namanchahal

[namanchahal]

Business Ideas & Opportunities in eSports:

Thinking of founding a startup and making yourself work for your dreams.

Well, eSports is one such industry you can target. It has seen immense growth over the years which is only expected to rise. As reported by Newzoo, Global esports revenues are expected to surpass $1 billion in 2020 for the first time. China is the largest market in terms of revenues followed by North America with total revenues of $385 million and $253 million respectively. The global esports audience is expected to grow to 495 million people in 2020.

Mobile gaming has further introduced new markets and opportunities. Games like PUBG Mobile and Garena Free Fire has taken the industry by storm. As a result, emerging esports markets will show the highest compound annual growth rate (CAGR 2018-23) with regions such as Southeast Asia (24% CAGR) and Japan (20% CAGR) among the highest.

This is also one such industry that did not get affected by Covid-19, instead, it has shown growth during this time of crisis.

So, let us explore the various business models that can be formed if you are thinking to enter the esports industry.

Paid Tournaments/ Custom Rooms: You can build a platform where tournaments, as well as individual battles, can be hosted. These tournaments could be free to enter or levy some entry charges. The winning prize is generally given from the lot collected after deducting the costs and margins. Companies using this business model- Toornament, Nodwin Gaming, GamingMonk, etc.

Fantasy Leagues:  Fantasy league is a common concept in traditional sports where people choose players and earn money based on the performances of the players selected. The same could be applied for eSports where users can put their money on the competitive players playing in major global eSports competitions. Companies using this business model- Sleeper, Blinkpool, Skrilla, etc.

Supplying in-game credits: People spend a lot of money in games they play from purchasing skins of weapons to vehicles and whatnot. However, each game uses its currency which is bought by real money i.e., dollars or rupees. You can contact these games and handle these operations while providing in-game currency at cheaper rates or more currency than provided by the game. Not only that, but you can also sell custom-made products used in the games. Companies using this business model- MidasBuy, PlayerUp, etc.

Organizing and Hosting tournaments: In 2019, around 875 global esports tournaments were held. The number is expected to increase in the coming years. The competitions held face many problems from the local parties ranging from LAN connectivity to hospitality. You can take contracts from the companies to organize and manage their esports tournaments on a large scale. Companies using this business model- Activate Entertainment LLC, ESL, etc.

Dedicated streaming platforms: YouTube and Twitch are the leading esports streaming platforms comprising the majority of the audience. However, now companies are entering this market segment targeting specific games for a specific audience and then gradually expanding. Companies using this business model- NimoTv, GuyaTv, RheoTv, etc.

Streaming from Mobile: As the popularity of mobile games is increasing, so is the streamers and audience for these. However, streaming mobile games from PC involves investment and complexities. Therefore, to make streaming from mobile possible, easy and convenient, new solutions are being provided to the market. Companies using this business model- Streamlabs, Omlet Arcade, Mobcrush, Kamcord, etc.

eSports Team/Streamer Sponsorship: You can also sponsor an esports team by providing them Bootcamp, devices, salaries, and a mix of all possible facilities to ensure they perform best to their capabilities in tournaments. Also, you can sponsor streamers and they will promote your brand regularly on their streams. Companies using this business model- Entity, Cloud9, Team Liquid, OnePlus, Logitech, etc.

Produce eSports Content and Merchandise: You can also produce a reality series based on esports and/or gaming entertainment content. Not only this, merchandise like limited-run streetwear apparel, such as a line of T-shirts, joggers, and hoodies can also be produced and sold to all the gamers out there. Companies using this business model- 100 THIEVES, Antstream Arcade, 1UP Gaming, etc.

Betting: Although betting is illegal in India, there are many countries where betting is allowed, providing huge opportunities to earn money. You can allow users to bet using real money or through in-app points which can be redeemed then for particular game purchases or gift cards, etc. Companies using this business model- Unikrn, Midnite, Dojo Madness, etc.

Marketing Agency: You can work with brands and streamers to promote their content popular platforms like Twitch. Brands will have an opportunity to reach millions of gamers and streamers will get paid to promote branded content on their channels. Companies using this business model- Ader, Scopely, Tinyclues, etc.

Managing Streamers: You can offer a complete suite of tools to be used by both community organizers and streamers to engage their audience in a better and efficient manner while transparently handling the donations made by the viewers. Companies using this business model- Matcherino, Fig, etc.

Recruiting agency: You can scout young talents for a competitive eSports team and make contracts with them. Companies using this business model- Stakrn Agency, GameRecruiter, etc.

News network: You can be an ESPN for esports by setting up a network that is the go-to place for 24/7 access to all online e-sports news and media. Companies using this business model- Estnn, esportznetwork, etc.

Community Building: You can create a platform where likeminded gamers can engage, communicate, share content, and find teammates to play with. Companies using this business model- Discord, Slack, TeamSpeak, etc.

Tickets selling: You can also acquire rights and sell tickets of major esports tournaments happening around you or even globally. Audience participation in the LAN events is continuously increasing making this an attractive opportunity. Companies using this business model- Stubhub, ESL Gaming, etc.

These are the few business models you can try and make work for you. You can choose either of these or a mix depending on your capabilities or you can create a whole new business model which no one has seen before distinguishing you from the rest and giving the first-mover advantage.