The Triumph of Esports Business Model
Public television traditionally offers viewers major events free of charge. The Super Bowl, NBA Playoffs, and World Series make money for advertisers. With record production costs and advertising, the Super Bowl makes sensational news almost every year.
Merchandising revenue and the need to maintain that revenue in store is also an important issue. While approved suppliers of quality products like the NFL UK Store offer team support to fans, counterfeits are flooding the market.
Leagues and professional organizations are increasingly paying legal fees to combat counterfeiting and reproduction. Even as the tide of stakeholders grows, seemingly unwilling to pay for what they want.
Esports Rise Business Model
eSports products have an inherent advantage over traditional sports. Anyone can just buy a soccer ball or a basketball. Circles, gates and fields are even provided by local communities.The traditional sport is cheap to practice and the benefits go to professional organizations.
Although many of the most popular live esports games are available for free, they include some clever improvements.
A MOBA game like League of Legends or DOTA 2 is free to download. Players are given separate paths to expand the character roster and gameplay options, and can be purchased for real money by playing or speeding up the process.
These games also feature many costumes and player customization options that don’t add any functional benefit to the game other than throwing money at the parent companies. They do it beyond the most reasonable expectation. Esports also builds an audience by creating spectator modes and in-game replays to help players monitor their performance and improve, but it shows that transmission is needed.
With so much money coming from games alone, eSports lives under the umbrella of profit.Tournament broadcasts act like a giant advertisement for the main product. Freight and postage costs only accrue as revenue.
Then there’s the game: in recent years there has been an explosion of spectators and enthusiasts looking to put their knowledge to good use. The overall multinational nature of esports gives it an edge over traditional sports when it comes to who can participate and how fast.
