[0:00] what do you think of when you visualize
[0:01] a sports tournament
[0:03] a packed stadium fit athletes battling
[0:06] it out for glory
[0:07] for decades sports tournaments have
[0:09] generally been a staple in the lives of
[0:11] many around the world
[0:12] from fifa world cups to nba games and
[0:15] qriket tournaments
[0:16] sports have always been associated with
[0:18] physical activity
[0:19] however in the last decade there's been
[0:21] an exponential rise in a type of sport
[0:24] that has generally been overlooked and
[0:26] undermined
[0:27] a sport that anyone from any part of the
[0:30] world could take part in
[0:31] this is the story of the rise of esports
[0:36] gaming is the fastest growing form of
[0:38] entertainment globally
[0:40] on its current trajectory we estimate
[0:42] the esports market will generate
[0:44] 1.8 billion dollars in 2022
[0:47] and the video game market itself will
[0:49] generate around 190
[0:52] billion dollars the top esports
[0:54] organizations are worth more than 200
[0:57] million dollars according to forbes and
[0:59] those evaluations have been climbing
[1:01] steadily so the money behind the scenes
[1:03] is there but the revenue streams for
[1:05] esports organizations are complicated
[1:08] and complex but before we jump right
[1:10] into the numbers let's take a look at
[1:12] what esports
[1:13] are and what pushed them to their
[1:14] current heights
[1:16] esports is the term used to describe
[1:18] competitive gaming with massive
[1:20] tournaments in games like
[1:21] league of legends dota 2 rocket league
[1:24] fifa
[1:25] and many more the la times says 8
[1:27] million people log on
[1:29] every day to take part and yet for some
[1:31] of us it still feels somewhat foreign
[1:33] and underground culture even
[1:35] the most played right now is dota 2 with
[1:38] prize money well into the nine figure
[1:40] mark and attracting thousands of
[1:42] participants
[1:43] and related tournaments the top dota 2
[1:45] tournament called the
[1:46] international had a prize pool of 40
[1:49] million dollars in its latest
[1:51] installment
[1:52] so how do these esports teams work and
[1:54] how do they manage to raise this
[1:56] enormous amount of money
[1:57] let's take a look put simply esports are
[2:00] electronic sports
[2:02] organize competitive gaming events in
[2:04] various leagues with teams and players
[2:06] battling
[2:07] out for victory intel started pushing
[2:10] esports with the first intel extreme
[2:12] masters gaming tournament back in 2007
[2:14] at cebit worldwide viewership of esports
[2:18] competitions
[2:19] has helped push popularity into the
[2:21] mainstream to the point that
[2:22] intel has even tried to get esports
[2:24] officially recognised by the
[2:26] international olympic committee by
[2:28] bringing season 12 of the intel extreme
[2:30] masters
[2:31] to pyeongchang during the 2018 winter
[2:33] olympics
[2:34] event attendance at the big stadium
[2:36] competitions is increasingly on the rise
[2:38] as fans make an effort to watch their
[2:40] favorite teams compete
[2:42] but online viewing is increasing too a
[2:45] survey in china revealed 45
[2:47] of the adults there had watched esport
[2:50] at some point
[2:51] but what attracts so many people to this
[2:53] supposedly
[2:54] niche field james dean ceo of esl
[2:58] uk explains esports has no barrier to
[3:01] entry
[3:02] if you're a gamer you're a gamer if you
[3:04] want to step up your game and play in a
[3:06] competition
[3:07] you can do so if you're really great and
[3:09] you practice a lot you might be on a big
[3:11] stage winning a million dollars
[3:13] and that's open to everyone in the large
[3:15] part it's about making opportunities for
[3:17] anyone
[3:18] to do anything but where does this money
[3:21] come from
[3:22] like a lot of sporting events ninety
[3:24] percent of the revenue in esports
[3:26] is sponsorships and advertisements these
[3:29] revenue streams include sponsorships in
[3:31] exchange for advertisement on the
[3:33] player's jerseys
[3:34] similar to those of traditional sports
[3:36] for example the energy drink brand red
[3:38] bull and the smartphone company htc
[3:41] have jersey sponsorships for cloud9 a
[3:43] legacy esports team
[3:45] these sponsorships allow companies to
[3:47] gain nationwide recognition
[3:49] and potentially international
[3:50] recognition as well if the esports team
[3:52] qualifies for international tournaments
[3:56] in the digital age esports teams allow
[3:58] sponsors to target
[3:59] demographics that have been
[4:00] traditionally difficult to reach through
[4:02] standard marketing tactics
[4:04] millennials typically watch less
[4:06] television and listen to the radio less
[4:08] often than older demographics
[4:09] increasing the importance of social
[4:11] media marketing
[4:13] players and sponsors will typically
[4:15] collaborate on advertising campaigns
[4:17] dr pepper has a long history in esports
[4:19] gaming with partnerships dating all the
[4:22] way back to mlg in 2008.
[4:24] as such they know how to get a good
[4:26] response out of the esports audience
[4:28] and can serve as a case study for other
[4:30] brands who want to get involved
[4:32] in addition to the team soda mid ad dr
[4:34] pepper
[4:35] also received a lot of press by
[4:36] featuring tsm fortnite players on
[4:38] bottles of soda
[4:40] coupled with this is the merchandise
[4:41] sales of the team's jerseys and
[4:43] mostly gaming oriented items like
[4:46] controllers or mouse pads
[4:47] teams take various approaches such as
[4:50] the 100 thieves a new team formed in
[4:52] 2018
[4:53] which uses a hyper beast style of
[4:55] merchandising with high prices
[4:57] and limited quantity this has been very
[5:00] successful for them
[5:01] with apparel selling out within 20
[5:02] minutes of release
[5:04] in november 2017 former professional
[5:06] gamer matt nadeshot haig
[5:08] took to his youtube channel to announce
[5:10] that his apparel company 100 thieves
[5:12] received a multi-million dollar
[5:14] investment from cleveland cavaliers and
[5:16] quickened loans owner dan gilbert
[5:18] allowing him to expand into a
[5:20] full-fledged esports
[5:22] organization was funded by hip hop star
[5:25] drake
[5:26] and scooter braun who represents famous
[5:28] artists like justin bieber and ariana
[5:30] grande
[5:32] however merchandise will always be a
[5:34] comparatively lesser portion of the
[5:35] total revenue
[5:36] this is mostly due to the fact that
[5:38] fewer people watch esports tournaments
[5:40] in person at a stadium
[5:42] so they might not have the same
[5:43] dedication to purchase jerseys to show
[5:46] support like you would in other sports
[5:48] third
[5:49] we have content creation and streaming
[5:51] almost every serious gamer professional
[5:54] or amateur can stream on twitch to an
[5:56] audience of potentially millions every
[5:58] single stream
[6:00] this is a great way to get started and
[6:02] on the route to professional gaming
[6:04] with advertisement revenues on each view
[6:06] the teams can keep funding high quality
[6:08] videos
[6:09] teams like team liquid take this onto a
[6:11] higher level by partnering with one up
[6:13] studios
[6:13] an esports production company showing
[6:15] just how much care they put into this
[6:17] sector
[6:19] not only is this a source of revenue it
[6:21] attracts other people who like the game
[6:23] to your team
[6:23] and increases the fan base finally
[6:27] one of the most significant sources of
[6:28] revenue an indicator of how good the
[6:30] team is
[6:31] is the prize pools the winners receive
[6:33] at any tournament
[6:34] prize money in esports is increasing at
[6:37] an incredible rate
[6:38] while prize pools are mounted to a mere
[6:40] couple of thousand dollars at most in
[6:42] the past
[6:43] they now reach several million dollars
[6:45] for large competitions
[6:47] the winner of the 2019-14 world cup
[6:50] booger
[6:50] received three million dollars as a
[6:52] prize however what most don't realize is
[6:55] all the money
[6:56] often doesn't go to the players but
[6:58] instead to the team
[6:59] which is generally owned by someone else
[7:01] and the players are employees like in
[7:03] any other sports team
[7:05] however with the increase in viewership
[7:07] and the prize money there's a lot to be
[7:09] made as a player too
[7:11] how does one get started in this that's
[7:13] the best part
[7:14] the barrier to entry is very low all you
[7:17] need is a computer
[7:19] and an internet connection and the world
[7:21] is your oyster
[7:22] most games like dota 2 and league of
[7:24] legends don't even require
[7:26] too high of computer specs to get
[7:27] started so anyone can get started and
[7:30] play
[7:30] you can either take part in local
[7:32] tournaments that happen near you
[7:34] or play online and go up in rank anyone
[7:36] can stream for free on twitch and
[7:38] youtube to gain viewers and build a
[7:40] following
[7:41] esports are on the rise but they're
[7:43] still at an infant phase with respect to
[7:45] other well-established sports
[7:46] organizations in terms of viewership and
[7:49] money
[7:50] the best time to get into esports would
[7:52] be right now
[7:53] thanks to the internet while not
[7:55] everyone can make a full-time career out
[7:57] of it yet there's a lot there for some
[7:59] side money and grow to make it your
[8:01] full-time job if you get good at it
[8:16] you