How do eSports Companies Make Money?

Either it is about purchasing one’s own eSports team or is it about acquiring majority stakes in this niche, there is certainly no doubt that the eSports market has been pitched as one of the leading and next global sporting sensation. No one desires to miss the opportunity either it is investing in it or earning from it or even betting in it, betting24.fi acknowledges the potential the market holds.

Currently, the top eSports organizations are worth USD 200 million as per reports shared by Forbes and as per the evaluation, the worth is expected to rise even more. eSports organizations are operating globally with a future return perspective. Investors after analyzing the potential growth of the industry are investing where short-term profits are being sacrificed and bigger returns are expected in the near future. But that doesn’t mean eSports organizations are at loss, they are just bringing in the cash by using different effective channels.

Sponsorships

The most famous and favorable way of earning in eSports is through sponsorships. The current worth of eSports is USD 1.1 billion in 2019, out of which USD 456 million is earned through sponsorship.

Since eSports is a leading video game platform with millions of people watching gaming videos and have higher watch hours, the organizations easily convince brands such as Nike, Red Bull, etc. to sponsor them where they guarantee the highest user engagement for their brand.

Advertising

The universal truth says, “Content is the King”. Hence, the sponsorships are just lucrative agents to smoothen a relationship, for its continuity, advertisement plays a vital role where the content matters the most.

To get exceptional ads, eSports organizations needs engaging and interactive content for its viewers. The success of the organizations lies in the content that is created and can capitalize on it to gain advertisements and time slots.

Arena Ownership and Sales of the Tickets

Many organizations own arena where the eSports events are held and then they make money from selling the tickets for the event. There are a massive amount of people who love to watch live video games being played among the eSportsteams while sitting in an arena. This is the time where the organizations earn, they sell the tickets to such video gaming enthusiasts.

Media & Broadcasting Rights

The media and broadcasting rights make nearly 20% of the eSports organizations revenue. Game developers and tournament organizers negotiate with the team owners and then earn media rights to record and broadcast the event on leading channels to earn revenue.

Merchandizing

Another most popular way of generating revenue is merchandising and providing accessories to the general public. Organizations make sweatshirts and other accessories that replicate to that of their favorite eSports team and the gaming enthusiasts purchase them to show their support.

Conclusion

With a pessimistic approach and clear vision, eSports organizations are making money and they are hopeful that soon they will earn in billions. Slow and steady always win the race and the eSports industry is booming and is yet to hit its peak.