainbow Six Siege R6 Spain Nationals.
The number of international tournaments is similar to that of Dreamhack Valencia, but there are hundreds or thousands of amateur competitions played for small prizes every year. The Vodafone Giants or the Movistar Riders are two of the most important teams in our country, with many successes inside and outside our borders.
The economic figures of video games have shown in recent years that it is a powerful and growing industry, with thousands of followers around the world. Thanks to Twitch, it is now possible to stream other players' games around the world. So the eSports ecosystem offers many opportunities for business models.
Objectives of eSport
The goals of esports are not just about winning and playing. There is a story behind this new phase of eSports.
One of the main goals of eSports is to train a new generation of professionals who will improve their technical knowledge of different video games and encourage players to promote healthy values and habits.
E-sports move more than money
We already know what eSports are and that they bring in millions of dollars, but which are the best eSports in the world? Here are the top five:
FORTNITE
Fortnite is an absolute hit. It took the professional eSports scene by storm last year. It became a reality when Epic Games, the game's creator, announced that it would make €100 million in prizes available to competitors. As a result, professional players appeared everywhere. In addition, the most famous teams began to include the game in their teams.
DOTA2
Dota 2 (Defense of the Ancients 2) is a multiplayer combat arena game developed by Valve Corporation and released for free on the Steam gaming platform in 2013. It is currently the most played game on this platform. Dota's development was originally planned as a standalone sequel to WarCraft III's custom map Defense of the Ancients. However, thanks to the interest of former employees, it became what it is today.
COUNTER-STRIKE: GLOBAL OFFENSIVE
Counter-Strike: Global Offensive (CS: GO for short) is a tactical first-person shooter. It was developed by Valve Corporation and Hidden Path Entertainment in 2012. It is the fourth game in the Counter-Strike franchise, which pits teams of counter-terrorists against teams of terrorists. The round is won when all mission objectives have been completed or the opposing force has been eliminated.
PUBG
PUBG (Playerunknown's Battlegrounds) is a fighting video game developed by Brendan Greene. In the game, a hundred players parachute from a plane onto an island from where they can reach a location of their choice. From there, they search for weapons and equipment to kill other players without being killed themselves.
SURVIVAL
Finally, in this top five, we have Overwatch. Blizzard launched its competitive shooter offering two years ago and it has become an event and a trending genre. Years pass and the success continues. In addition to the Overwatch League and World Cup, last year the company launched Overwatch Contenders, a series of tournaments in different territories.
Where can people train for eSports?
"Every day eSports is showing us how to surpass the audience of traditional sports," explains Pascual Parada, director of the Master's in eSports Management program at IEBS. "A trend has begun that is intensifying as new generations with great talent continue to enter the industry who, if well trained, will be able to take advantage of all the opportunities that are emerging," he adds.
The unstoppable growth of eSports has led to a flourishing of academies dedicated to training industry professionals, with the goal of turning eSports amateurs into professionals capable of operating across borders.
There are also others responsible for supporting these competitions in areas such as marketing, legal framework, team and league management-jobs that are constantly growing in this industry.
So if you want to dedicate yourself 100 percent to eSports and focus your career on one of the most powerful industries, do the Master's in eSports Management. What are you waiting for?
