E-SPORT CASE STUDY
How does Esport's business model work?
Esport's business model consists in carrying out video game competitions on a professional and multiplayer level. The competitions integrate different types of video games and have their own rules. Moreover, these types of competitions have a great impact and are held internationally, which is why many of them become very popular in the media and social networks. eSports has nothing to do with the gamification business model that integrate companies with challenges and mini-games to attract more customers and build customer loyalty.
Characteristics of the Esport business model
Does any online video game competition fall into the e-Sport category? The truth is that they do not and that it is necessary for these competitions to comply with a series of characteristics:
- The games should allow competitions between 2 or more playersTherefore, one-person games are not allowed.
- The competitions must be official and sponsored by companies and sponsors.
- They must have sufficient media coverage and must have enough fans participating in the event on the platforms that provide coverage of such events.
- Online competitions must have an appropriate official rules.
Who is part of the E-sport business model?
THE FOLLOWING PLAYERS ARE INTEGRATED INTO THE E-SPORT BUSINESS:
VIDEO GAME DEVELOPMENT COMPANIES
These companies, which are in charge of developing the video games, have a fundamental role in this business, and they too have had to adapt their strategy to this new modality of video game development. digital business model video games. In the past, companies designed and marketed video games in which the user competed against the computer or game console. It is now a online competitivenesswhere it is possible to interact with other players and create a community. Through the creation of competitions, companies earn revenue and the player base increases with the possibility of being able to win attractive prizes as well as popularity and even income by participating as professional players.
TOURNAMENT ORGANISERS
They are the promoters who are in charge of organise the games and bring together a large community of players.. These promotion companies will generate income from various sources such as registrations, advertising or ticket sales and will be in charge of the logistics and advertising.
PLAYERS
Undoubtedly the protagonists of this business model without which it would not be possible to carry it out. The age range of the players is usually wide (from 14 years old to 40 years old, generally, although there are exceptions) and within this group, players can range from professionals to semi-professionals or amateurs.
CLUBS
Within the world of Esport, there are clubs contracting players to participate in competitionsThey are paid a salary and promote their image on social media among other activities. They receive income both from sponsorship brands and through merchandising.
SPONSORS
They finance the tournaments and the players' salaries in exchange for advertising. More and more brands are participating in this type of event due to the importance and impact of this type of event. It is possible to find everything from beverage brands to car, food and telecommunications brands.
STREAMING PLATFORMS AND MEDIA
They are the place where the competitions take place and from where they are broadcast in real time. The best streaming platforms have large servers where thousands of people interact by watching the competition, these events can also be seen on social networks and even TV channels. In addition, newspapers and news programmes are involved in broadcasting and summarising the competitions.
ADVANTAGES OF THE E-SPORT BUSINESS MODEL
THE MOST SIGNIFICANT ADVANTAGES OF THIS E-SPORT BUSINESS MODEL ARE THE FOLLOWING:
- The Esport business is a booming business model which is growing and gaining more and more users.
- Encourages teamwork as it is necessary for all parties involved in this business model.
- A good gamer can earn a lot of money. This will make it more popular, and therefore all the actors involved in this business will gain from it.
DISADVANTAGES OF THE E-SPORT MODEL
LIKE ALL BUSINESSES, THERE ARE SOME ASPECTS OF THIS BUSINESS MODEL THAT MAY FALTER:
- The competitiveness is increasingly high Events must therefore be increasingly innovative in order to have an impact.
- For gamers in the business, spending so many hours in front of a screen and under pressure to play good games can lead to a lot of problems. physical and psychological problems in the medium to long term.
- Regular practice in this type of competitions can generate some "video game addiction"It is therefore advisable to have a balance and to combine it with other activities.
EXAMPLES OF COMPANIES USING THE E-SPORT BUSINESS MODEL
TSM
Team SoloMid is one of the best known companies in the world. He currently has a total of 6 titles in the North American championship of League of Legends (LCS). Nobody wants to miss the teams playing in the company's championships, real spectacles that attract spectators from all over the world.
CLOUD 9
The US organisation is made up not only of professional players from all over the world, but also of its own content creators, "streamers". Some of the most important competitions in which it participates are: Fortnite, League of Legends or World of Warcraft among others
TEAM LIQUID
This North American team stands out above all for being one of the companies that invests heavily in big signings, especially for the League of Legends championships. However, this company has other lines of business such as video production and content creation among many other activities.
