(reposted from my article http://www.rtsguru.com/article/2090/Making-eSports-Into-an-Industry-Giant.html)
So I was doing my doing my usual rounds of checking up on all the happenings within eSports; checking results, flipping trhough some vods, etc. when a really good rant on vVv's Loser's Bracket podcast got me thinking...
The rant was about monetizing eSports and how the standard business models for sports and entertainment somehow has failed to be implemented within eSports. Despite being fairly easy to regulate in terms of monetizing broadcasts, most big organizations still provide a free product the the majority of the viewers and rely on risky venture capital/ sponsorship deals to sustain themselves. There are a lot of issues with this but the larger problem is that as esports consumers we aren't doing enough to directly support the things we love.
If you want to listen to the rant (it's a bit long) you can do so HERE. It's about half an hour long but incredibly entertaining. It can probably be summarized as: high quality performances should be monetized. So pretty much, the large organizations which serve as focal points for gathering money and sponsorship should put some of that burden on the viewers, where it has a much smaller impact since it is so spread out. Having the 80,000 viewers that we see tune in to a stream pay $2 each is enough to demonstrate that eSports can have a sustainable business model. Currently most of the money is investment or sponsorship & ad revenue, which works for large TV networks because they are reaching an absolutely massive audience but even the less popular channels you have to pay for in addition to whatever cable package you have. For some reason, perhaps because of the mentality of the 'internet age' viewer base, most spectators feel that a free stream is a necessity and the organizations don't want to alienate the viewers even if it means weakening the business model.
This check could be ten-times that size with our help.
Now as it was brought up in the podcast, some organizations like the GSL have subscription models and are taking the right path to ensure that they continue to help Esports by making sure they continue to exist as long as the demand exists. However, they are essentially being undercut by other organizations who pay to produce a similar product, investing in production, high quality players, and setting up lan evironments/ festivals but not charging for the product.
Now Starcraft II is certainly seen as one of the flagships of eSports, partially due to our willingness to back the game we are passionate about. We support our documentaries, we show up en masse to tournaments, and we buy all kinds of nerd swag gear. But even with this, we aren't spending that much compared to fans of other sports. Tons of families have seasons tickets to their favorite/local baseball team or buy tickets a few times a year to see their NBA or NFL team play. Even assuming that a ticket is around $60, that's still higher than what many of us pay to watch most of the major tournaments that happen throughout the year. Now part of that responsibility is on us to make sure that we show our support in a more tangible way than just following our favorite pros on twitter. We should be making sure that everyone understands that there is a business behind eSports and that one cannot exist without the other.
But it's also the responsiblity of those businesses to both provide a quality product and then charge for that product. It's not that as a fan of esports you should just be throwing your money at things. You want the companies, the teams, the players, etc. to make you say "Shut up and take my money!" because it's a quality service you care about and you are more than happy to pay for it. I know that although MLG events and IPL's are expensive to go to, I am more than happy to attend (and have). I run the Top 200 KotH with my own money just because I am happy to contribute to the scene. But I know that on a large scale, there's no way I could do that safely without charging. So even while I enjoy having a free stream to watch some of the big tournaments I agree with the rant made. There just aren't any other examples of this kind of content being given away for free. I'd rather pay than have it be free for a year but not even exist the next.
Imagine how much money there'd be for everyone to earn if eSports was funded better.
One point that wasn't really discussed but that I got to thinking about is that while the Starcraft II touranemts are still using this business model, we have MOBA tournaments with massive prize pools because they are running off the micro transaction business model where are large portion of the customer base is actually continually contributing small amounts that together, allow for these invesments to continue. World of Warcraft is a muchbigger game in terms of revenue because of the monthy subscription and sheer number of players playing but I want everyone who plays Starcraft (or any eSport game that you' only paid a 1 time cost for) and just imagine how much could be done if all the players were putting even a small percentage what WoW or XBL players pay towards eSports each month.
So I guess it comes down to the community. We should be vocal about our willingness to support the amazing scene that has grown out of our love for these games. We should be looking at ways to put money into the things that we are getting something out of and we should be vocal about what kinds of additional things we want to see and pay for. I know I (and many others) would be whipping out a wallet if I saw a chance to buy a Slayers Jacket.
What things can you think of that you would be more than willing to pay and how do you think we can work together to make sure that Esports becomes a true professional industry?
