#024 - Esports Trends, Evaluations and Broadcasting Rights

with Ben 'Fishstix' Goldhaber (Independent Adviser)

Topics:

Background

  • Competitive gamer as a lifeline passion
  • Transition into full-time job
  • Early founding members of Twitch
  • Right when they were transitioning into Gaming

Present

  • Currently working as an Esports Consultant
  • To make it in esports traditionally, almost everybody started as a grass-roots
  • Where you built it yourself
  • The industry changing into more specialists as the industry expands. 

Are there likenesses between esports and the dot com bubble? 

  • ‘I hope that investors have a long-term scope’
  • There are more gamers than ever, every year there are more gamers.
  • The generation that grew up watching esports, when they have kids, they will teach their kids to watch esports
  • Evaluation of esports teams. There has always been this fear about teams being overvalued.
  • Huge over-inflation on Esports teams
  • If VC’s and investors have a long-time strategy
  • A lot more money raised 

Trends and Investment

  • Teams getting the most VC
  • Esports Start-ups
  • Franchising Fees
  • Stadiums
  • There are still a lot of areas to entry
  • Open-Leagues where anyone can play
  • CPL – Everyone knew about the competition
  • Big opportunities to getting people in the door to play
  • Fragmentation of the esports industry
  • Is there a pull-back coming on esports teams?
  • Esports almost died during the Global Financial Crisis (GFC)
  • There is so much more money in esports now
  • A lot of smaller teams are going to have a difficult to compete
  • There’s likely going to be a financial tightening, potentially effect smaller organisations
  • Non-endemics sponsors, slower to mature getting into esports
  • Esports is a buzz word
  • Almost cliché 18 – 35 demographics
  • Long learning process – higher risk entering esports marketing
  • Lower entry into 

Streaming and Rights holding

  • Broadcasting rights coming into esports
  • Broadcasting platforms fighting for you and your content
  • Twitch paying overwatch league 90Mill for broadcasting rights
  • Paying for exclusivity
  • Majority of esports content is free, not pay-per-view
  • The Tech Titans will potentially see alternate revenue streams
  • Facebook, Amazon, Microsoft, Caffeine 

Alternate revenue streams

  • Worldwide average esports fans ~$4
  • Average NFL ~$20
  • Monetization in the form of digital benefits
  • Additional subscriptions or visual items
  • Getting benefits for watching
  • Completely obsessed with Twitter and Reddit
  • Following all the right people to keep up-to-date
  • Understanding the entire esports industry can be hard to keep up with

In comparison to keeping up to date with sports

  • NBA
  • NFL
  • NHL

 Is there an over saturation, there used to be with games especially when in-house?

  • Under saturated for high quality esports content beyond the games themselves
  • Talk show about all the news of the week
  • Talked to the players, team owners
  • Some games have good talk shows
  • There’s no good way to find all the great content
  • There is fragmentation

Ben ‘FishStix’ Goldhaber

Subscribe to get notified of all future podcasts