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Esports Overview and Investing Opportunities

orliesaurus
March 23, 2016

Esports Overview and Investing Opportunities

Esports are becoming a huge market with a lot of potential opportunities for investors and technologists to help set the foundations of the ecosystem. Understand the basics and the growth of the esport market within this presentation.

orliesaurus

March 23, 2016
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  1. E S P O R T S - S E

    I Z I N G T H E O P P O R T U N I T Y I N V E S T I N G , M A R K E T O P P O R T U N I T I E S , B O O M I N G S E C T O R
  2. W H A T A R E E S P

    O R T S Esports are a sub-grouping of sports. Esports are played through videogames, rather than outdoor or indoor facilities.
 
 There is usually none to little physical activity involved but requires instead its players to be extremely well-versed in mastering the logic of the game being played, and its mechanics.
 
 Esports are played through input devices such as mouse & keyboard or other controllers, connected to a gaming machine (computer or console) against human opponents over Local Area Network or the internet.
  3. W H A T A R E E S P

    O R T S Most video games can build an esport scene. Usually extremely popular video games have a large esport scene. 
 
 However some video games are not built with the goal to be competitive and are more aimed at casual gamers.
  4. W H O A R E P R O F

    E S S I O N A L C O M P E T I T I V E V I D E O G A M E R S ? • Playing video games at a competitive level for fame, hefty tournament prizes and sponsorships.
 • Just like Football, Basketball, Hockey or Golf are sports there are multiple types of esports games, mostly played as team-versus-team or 1-on-1s.
 • Similar to other types of sports, it requires practice and discipline to become a professional esports athlete (or cyberathlete).
 • Esports employs not only athletes but also analysts, casters, coaches, managers, writers, designers, video & audio editors etc.
 • Professional esports athletes are usually paid monthly wages and much more than what you might think.
  5. L I V E - S T R E A

    M I N G • When Esports Athletes aren’t busy playing tournaments in front of hundreds of thousands of eyes, they’re either practicing or live-streaming. • Live-Streaming video games is huge in numbers (next slide) and can include the streamer to interact through webcam, voice and/or text with the viewers. • Most streamers monetise their streams through platforms such as Twitch or Azubu (more focused on the asian market)
  6. L I V E - S T R E A

    M I N G N U M B E R S • League of Legends (by RIOT Games) live-streams have been watched for a grand total of 1.028.106.986 hours in 2015 * • Counter Strike: Global Offensive (by Valve) live streams have been watched for a grand total of 552.673.854 hours in the same period * • Each of these games have between 50.000 and 150.000 concurrent viewers, at each one time of the day on Twitch.tv * data source: gamoloco.com
  7. E S P O R T S L I V

    E - S T R E A M I N G : T H E N • Esport tournaments also live-stream their events and rack up a lot of viewers and hours: • RIOT games, in 2013, has streamed the finals of their esports championship to 8.5 Million viewers concurrently; including re-broadcasts and on-demand it totalled to 32 Million viewers. • That is almost 1/3rd of the amount the viewers the SuperBowl has had the same year. data sources: http://www.theverge.com/2013/11/19/5123724/league-of-legends-world-championship-32-million-viewers
 http://na.leagueoflegends.com/en/news/esports/esports-editorial/one-world-championship-32-million-viewers
  8. E S P O R T S L I V

    E - S T R E A M I N G : N O W • RIOT games reported 360 Million hours viewed as of late 2015 for their World Championship tournament. • The average watcher viewed over an hour of esports per match-day. Considering there were 73 matches with an average concurrent viewership of 4.2 Million viewers, that’s really impressive. data sources: http://www.theverge.com/2013/11/19/5123724/league-of-legends-world-championship-32-million-viewers
 http://na.leagueoflegends.com/en/news/esports/esports-editorial/one-world-championship-32-million-viewers
  9. C A S E S T U D Y: 


    L E A G U E O F L E G E N D S 
 B Y R I O T G A M E S L E A G U E O F L E G E N D S I S T O D AY ’ S L E A D E R I N T E R M S O F E S P O R T S N U M B E R S A N D G L O B A L P L AY E R - B A S E
  10. 
 O V E R 7 0 M I L

    L I O N A C C O U N T S R E G I S T E R E D ( A L L F R E E ) 
 O V E R 1 2 M I L L I O N A C T I V E D A I LY P L AY E R S M O S T P L AY E R S A R E A G E D 1 6 - 3 0 L E A G U E O F L E G E N D S I N N U M B E R S : data source: http://majorleagueoflegends.s3.amazonaws.com/lol_infographic.png
  11. R I O T G A M E S W

    O R L D C H A M P I O N S H I P 
 U N I Q U E V I S I T O R S ( I N M I L L I O N S ) 0 100 200 300 400 2013 2014 2015 32 288 334 data sources:
 http://www.riotgames.com/articles/20141201/1628/worlds-2014-numbers http://www.lolesports.com/en_US/articles/worlds-2015-viewership
  12. R I O T G A M E S W

    O R L D C H A M P I O N S H I P 
 H O U R S V I E W E D ( I N M I L L I O N S ) 0 100 200 300 400 2013 2014 2015 55 194 360 data sources:
 http://www.riotgames.com/articles/20141201/1628/worlds-2014-numbers http://www.lolesports.com/en_US/articles/worlds-2015-viewership
  13. R I O T G A M E S W

    O R L D C H A M P I O N S H I P F I N A L E V E N T: 
 C O N C U R R E N T V I E W E R S ( I N M I L L I O N S ) 0 10 20 30 40 2013 2014 2015 27 36 8.5 11 14 concurrent highest peak total viewers data sources:
 http://www.riotgames.com/articles/20141201/1628/worlds-2014-numbers http://www.lolesports.com/en_US/articles/worlds-2015-viewership
  14. Other prominent esports videogames:
 Counter-Strike:Global Offensive
 Hearthstone DoTA2 
 followed

    by Call of Duty series Halo series FIFA series
 Albeit they carry smaller numbers
  15. V I D E O G A M E S

    , E S P O R T S A N D T H E I R H U G E N U M B E R S • Esports is only part of the videogame movement. • Millions of people are involved in video games everyday, whether as players, producers or consumers of videogame related content. • League of Legends has 12+ Milions daily players • Counter Strike: Global Offensive has ~700.000 monthly active players • DoTA2 has also ~700.000 monthly active players data source: http://steamcharts.com/
  16. I N V E S T I N G O

    P P O R T U N I T I E S
  17. - S H A Q U I L L E

    O ’ N E A L 
 0 3 / 1 7 / 2 0 1 6 “Pumped to join my new team @lolnrg and start tearing down turrets! Get ready for the Shaq attack! #leagueoflegends” Reason #1 Shaq already did
  18. Companies like Coca Cola, RedBull, Monster understand millennials and trends

    very well and have already pledged their involvement in esports by being taking on major sponsorships for esports tournaments.
 Computer Hardware manufacturers such as Logitech, HyperX, Razer also do so. Reason #2 Early is better than later According to research firms* the esport market will be worth over $1 Billion by 2018
  19. Reason #3 Esports is about services Investing in sports is

    not necessarily investing money in a team of players, but also technology, platforms and services that support this ecosystem. Startups that operate in:
 News & media outlets
 Virtual item marketplaces
 Coaching services
 Statistics and analytics
 Betting and Fantasy leagues
 Streaming
 Tourney & Challenges hosting
 Highlights and Replays 
 ..and more!
  20. M O N E T I S I N G

    I N E S P O R T S C U R R E N T LY • Esport teams and organisations make money from selling branded apparel but mainly from partnerships, sponsorships, endorsements and winning tournaments • Esports service companies have more complicated own revenue models (microtransactions, revenue sharing, etc)
  21. I N C O N C L U S I

    O N Esports just like regular sports are fun, competitive and filled with passion.
 
 Thousands of aspiring and professional players, millions of fans and a plethora more of people putting their time and resource into building complementary services.
 Esports are rapidly gaining traction and will further accelerate as mobile games come into play along with virtual/augmented reality technologies are being developed. 
 
 Esports is set to become as big as regular sport if not larger.
  22. If you want to discuss further, have questions or just

    want to say hello, please DO reach out Email: [email protected] Twitter: @orliesaurus
  23. I M A G E C R E D I

    T S : 
 
 S L I D E 3 , 4 : P I O T R D R A B I K F R O M P O L A N D - G O Ś C I E I N T E L E X T R E M E M A S T E R S U P L O A D E D B Y YA R L , C C B Y 2 . 0 
 S L I D E 5 - E N D : F R E E LY AVA I L A B L E O N W W W. R E S P L A S H E D . C O M