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THE RISE OF
esports
FEBRUARY 2020
2
The Rise of esports
MITCH REAMES
WILL PARTIN
MAXWELL FOXMAN
DEMYSTIFYING MEDIA
Mitch Reames graduated with a degree in journalism from the University of Oregon
School of Journalism and Communication in 2017. He has written about emerging
technology and the esports industry for publications such as AdWeek, SportTechie, Blazer5
Gaming, and Dexerto, and is the founder of the Esportz Network podcast, which partners
with Reuters to report on the biggest stories in esports.
Will Partin is a doctoral student and graduate research assistant at the University of North
Carolina at Chapel Hill. His work focuses on the platformization of cultural production
within the realm of livestreaming, video games, and esports. His writing can be found in
such publications as The Atlantic, Variety, and Jacobin. He is also a consultant for Power
Play, a boutique consulting firm that helps brands find their place in the growing esports
market. Former clients have included Microsoft, AMC Networks, Tribeca Enterprise,
Madison Square Garden, and others.
Maxwell Foxman is an Assistant Professor of Media Studies studying games, play
and immersive media at the University of Oregon. His research centers around how
play manifests in non-game contexts, including social media, politics, and journalistic
institutions. His work explores the way media makers frame games and play in their
activities and professional lives.
The Hearst Demystifying Media seminar series was launched in January 2016. Curated
by Damian Radcliffe, the Carolyn S. Chambers Professor of Journalism at the University
of Oregon, it provides a platform for leading media practitioners and scholars to talk
about their work.
Through a combination of guest lectures, class visits, podcasts and TV studio interviews,
the series seeks to help students and faculty at the University of Oregon – and beyond – to
make sense of the rapidly changing media and communications landscape.
Previous speakers have come from a wide range of organizations, including the BBC,
Facebook, NPR and Vox, as well as leading academic institutions such as Stanford, Columbia,
Virginia and George Washington University.
Access the archive at: http://bit.ly/DemystfyingArchive
3
The Rise of esports
Whatareesportsandwhyaretheygrowing
so fast?
Mitch Reames
esports are quite simply competitive video
games. The ecosystem around it is much
like sports, where you have different titles
that are played by different demographics,
they’re popular in different areas.
Competitive video games have been around
in various forms since the 1970s, 1980s is
when they really began.
Maxwell Foxman
One of the reasons they’re growing so
quickly, particularly in this moment, is
investment by a lot of traditional media
companies, and by companies that would
be interested in traditional sports.
So you see brands like Nike and MasterCard,
you see a lot of these very name brands,
putting a lot of money behind the biggest
worldwide esports tournaments.
What’s the appeal for those brands?
Will Partin
Some of it is you go where the attention is.
One of the things that’s interesting about
esports, and I think of the last kind of
piece of the puzzle of why now, is that they
were this niche phenomenon for several
decades. And then around 2010, we start
to see this totally exponential growth year
after year.
Mitch Reames, Will Partin and Maxwell Foxman speaking at the University of Oregon
in February 2020.
4
The Rise of esports
And one of the really key things here is that
thisisthemomentwhenTwitchcomesaround
here’s a way you can distribute content
that’s not YouTube, it’s not preloaded stuff.
It’s distributing live content at a very cost
efficient rate that lets you actually broadcast
this stuff.
That gets you by a lot of the gatekeepers who
might previously have said, “Well we don’t
want video games. Get out of here.”
There had been live streaming platforms
around before, Ustream and stuff in the
2000s, but Twitch gave esports organizers
this really robust set of analytics.
And so now you could go to a sponsor and
say “Hey...” I can’t just tell you, here’s our
maximum viewership and here’s how many
people showed up in person and here’s a
couple of photos. Here is total hours viewed,
average amount each person stayed. This
whole rich suite that you can take to a
sponsor and say, “This is what we think your
sponsorship here is worth.”
Maxwell Foxman
Andsotosortofputthatinperspective,Iknow
that at least according to one statistic, an
average Twitch viewer watches something
like 90 minutes of original content per day.
So that’s like watching one soccer match per
day, every single day, every single day of the
week. And you can imagine how appealing
that is to so many people in various media
industries.
What’s the demographic for esports and
the appeal of this audience?
Mitch Reames
That demographic is one of the most difficult
to reach demographics we have, it’s very
young. It does skew male, although you
can reach both genders on platforms like
Twitch and depending on what various video
game you’re using, and it’s the cord-cutting
generation.
IT’S THE GENERATION
THAT IS NOT SEEING TV
ADS ANYMORE, THAT’S
USING AN AD-BLOCKER
ON ONLINE DIGITAL
ADS. SO, INCREASINGLY
ESPORTS ARE BECOMING
A WAY, AND BRAND
PARTNERSHIPS IN ESPORTS
EVENTS ARE BECOMING
A WAY TO REACH THIS
DEMOGRAPHIC THAT IS
REALLY ONE OF THE MOST
DIFFICULT DEMOGRAPHICS
TO REACH.
5
The Rise of esports
And of course this is a global phenomenon;
and one that is particularly prominent in
parts of Southeast Asia.
Will Partin
We’ve mentioned already that there is this
longer history going back a few decades in
esports, and across the world esports have
grown, but they’ve grown at different rates
and at different times. And a lot of that has
to do with the particularities of each country
and each region’s history.
I really like the example of the first place it
really takes off and becomes sort of a self-
sustaining industry is South Korea and this
is in the early 2000s.
And I really like this story because I think it
speaks to how esports tie in with all other
kinds of questions about tech infrastructure
and national policy and media and so forth.
Because there’s this huge financial crisis that
happensinAsia,the1997Asianfinancialcrisis.
It impacts all Southeast Asian countries, but
in particular South Korea, and one of the
ways the government there responds is by
putting all of this money down into creating
a national broadband network.
And so now you have this new broadband
network, you have a large number of
underemployed young people. And you also,
because of the longstanding ban on Japanese
goods, you don’t really have consoles in
South Korea.
Mitch Reames and Will Partin.
6
The Rise of esports
So there’s no PlayStation, there’s no
Nintendo; that means most people are
playing PCs. And so all of a sudden there’s
this huge swath of young people playing
PCs, and they’re playing this game, StarCraft,
that has this amazing competitive... It’s just
very well designed. And all of a sudden, that
becomes a status symbol if you’re really good
at it, people recognize you for that.
And so it’s sort of out of this primordial soup
of all these factors that a bunch of Korean
nationalcorporationsrecognize.“Hey,there’s
something here, we could do something with
this.” And so they build up very quickly a
whole infrastructure around it. They give it
a TV channel, they give it sponsorships, they
sortofremakealotoftheplayerswhogofrom
being kind of scruffy nerds into very carefully
curated public images almost overnight.
It’s a precursor of what’s to come elsewhere,
but it sort of happens there for this very
specific set of reasons.
Maxwell Foxman
It provided also a platform for a lot of
companies that we would recognize today.
So this was a place where Samsung and LG
could show off their goods to some degree.
It is worth noting that when we look across
different teams, the biggest teams in esports,
we’re looking at a really global crop of people
in the same way that you might see in
professional soccer, a non-European playing
in a European league.
You can look at the Overwatch League today
and it is dominated by people... A New York
team might not have many Americans in it,
or so on and so forth.
Can you give us a sense of how big this
market is?
Mitch Reames
The best numbers we have on the esports
revenue come from Newzoo, although they
are not perfect numbers and that’s been
highlighted in previous reports, but I’ll use
their numbers here because I believe it’s the
best that we have.
But esports is a very small fraction of that
games audience and the sports leagues are
driven by revenue that goes into the games
themselves, not necessarily the esports
scene, right?
It doesn’t make money on their League of
Legends scene, they make money on the
game, selling skins in the game and then they
push that into esports.
THIS YEAR GLOBAL REVENUES
FOR ESPORTS, ACCORDING
TO NEWZOO, ARE PROJECTED
TO TOP $1 BILLION. AND
SO THE REVENUE IS THE
BIGGEST MISSING PIECE OF
THE PUZZLE IN ESPORTS, IT’S
STRUGGLED TO MONETIZE;
THE WIDER GAMES INDUSTRY
IS ABSOLUTELY MASSIVE,
BIGGER THAN MUSIC AND
MOVIES COMBINED.
7
The Rise of esports
Now ideally these are mutually beneficial,
and the esports league becomes a part of
fandom and pushes people back into playing
the game and spending money on the game.
That’s how this works in an ideal world, but
right now revenues for esports are lower
than the output, and the main draw is the
massive audience. Because just like social
media startups, as long as you’re having
a bunch of users and a bunch of eyes, you
have value, even if you’re not necessarily
monetizing that perfectly yet.
How do you monetize that better and
more effectively?
Maxwell Foxman
Well, what’s interesting I think on that front,
and this goes to the Newzoo numbers as
well, is that a good chunk of that revenue
is coming from investment. So you do
have many brands, many different types
of investors, including traditional sports
leagues investing into esports. And that’s
in many ways driving the direction that the
companies and publishers making esports
are imagining what their products can do.
What’s really interesting is esports treads
align that I think you might not see in
traditional sports between media company
and competitive gaming companies. So
there’s, for instance, Riot Games does many
different types of media partnerships, where
they’re working with Marvel comics to make
a comic, there’s a Netflix TV show about
League of Legends.
Maxwell Foxman.
8
The Rise of esports
And so these sorts of strategic media
partnerships, that we might think is much
more common in the film industry, we’re now
seeing game companies entering too. And
I think that’s one of the things driving this
investment that we’re seeing
Star players can make a lot of money,
right? Seven figure salaries, there’s a lot
of competition to get them to play on
your team.
Will Partin
For a really elite player... Their revenue
pie is going to include prize winnings,
it’s going to include salaries, it’ll include
endorsements, and then maybe they’re
also streaming on the side.
This varies a little bit from game to game, I
think one of the most interesting things to
me is how each esport almost has its own
kind of economy and the way it works.
So a game I care about very much, Dota;
salaries are not necessarily very good,
but it has the highest payout in terms
of prize pools. So the prize pool for its
kind of version of the Superbowl, the
international, was $34 million last year.
Just enormous, right? And so if you go to
esportsearnings.com and you look up who’s
won the most money in esports, 48 of the top
50 players are Dota players.
Madison Square Garden hosted the League of Legends World Championships in 2016.
(Photo via Carl Scheffel/MSG Photos)
9
The Rise of esports
And you might say, “Well that means that
Dota has the most money.” That’s not actually
true, because League of Legends is a much
more robust and mature ecosystem. But it’s
a place where people are not necessarily
taking home lots of prize money, but it is
somewhere where salaries are probably three
or four times bigger than they are in Dota, at
least.
Maxwell Foxman
And well it might be worth explaining how
that prize pool is actually collected, because I
think it gets back to Mitch’s point about sort
of fan investment.
Will Partin
Definitely, so part of why the Dota prize pool
is the way it is, is because it’s crowd funded.
So every single year, Valve, the company that
publishes Dota 2, says the International’s
going to happen in August and we’re going
to put out this book called the compendium.
It’s a digital book, it has all kinds of goodies,
virtual goods, little games, announcer packs,
music packs, whatever; this all Dota themed.
And as you put money into it, it levels up the
book, and so a portion of that money then
goes to the prize pool.
So, that means that valve is actually probably
clearing $150 million just on running this
event. And that’s very much how that
company works, its entire business model
is built on externalizing and keeping a very
small labor force at home.
People can watch esports online by going
ontoserviceslikeTwitch.Butifyouputinto
a Google image search, “esports or esports
competition,” you’re probably going to
see a picture of thousands of people in a
stadium watching people playing. Can you
say a little bit about these physical events?
Mitch Reames
I think esports events are the most
importantthingforsomebodywhodoesn’t
understand esports to attend, because it
really materializes what this is.
I’ve grown up going to sporting events my
entire life, I would tell almost every single
Duck game I could too. League of Legends
Worlds in Paris was the most rabid crowd I
have ever been a part of and it wasn’t even
particularly close.
It’s this electric energy around it and all it
takes is somebody to go into that crowd one
time and be like, “Okay, yeah, this is massive.
There’s a huge opportunity here and we need
to be a part of it in some way.”
THESE EVENTS ARE SO ACTIVE
AND IT’S SO RARE TO BE ABLE
TO ATTEND AN ESPORTS EVENT
IN MOST CASES THAT WHEN
THESE FANS FINALLY GET A
CHANCE, USUALLY IT’S ONE
OF THEIR FIRST COUPLE OF
TIMES THEY’VE BEEN ABLE TO
ATTEND, AND THEY ARE JUST
GOING ABSOLUTELY BONKERS.
10
The Rise of esports
There’s a pretty famous esports article on
how the NBA involvement in esports began
from Jacob Wolf. And it started when League
of Legends held their world final at Madison
Square Garden in 2015, and Adam Silver and
some of the other NBA who’s who attended
that.
And no surprise after, a bunch NBA teams
invested in League of Legends, they started
the NBA 2K League.
Maxwell Foxman
I actually went to an esports event at
Madison Square Garden and it was truly
electric.
From just a practical standpoint for those
that need to imagine it, you’re looking at
events that are styled often like the World
Cup, in that they are held for either a couple
of weeks.
But they’re in a location where the actual
competitions are players on stage. So, they
areliterallyelevatedabovethecrowd,youcan
see big screens behind you where the action
is taking place, there’s often commentating.
And I think one final point, and this is
something that’s been emphasized I think to
all of us, is that the companies are as much
interested in that digital viewing as they are
the live events.
So much of what’s built into the spectacle,
you expect to watch on Twitch, you expect to
have watched on your computer, and that’s
actually the first audience.
And then those rabid fans are just adding
some fuel to the fire and adding some
special magic to it. But, it really is an event
that if you want to experience the first
place is go online.
We’re seeing huge amounts of investment
in this space. You’ve touched on examples
of traditional sports organizations that
have invested. We’ve seen the creation of
special stadia dedicated to physical events
in places like Dubai and Istanbul. Why is
esports having a moment now?
Will Partin
One thing I’m really interested in is finance
and the role that finance plays in this
ecosystem. esports are not separate from
big changes that have happened in who gets
financed and at what level.
One of the things that happens, coming out
of the 2008 recession, is that interest rates go
almost to zero. And also in order to really spur
spending, one of the things the government
and the federal reserve does, is buy a huge
amount of bonds back from investors.
A BUNCH OF NBA OWNERS
STARTED ESPORTS
ORGANIZATIONS THAT ARE
SOME OF THE LARGEST IN
THE WORLD. ALL IT TAKES IS
GOING TO ONE OF THOSE
EVENTS, AND YOU’RE
IMMEDIATELY HIT WITH THE
SCALE AND THE IMPORTANCE
OF ESPORTS.
11
The Rise of esports
And in theory, this releases a bunch of money
that can then go be put into new investments,
and in theory ones that are probably slightly
riskier than just buying bonds.
That’ssortofthemacro-economicbackground
behind the tech boom of the 2010s, and so
it’s that same dynamic that says, “Hey, let’s
put some money into esports. Who knows if
it’ll work out or not.”
Maxwell Foxman
A cautionary tale, but not necessarily a
negative cautionary tale, is that gaming
traditionally has led the way in terms of how
to finance media and tech.
So in other words, games were one of the
first places where you can see really that
subscription model that is so normal to
something like Netflix, occurring and
finding a real consumer base.
What I’m excited about, and what I’m always
thinking about, is when you start to see
the sort of convergence of media, sports,
gaming, tech happening at such a grandiose
level with some of the game publishers that
we’re talking about with these games, that
bodes at least in my mind for similar trends
that we might see and are already starting to
see across other forms of media.
Mitch Reames and Will Partin.
12
The Rise of esports
So, for me there’s a lot of connections
between something that we’re seeing with
Disney+, how it’s built, how it’s interacting
with other intellectual property, and what
we’ve already seen companies like Riot and
Epic doing.
I think you can learn a lot from the steps that
these esports companies are taking.
Mitch Reames
On the investment front, one of the big
draws is the absolutely skyrocketing value
of sports franchises.
In the last 10 years, the sports franchises...
You can pinpoint the moment, it’s when
the Clippers were sold. The previous record
high for an NBA franchise was 595 million
for the Milwaukee bucks. The Clippers, due
to a racist story that came out from Donald
Sterling, forced him to sell the team. It’s a
good team, and a major market, and it sells
for $2 billion. The second that sale happens,
it jumps the value of every other sports
organization because now you have a market
price for this, it’s almost four times as high as
the last sale.
And so that happens, and it also skyrockets
all these other valuations. Then you see that
you have this esports thing where you can
get into esports on the ground level for
pennies, compared to what it costs to get
into sports. And people just see it as an
awesome investment opportunity, given
the consistent growth of sports franchises
and basically every single major sport.
And so esports is now that same thing, it’s
why we see a bunch of sports owners get
involved into it because it’s a small price to
pay that could pay massive dividends in the
future.
What are the key implications for brands,
media companies and journalists with the
growth of esports?
Will Partin
One story I really like is about an ad
campaign from Arby’s, the fast food
restaurant chain.
To preface this a bit, this is a story about how
you can actually adapt your brand... Esports
is a culture, and it’s self-regulating in some
ways, in like what’s acceptable, what’s not.
And a lot of the fans are keenly aware that
they’re sitting on a gold mine, basically.
And that a lot of people are going to try to
capitalize on it, and that not all of them may
or may not have good intentions.
So a lot of times people talk about the
authenticity of this culture, which is a word I
have issues with, but I think there’s definitely
some truth to it.
AND SO WHAT ARBY’S DID HERE,
AND IT’S BIZARRE, BUT THEY WERE
SPONSORING A TOURNAMENT
CALLED ELEAGUE, WHICH IS A
COUNTER-STRIKE TOURNAMENT,
WITH TERRORISTS, COUNTER-
TERRORISTS, GUNS, ETC.
AND WHAT THEY DID IS THEY GOT
A COUPLE OF THE PLAYERS FROM
THE LEAGUE, AND TOOK THEM
OUT TO A SHOOTING RANGE, AND
JUST HAD THEM, WITH ASSAULT
RIFLES, SHOOT SOME ARBY’S
SANDWICHES AND THEY HAD A
HIGH SPEED CAMERA OUT.
13
The Rise of esports
I’m trying to imagine the meeting with the
Arby’s executive, where some ad agency
comes in and says, “We’re going to shoot the
sandwiches.” But esports fans loved this, and
it was a huge...
I think a real lesson for that brand of like,
“Get a little bit out of your comfort zone.”
It kind of created this massive buzz and
hype; I’m still talking about years later.
Mitch Reames
esports has the highs and lows of brands in it,
which is one of the coolest things.
If you do it well, like that Arby’s thing, it pays
massive dividends and they love you for it,
they’ll carry your brand onto social media for
you, they’ll carry it into Twitch chat for you.
Now if you do it poorly, like you said,
that authenticity thing, it comes up every
single time you talk to anybody who’s ever
advertised in esports, but it does actually
matter. If you come in, slap a logo on
something, and people start making memes
out of your content...
Here’sagoodexampleaboutthememething;
Mercedes sponsored an ESL tournament a
ways back. The S class was what they were
trying to advertise, and Twitch chat made
it a whole meme, and they were kind of
getting roasted a little bit, they didn’t feel
like they belonged in this space.
Newzoo’s 2020 Global Esports Market Report projects revenues
to exceed $1B USD in 2020.
14
The Rise of esports
And at the very end, Mercedes tweeted
something out showing that they heard
Twitch chat and they had this S class thing
and it involved one of the players. I can’t
remember the entire details, but it went
super viral. It had 40,000 likes, and it gets to
a key thing, which is embrace the meme.
They’re going to meme your brand, and
as long as you’re ready for that... And it’s
something that we’re seeing a lot of fast food
brands do on Twitter as well, with Wendy’s
snarky social media.
That’s the kind of thing that works in the
esports audience, and if it works, it really
works well, but it’s a dangerous place for a
brand that doesn’t understand the space as
well.
Maxwell Foxman
What I really like about these two examples,
in terms of lessons to be learned, is that
there’s no question that if you’re a brand, a
major worldwide brand, you have probably
already looked at competitive gaming. If
you’re a growing brand, it might be worth
looking to competitive gaming.
Similarly, if you’re a news outlet, there’s
reason to think that this is an important
beat that should be covered. Probably the
best example of this is looking at what the
Washington Post has done recently with
Launcher, which Will has done some writing
for.
Is that the biggest misconception that you
want to shatter?
Maxwell Foxman
Well, I think to that point, the myth that I
think needs to be shattered is thinking that
gaming publishers are not approaching
their product with the same finances
and perspective that a traditional media
company, like a Disney, like an ABC, like a
Fox, approaches their product.
These are large companies with so
many different types of creative talent,
programmers, PR, communications, et
cetera, and they approach their product in a
very, very similar manner.
The cultures are different, but we can say the
same thing about any sort of entertainment
culture.
BUT THE FACT OF THE MATTER
IS THAT WE’RE REALLY
LOOKING AT SOMETHING
THAT CONTINUES TO BE
FRAMED OFTEN BY THE
MEDIA AS BEING NICHE
OR BEING OUTSIDE OF THE
NORM, WHEN ALL THESE
EXAMPLES JUST POINT TO
HOW NORMALIZED GAMING,
AND THEN AS A SIDE NOTE,
COMPETITIVE GAMING.
15
The Rise of esports
AndsopartofwhatIthinkaudiencemembers
should take away from this also is to try to
understand that culture sort of in its totality.
You’vetouchedonsaying,brands,ifthey’re
not already looking at this space, then they
should be. What about for students in a
journalism and communication school?
How should they be thinking about this
sector?
Mitch Reames
As a fairly recent grad of this school, the best
thing about working in esports is that big
newsrooms don’t have somebody in it.
I would not be at AdWeek two and a half
years after graduating, if I wasn’t the guy
who could report on esports. That was my
“in”, writing about violence in games and
brands on Twitch.
There are very few 35 year old’s that
understand esports and most of them that
are, are in VP roles, or something like that.
You have people like Ryan Wyatt, who was a
caster for Call of Duty, now he’s the head of
gaming for YouTube.
It’s these kinds of success stories that you
see from very young people in their twenties
that I think is a huge reason why students
should care about this, because it’s a
massive opportunity to do work that even
you wouldn’t be able to do normally.
I came out of the sports broadcasting
program and I wanted to go do esports. Now
that esports has led me back to sports; I’ve
done articles on Shaquille O’Neal that are
completely separate from esports, and it
was not something I would have gotten to
without esports.
So I think that’s another misconception is
that you’re choosing one or the other, in
reality the esports and sports circles have
a ton of overlap, and you end up doing both
even if your specialty becomes esports.
Will Partin
There’s a particular kind of paragraph that
occurs in a lot of legacy meeting writing
about esports. I don’t have a name for it, but
I should come up with one.
The reporter is in the venue and there’s all
this stuff, there’s people competing, there’s
people cheering…. but it’s a video game. This
has been done like 10,000 times and I get why
they do it, but it’s an interesting thing where
a lot of legacy media reporters when they
come to esports spend a lot of their word
count justifying why this is important.
THEY DIDN’T UNDERSTAND
THIS SPACE, AND THEY
NEEDED SOMEBODY WHO
DID. AND THAT’S TRUE FOR
A LOT OF PUBLICATIONS,
A LOT OF MAINSTREAM
PUBLICATIONS, SO FOR
YOUNG STUDENTS IN A
VARIETY OF AVENUES,
ESPORTS OFFERS AN
OPPORTUNITY TO DO
SOMETHING THAT DOESN’T
HAVE NEARLY AS MANY
GATEKEEPERS IN THE WAY.
16
The Rise of esports
And that’s something I try to push back
against when I do writing for these kinds of
publications, where I don’t have to throw in
three paragraphs of stats about revenues,
numbers, whatever, you show it.
And you show it through the story, you show
it through the content that you’re actually
creating. And one, it spares you this totally
cliched thing that every esports fan looking
at it is going to roll their eyes at. But two, I
think it also spurs you to do more show don’t
tell, and that’s just good writing.
Maxwell Foxman
If you look at the history and scholarship of
game journalism, this is a longstanding trend
of this kind of explainer paragraph, explainer
story, vilification or praise of video games
that has existed now for easily 20 to 30 years
of game coverage. So I credit both of you for
going beyond that traditional mode.
One of the things I like to emphasize to
my students is, you can take something
like Twitch and start to think about how it
might have applications beyond gaming to
traditional reportage.
I also think that you can see the making
of a virtual environment becoming an
increasingly normalized. And so the ability
to actually work within and use 3D objects
interaction with objects in a meaningful way
is something that you can see most major
outlets have experimented with, whether
it’s with virtual reality, augmented reality, or
even just making traditional news games.
SoIthinkthattheseareinterestinginnovative
skills that whether you’re covering esports or
not, you can transfer into your next media
profession.
How do you see this sector evolving? What
should we be keeping an eye on?
Mitch Reames
I’d say the biggest advancement is going to
be mobile technology. Mobile esports are
the biggest growth sector, and what they’re
also going to do is they’re going to globalize
esports.
This is already a global industry, but mobile
is way more accessible to underdeveloped
regions.
Right now, a huge push in esports is into India
in the game PUBG mobile, especially. It’s the
biggest game in India, and there’s 1.3 billion
people in India, something like that. That’s a
big market that is now adopting esports and
that’s also true for South America, I think we
see that more in Africa as well.
ONE OTHER THING THOUGH
THAT I THINK IS A GOOD
LESSON FOR STUDENTS
COMING INTO THE J
SCHOOL, IS A LOT OF WHAT
WE CAN SEE IN ESPORTS
AND ESPORTS COVERAGE,
ACTS AS BELLWETHERS AND
TRANSFERABLE SKILLS FOR
THE NEXT GENERATION OF
REPORTERS AND MEDIA
MAKERS.
17
The Rise of esports
Mobile technology is so accessible that
it allows a whole new group of people to
become a part of esports where they don’t
have to get a high quality gaming PC. They
don’t need an Xbox or PlayStation, they
have a mobile phone, they can play games
on it, and suddenly the esports scene
around mobile games, is progressing very
quickly.
We went from mobile games being very bare
bones, Candy Crush, your tap and plays, to
Battle Royale, which is a hundred unique
players loaded into one server all loaded at
once while you’re doing complex controls.
So that’s how far mobile has gone, and that’s
only going to keep growing and networks
are only going to keep reaching new places,
so I think mobile esports is the huge growth
potential.
Maxwell Foxman
I’m really interested, on the U.S. side,
about the deepening of infrastructure and
institution that is happening with esports.
The expansion of leagues, to the college and
high school level in particular, and the way
that that’s being supported by publishers, is
something that I’m definitely going to keep
an eye on.
And it’s something that’s happening here
at the University of Oregon, but it’s also
something that you can see at local high
schools, local malls etc.
Will Partin
Like Max [I am] certainly, very interested
in the way that esports will continue to
increase its integrations with legacy media
institutions, be those sports firms, be those
traditional media conglomerates.
But also part of the story to me is thinking
about the growing ambitions of the
IT sector as a cultural industry. This is
certainly expressed in all of the rush to
create first party content from groups like
Apple and Amazon and so forth.
And we see one of the stories from the
last month is that Google bought away the
broadcast rights for Overwatch League from
Twitch/Amazon.
And part of the appeal of that is it didn’t just
come with the broadcast rights themselves,
which are now on YouTube. It also came with
a deal that brought all of Activision-Blizzard’s
games onto Google Cloud instead of Amazon
Web Services. So this is a really interesting...
This is a media conglomeration question,
but it’s a slightly different media
conglomeration because Disney, as far as I
know,isnotoutheresellingcloudservers…
not yet. But that becomes very interesting
[to] me, how do these tech firms act when
they are these vital figures and making
monetizing and distributing culture?
Watch full talks from the series on
YouTube
In a hurry? Catch the key lessons in these
TV Studio Q&As
Listen to the Demystifying Media podcast
on iTunes, Spotify and SoundCloud

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Demystifying Media: The rise of esports

  • 2. 2 The Rise of esports MITCH REAMES WILL PARTIN MAXWELL FOXMAN DEMYSTIFYING MEDIA Mitch Reames graduated with a degree in journalism from the University of Oregon School of Journalism and Communication in 2017. He has written about emerging technology and the esports industry for publications such as AdWeek, SportTechie, Blazer5 Gaming, and Dexerto, and is the founder of the Esportz Network podcast, which partners with Reuters to report on the biggest stories in esports. Will Partin is a doctoral student and graduate research assistant at the University of North Carolina at Chapel Hill. His work focuses on the platformization of cultural production within the realm of livestreaming, video games, and esports. His writing can be found in such publications as The Atlantic, Variety, and Jacobin. He is also a consultant for Power Play, a boutique consulting firm that helps brands find their place in the growing esports market. Former clients have included Microsoft, AMC Networks, Tribeca Enterprise, Madison Square Garden, and others. Maxwell Foxman is an Assistant Professor of Media Studies studying games, play and immersive media at the University of Oregon. His research centers around how play manifests in non-game contexts, including social media, politics, and journalistic institutions. His work explores the way media makers frame games and play in their activities and professional lives. The Hearst Demystifying Media seminar series was launched in January 2016. Curated by Damian Radcliffe, the Carolyn S. Chambers Professor of Journalism at the University of Oregon, it provides a platform for leading media practitioners and scholars to talk about their work. Through a combination of guest lectures, class visits, podcasts and TV studio interviews, the series seeks to help students and faculty at the University of Oregon – and beyond – to make sense of the rapidly changing media and communications landscape. Previous speakers have come from a wide range of organizations, including the BBC, Facebook, NPR and Vox, as well as leading academic institutions such as Stanford, Columbia, Virginia and George Washington University. Access the archive at: http://bit.ly/DemystfyingArchive
  • 3. 3 The Rise of esports Whatareesportsandwhyaretheygrowing so fast? Mitch Reames esports are quite simply competitive video games. The ecosystem around it is much like sports, where you have different titles that are played by different demographics, they’re popular in different areas. Competitive video games have been around in various forms since the 1970s, 1980s is when they really began. Maxwell Foxman One of the reasons they’re growing so quickly, particularly in this moment, is investment by a lot of traditional media companies, and by companies that would be interested in traditional sports. So you see brands like Nike and MasterCard, you see a lot of these very name brands, putting a lot of money behind the biggest worldwide esports tournaments. What’s the appeal for those brands? Will Partin Some of it is you go where the attention is. One of the things that’s interesting about esports, and I think of the last kind of piece of the puzzle of why now, is that they were this niche phenomenon for several decades. And then around 2010, we start to see this totally exponential growth year after year. Mitch Reames, Will Partin and Maxwell Foxman speaking at the University of Oregon in February 2020.
  • 4. 4 The Rise of esports And one of the really key things here is that thisisthemomentwhenTwitchcomesaround here’s a way you can distribute content that’s not YouTube, it’s not preloaded stuff. It’s distributing live content at a very cost efficient rate that lets you actually broadcast this stuff. That gets you by a lot of the gatekeepers who might previously have said, “Well we don’t want video games. Get out of here.” There had been live streaming platforms around before, Ustream and stuff in the 2000s, but Twitch gave esports organizers this really robust set of analytics. And so now you could go to a sponsor and say “Hey...” I can’t just tell you, here’s our maximum viewership and here’s how many people showed up in person and here’s a couple of photos. Here is total hours viewed, average amount each person stayed. This whole rich suite that you can take to a sponsor and say, “This is what we think your sponsorship here is worth.” Maxwell Foxman Andsotosortofputthatinperspective,Iknow that at least according to one statistic, an average Twitch viewer watches something like 90 minutes of original content per day. So that’s like watching one soccer match per day, every single day, every single day of the week. And you can imagine how appealing that is to so many people in various media industries. What’s the demographic for esports and the appeal of this audience? Mitch Reames That demographic is one of the most difficult to reach demographics we have, it’s very young. It does skew male, although you can reach both genders on platforms like Twitch and depending on what various video game you’re using, and it’s the cord-cutting generation. IT’S THE GENERATION THAT IS NOT SEEING TV ADS ANYMORE, THAT’S USING AN AD-BLOCKER ON ONLINE DIGITAL ADS. SO, INCREASINGLY ESPORTS ARE BECOMING A WAY, AND BRAND PARTNERSHIPS IN ESPORTS EVENTS ARE BECOMING A WAY TO REACH THIS DEMOGRAPHIC THAT IS REALLY ONE OF THE MOST DIFFICULT DEMOGRAPHICS TO REACH.
  • 5. 5 The Rise of esports And of course this is a global phenomenon; and one that is particularly prominent in parts of Southeast Asia. Will Partin We’ve mentioned already that there is this longer history going back a few decades in esports, and across the world esports have grown, but they’ve grown at different rates and at different times. And a lot of that has to do with the particularities of each country and each region’s history. I really like the example of the first place it really takes off and becomes sort of a self- sustaining industry is South Korea and this is in the early 2000s. And I really like this story because I think it speaks to how esports tie in with all other kinds of questions about tech infrastructure and national policy and media and so forth. Because there’s this huge financial crisis that happensinAsia,the1997Asianfinancialcrisis. It impacts all Southeast Asian countries, but in particular South Korea, and one of the ways the government there responds is by putting all of this money down into creating a national broadband network. And so now you have this new broadband network, you have a large number of underemployed young people. And you also, because of the longstanding ban on Japanese goods, you don’t really have consoles in South Korea. Mitch Reames and Will Partin.
  • 6. 6 The Rise of esports So there’s no PlayStation, there’s no Nintendo; that means most people are playing PCs. And so all of a sudden there’s this huge swath of young people playing PCs, and they’re playing this game, StarCraft, that has this amazing competitive... It’s just very well designed. And all of a sudden, that becomes a status symbol if you’re really good at it, people recognize you for that. And so it’s sort of out of this primordial soup of all these factors that a bunch of Korean nationalcorporationsrecognize.“Hey,there’s something here, we could do something with this.” And so they build up very quickly a whole infrastructure around it. They give it a TV channel, they give it sponsorships, they sortofremakealotoftheplayerswhogofrom being kind of scruffy nerds into very carefully curated public images almost overnight. It’s a precursor of what’s to come elsewhere, but it sort of happens there for this very specific set of reasons. Maxwell Foxman It provided also a platform for a lot of companies that we would recognize today. So this was a place where Samsung and LG could show off their goods to some degree. It is worth noting that when we look across different teams, the biggest teams in esports, we’re looking at a really global crop of people in the same way that you might see in professional soccer, a non-European playing in a European league. You can look at the Overwatch League today and it is dominated by people... A New York team might not have many Americans in it, or so on and so forth. Can you give us a sense of how big this market is? Mitch Reames The best numbers we have on the esports revenue come from Newzoo, although they are not perfect numbers and that’s been highlighted in previous reports, but I’ll use their numbers here because I believe it’s the best that we have. But esports is a very small fraction of that games audience and the sports leagues are driven by revenue that goes into the games themselves, not necessarily the esports scene, right? It doesn’t make money on their League of Legends scene, they make money on the game, selling skins in the game and then they push that into esports. THIS YEAR GLOBAL REVENUES FOR ESPORTS, ACCORDING TO NEWZOO, ARE PROJECTED TO TOP $1 BILLION. AND SO THE REVENUE IS THE BIGGEST MISSING PIECE OF THE PUZZLE IN ESPORTS, IT’S STRUGGLED TO MONETIZE; THE WIDER GAMES INDUSTRY IS ABSOLUTELY MASSIVE, BIGGER THAN MUSIC AND MOVIES COMBINED.
  • 7. 7 The Rise of esports Now ideally these are mutually beneficial, and the esports league becomes a part of fandom and pushes people back into playing the game and spending money on the game. That’s how this works in an ideal world, but right now revenues for esports are lower than the output, and the main draw is the massive audience. Because just like social media startups, as long as you’re having a bunch of users and a bunch of eyes, you have value, even if you’re not necessarily monetizing that perfectly yet. How do you monetize that better and more effectively? Maxwell Foxman Well, what’s interesting I think on that front, and this goes to the Newzoo numbers as well, is that a good chunk of that revenue is coming from investment. So you do have many brands, many different types of investors, including traditional sports leagues investing into esports. And that’s in many ways driving the direction that the companies and publishers making esports are imagining what their products can do. What’s really interesting is esports treads align that I think you might not see in traditional sports between media company and competitive gaming companies. So there’s, for instance, Riot Games does many different types of media partnerships, where they’re working with Marvel comics to make a comic, there’s a Netflix TV show about League of Legends. Maxwell Foxman.
  • 8. 8 The Rise of esports And so these sorts of strategic media partnerships, that we might think is much more common in the film industry, we’re now seeing game companies entering too. And I think that’s one of the things driving this investment that we’re seeing Star players can make a lot of money, right? Seven figure salaries, there’s a lot of competition to get them to play on your team. Will Partin For a really elite player... Their revenue pie is going to include prize winnings, it’s going to include salaries, it’ll include endorsements, and then maybe they’re also streaming on the side. This varies a little bit from game to game, I think one of the most interesting things to me is how each esport almost has its own kind of economy and the way it works. So a game I care about very much, Dota; salaries are not necessarily very good, but it has the highest payout in terms of prize pools. So the prize pool for its kind of version of the Superbowl, the international, was $34 million last year. Just enormous, right? And so if you go to esportsearnings.com and you look up who’s won the most money in esports, 48 of the top 50 players are Dota players. Madison Square Garden hosted the League of Legends World Championships in 2016. (Photo via Carl Scheffel/MSG Photos)
  • 9. 9 The Rise of esports And you might say, “Well that means that Dota has the most money.” That’s not actually true, because League of Legends is a much more robust and mature ecosystem. But it’s a place where people are not necessarily taking home lots of prize money, but it is somewhere where salaries are probably three or four times bigger than they are in Dota, at least. Maxwell Foxman And well it might be worth explaining how that prize pool is actually collected, because I think it gets back to Mitch’s point about sort of fan investment. Will Partin Definitely, so part of why the Dota prize pool is the way it is, is because it’s crowd funded. So every single year, Valve, the company that publishes Dota 2, says the International’s going to happen in August and we’re going to put out this book called the compendium. It’s a digital book, it has all kinds of goodies, virtual goods, little games, announcer packs, music packs, whatever; this all Dota themed. And as you put money into it, it levels up the book, and so a portion of that money then goes to the prize pool. So, that means that valve is actually probably clearing $150 million just on running this event. And that’s very much how that company works, its entire business model is built on externalizing and keeping a very small labor force at home. People can watch esports online by going ontoserviceslikeTwitch.Butifyouputinto a Google image search, “esports or esports competition,” you’re probably going to see a picture of thousands of people in a stadium watching people playing. Can you say a little bit about these physical events? Mitch Reames I think esports events are the most importantthingforsomebodywhodoesn’t understand esports to attend, because it really materializes what this is. I’ve grown up going to sporting events my entire life, I would tell almost every single Duck game I could too. League of Legends Worlds in Paris was the most rabid crowd I have ever been a part of and it wasn’t even particularly close. It’s this electric energy around it and all it takes is somebody to go into that crowd one time and be like, “Okay, yeah, this is massive. There’s a huge opportunity here and we need to be a part of it in some way.” THESE EVENTS ARE SO ACTIVE AND IT’S SO RARE TO BE ABLE TO ATTEND AN ESPORTS EVENT IN MOST CASES THAT WHEN THESE FANS FINALLY GET A CHANCE, USUALLY IT’S ONE OF THEIR FIRST COUPLE OF TIMES THEY’VE BEEN ABLE TO ATTEND, AND THEY ARE JUST GOING ABSOLUTELY BONKERS.
  • 10. 10 The Rise of esports There’s a pretty famous esports article on how the NBA involvement in esports began from Jacob Wolf. And it started when League of Legends held their world final at Madison Square Garden in 2015, and Adam Silver and some of the other NBA who’s who attended that. And no surprise after, a bunch NBA teams invested in League of Legends, they started the NBA 2K League. Maxwell Foxman I actually went to an esports event at Madison Square Garden and it was truly electric. From just a practical standpoint for those that need to imagine it, you’re looking at events that are styled often like the World Cup, in that they are held for either a couple of weeks. But they’re in a location where the actual competitions are players on stage. So, they areliterallyelevatedabovethecrowd,youcan see big screens behind you where the action is taking place, there’s often commentating. And I think one final point, and this is something that’s been emphasized I think to all of us, is that the companies are as much interested in that digital viewing as they are the live events. So much of what’s built into the spectacle, you expect to watch on Twitch, you expect to have watched on your computer, and that’s actually the first audience. And then those rabid fans are just adding some fuel to the fire and adding some special magic to it. But, it really is an event that if you want to experience the first place is go online. We’re seeing huge amounts of investment in this space. You’ve touched on examples of traditional sports organizations that have invested. We’ve seen the creation of special stadia dedicated to physical events in places like Dubai and Istanbul. Why is esports having a moment now? Will Partin One thing I’m really interested in is finance and the role that finance plays in this ecosystem. esports are not separate from big changes that have happened in who gets financed and at what level. One of the things that happens, coming out of the 2008 recession, is that interest rates go almost to zero. And also in order to really spur spending, one of the things the government and the federal reserve does, is buy a huge amount of bonds back from investors. A BUNCH OF NBA OWNERS STARTED ESPORTS ORGANIZATIONS THAT ARE SOME OF THE LARGEST IN THE WORLD. ALL IT TAKES IS GOING TO ONE OF THOSE EVENTS, AND YOU’RE IMMEDIATELY HIT WITH THE SCALE AND THE IMPORTANCE OF ESPORTS.
  • 11. 11 The Rise of esports And in theory, this releases a bunch of money that can then go be put into new investments, and in theory ones that are probably slightly riskier than just buying bonds. That’ssortofthemacro-economicbackground behind the tech boom of the 2010s, and so it’s that same dynamic that says, “Hey, let’s put some money into esports. Who knows if it’ll work out or not.” Maxwell Foxman A cautionary tale, but not necessarily a negative cautionary tale, is that gaming traditionally has led the way in terms of how to finance media and tech. So in other words, games were one of the first places where you can see really that subscription model that is so normal to something like Netflix, occurring and finding a real consumer base. What I’m excited about, and what I’m always thinking about, is when you start to see the sort of convergence of media, sports, gaming, tech happening at such a grandiose level with some of the game publishers that we’re talking about with these games, that bodes at least in my mind for similar trends that we might see and are already starting to see across other forms of media. Mitch Reames and Will Partin.
  • 12. 12 The Rise of esports So, for me there’s a lot of connections between something that we’re seeing with Disney+, how it’s built, how it’s interacting with other intellectual property, and what we’ve already seen companies like Riot and Epic doing. I think you can learn a lot from the steps that these esports companies are taking. Mitch Reames On the investment front, one of the big draws is the absolutely skyrocketing value of sports franchises. In the last 10 years, the sports franchises... You can pinpoint the moment, it’s when the Clippers were sold. The previous record high for an NBA franchise was 595 million for the Milwaukee bucks. The Clippers, due to a racist story that came out from Donald Sterling, forced him to sell the team. It’s a good team, and a major market, and it sells for $2 billion. The second that sale happens, it jumps the value of every other sports organization because now you have a market price for this, it’s almost four times as high as the last sale. And so that happens, and it also skyrockets all these other valuations. Then you see that you have this esports thing where you can get into esports on the ground level for pennies, compared to what it costs to get into sports. And people just see it as an awesome investment opportunity, given the consistent growth of sports franchises and basically every single major sport. And so esports is now that same thing, it’s why we see a bunch of sports owners get involved into it because it’s a small price to pay that could pay massive dividends in the future. What are the key implications for brands, media companies and journalists with the growth of esports? Will Partin One story I really like is about an ad campaign from Arby’s, the fast food restaurant chain. To preface this a bit, this is a story about how you can actually adapt your brand... Esports is a culture, and it’s self-regulating in some ways, in like what’s acceptable, what’s not. And a lot of the fans are keenly aware that they’re sitting on a gold mine, basically. And that a lot of people are going to try to capitalize on it, and that not all of them may or may not have good intentions. So a lot of times people talk about the authenticity of this culture, which is a word I have issues with, but I think there’s definitely some truth to it. AND SO WHAT ARBY’S DID HERE, AND IT’S BIZARRE, BUT THEY WERE SPONSORING A TOURNAMENT CALLED ELEAGUE, WHICH IS A COUNTER-STRIKE TOURNAMENT, WITH TERRORISTS, COUNTER- TERRORISTS, GUNS, ETC. AND WHAT THEY DID IS THEY GOT A COUPLE OF THE PLAYERS FROM THE LEAGUE, AND TOOK THEM OUT TO A SHOOTING RANGE, AND JUST HAD THEM, WITH ASSAULT RIFLES, SHOOT SOME ARBY’S SANDWICHES AND THEY HAD A HIGH SPEED CAMERA OUT.
  • 13. 13 The Rise of esports I’m trying to imagine the meeting with the Arby’s executive, where some ad agency comes in and says, “We’re going to shoot the sandwiches.” But esports fans loved this, and it was a huge... I think a real lesson for that brand of like, “Get a little bit out of your comfort zone.” It kind of created this massive buzz and hype; I’m still talking about years later. Mitch Reames esports has the highs and lows of brands in it, which is one of the coolest things. If you do it well, like that Arby’s thing, it pays massive dividends and they love you for it, they’ll carry your brand onto social media for you, they’ll carry it into Twitch chat for you. Now if you do it poorly, like you said, that authenticity thing, it comes up every single time you talk to anybody who’s ever advertised in esports, but it does actually matter. If you come in, slap a logo on something, and people start making memes out of your content... Here’sagoodexampleaboutthememething; Mercedes sponsored an ESL tournament a ways back. The S class was what they were trying to advertise, and Twitch chat made it a whole meme, and they were kind of getting roasted a little bit, they didn’t feel like they belonged in this space. Newzoo’s 2020 Global Esports Market Report projects revenues to exceed $1B USD in 2020.
  • 14. 14 The Rise of esports And at the very end, Mercedes tweeted something out showing that they heard Twitch chat and they had this S class thing and it involved one of the players. I can’t remember the entire details, but it went super viral. It had 40,000 likes, and it gets to a key thing, which is embrace the meme. They’re going to meme your brand, and as long as you’re ready for that... And it’s something that we’re seeing a lot of fast food brands do on Twitter as well, with Wendy’s snarky social media. That’s the kind of thing that works in the esports audience, and if it works, it really works well, but it’s a dangerous place for a brand that doesn’t understand the space as well. Maxwell Foxman What I really like about these two examples, in terms of lessons to be learned, is that there’s no question that if you’re a brand, a major worldwide brand, you have probably already looked at competitive gaming. If you’re a growing brand, it might be worth looking to competitive gaming. Similarly, if you’re a news outlet, there’s reason to think that this is an important beat that should be covered. Probably the best example of this is looking at what the Washington Post has done recently with Launcher, which Will has done some writing for. Is that the biggest misconception that you want to shatter? Maxwell Foxman Well, I think to that point, the myth that I think needs to be shattered is thinking that gaming publishers are not approaching their product with the same finances and perspective that a traditional media company, like a Disney, like an ABC, like a Fox, approaches their product. These are large companies with so many different types of creative talent, programmers, PR, communications, et cetera, and they approach their product in a very, very similar manner. The cultures are different, but we can say the same thing about any sort of entertainment culture. BUT THE FACT OF THE MATTER IS THAT WE’RE REALLY LOOKING AT SOMETHING THAT CONTINUES TO BE FRAMED OFTEN BY THE MEDIA AS BEING NICHE OR BEING OUTSIDE OF THE NORM, WHEN ALL THESE EXAMPLES JUST POINT TO HOW NORMALIZED GAMING, AND THEN AS A SIDE NOTE, COMPETITIVE GAMING.
  • 15. 15 The Rise of esports AndsopartofwhatIthinkaudiencemembers should take away from this also is to try to understand that culture sort of in its totality. You’vetouchedonsaying,brands,ifthey’re not already looking at this space, then they should be. What about for students in a journalism and communication school? How should they be thinking about this sector? Mitch Reames As a fairly recent grad of this school, the best thing about working in esports is that big newsrooms don’t have somebody in it. I would not be at AdWeek two and a half years after graduating, if I wasn’t the guy who could report on esports. That was my “in”, writing about violence in games and brands on Twitch. There are very few 35 year old’s that understand esports and most of them that are, are in VP roles, or something like that. You have people like Ryan Wyatt, who was a caster for Call of Duty, now he’s the head of gaming for YouTube. It’s these kinds of success stories that you see from very young people in their twenties that I think is a huge reason why students should care about this, because it’s a massive opportunity to do work that even you wouldn’t be able to do normally. I came out of the sports broadcasting program and I wanted to go do esports. Now that esports has led me back to sports; I’ve done articles on Shaquille O’Neal that are completely separate from esports, and it was not something I would have gotten to without esports. So I think that’s another misconception is that you’re choosing one or the other, in reality the esports and sports circles have a ton of overlap, and you end up doing both even if your specialty becomes esports. Will Partin There’s a particular kind of paragraph that occurs in a lot of legacy meeting writing about esports. I don’t have a name for it, but I should come up with one. The reporter is in the venue and there’s all this stuff, there’s people competing, there’s people cheering…. but it’s a video game. This has been done like 10,000 times and I get why they do it, but it’s an interesting thing where a lot of legacy media reporters when they come to esports spend a lot of their word count justifying why this is important. THEY DIDN’T UNDERSTAND THIS SPACE, AND THEY NEEDED SOMEBODY WHO DID. AND THAT’S TRUE FOR A LOT OF PUBLICATIONS, A LOT OF MAINSTREAM PUBLICATIONS, SO FOR YOUNG STUDENTS IN A VARIETY OF AVENUES, ESPORTS OFFERS AN OPPORTUNITY TO DO SOMETHING THAT DOESN’T HAVE NEARLY AS MANY GATEKEEPERS IN THE WAY.
  • 16. 16 The Rise of esports And that’s something I try to push back against when I do writing for these kinds of publications, where I don’t have to throw in three paragraphs of stats about revenues, numbers, whatever, you show it. And you show it through the story, you show it through the content that you’re actually creating. And one, it spares you this totally cliched thing that every esports fan looking at it is going to roll their eyes at. But two, I think it also spurs you to do more show don’t tell, and that’s just good writing. Maxwell Foxman If you look at the history and scholarship of game journalism, this is a longstanding trend of this kind of explainer paragraph, explainer story, vilification or praise of video games that has existed now for easily 20 to 30 years of game coverage. So I credit both of you for going beyond that traditional mode. One of the things I like to emphasize to my students is, you can take something like Twitch and start to think about how it might have applications beyond gaming to traditional reportage. I also think that you can see the making of a virtual environment becoming an increasingly normalized. And so the ability to actually work within and use 3D objects interaction with objects in a meaningful way is something that you can see most major outlets have experimented with, whether it’s with virtual reality, augmented reality, or even just making traditional news games. SoIthinkthattheseareinterestinginnovative skills that whether you’re covering esports or not, you can transfer into your next media profession. How do you see this sector evolving? What should we be keeping an eye on? Mitch Reames I’d say the biggest advancement is going to be mobile technology. Mobile esports are the biggest growth sector, and what they’re also going to do is they’re going to globalize esports. This is already a global industry, but mobile is way more accessible to underdeveloped regions. Right now, a huge push in esports is into India in the game PUBG mobile, especially. It’s the biggest game in India, and there’s 1.3 billion people in India, something like that. That’s a big market that is now adopting esports and that’s also true for South America, I think we see that more in Africa as well. ONE OTHER THING THOUGH THAT I THINK IS A GOOD LESSON FOR STUDENTS COMING INTO THE J SCHOOL, IS A LOT OF WHAT WE CAN SEE IN ESPORTS AND ESPORTS COVERAGE, ACTS AS BELLWETHERS AND TRANSFERABLE SKILLS FOR THE NEXT GENERATION OF REPORTERS AND MEDIA MAKERS.
  • 17. 17 The Rise of esports Mobile technology is so accessible that it allows a whole new group of people to become a part of esports where they don’t have to get a high quality gaming PC. They don’t need an Xbox or PlayStation, they have a mobile phone, they can play games on it, and suddenly the esports scene around mobile games, is progressing very quickly. We went from mobile games being very bare bones, Candy Crush, your tap and plays, to Battle Royale, which is a hundred unique players loaded into one server all loaded at once while you’re doing complex controls. So that’s how far mobile has gone, and that’s only going to keep growing and networks are only going to keep reaching new places, so I think mobile esports is the huge growth potential. Maxwell Foxman I’m really interested, on the U.S. side, about the deepening of infrastructure and institution that is happening with esports. The expansion of leagues, to the college and high school level in particular, and the way that that’s being supported by publishers, is something that I’m definitely going to keep an eye on. And it’s something that’s happening here at the University of Oregon, but it’s also something that you can see at local high schools, local malls etc. Will Partin Like Max [I am] certainly, very interested in the way that esports will continue to increase its integrations with legacy media institutions, be those sports firms, be those traditional media conglomerates. But also part of the story to me is thinking about the growing ambitions of the IT sector as a cultural industry. This is certainly expressed in all of the rush to create first party content from groups like Apple and Amazon and so forth. And we see one of the stories from the last month is that Google bought away the broadcast rights for Overwatch League from Twitch/Amazon. And part of the appeal of that is it didn’t just come with the broadcast rights themselves, which are now on YouTube. It also came with a deal that brought all of Activision-Blizzard’s games onto Google Cloud instead of Amazon Web Services. So this is a really interesting... This is a media conglomeration question, but it’s a slightly different media conglomeration because Disney, as far as I know,isnotoutheresellingcloudservers… not yet. But that becomes very interesting [to] me, how do these tech firms act when they are these vital figures and making monetizing and distributing culture? Watch full talks from the series on YouTube In a hurry? Catch the key lessons in these TV Studio Q&As Listen to the Demystifying Media podcast on iTunes, Spotify and SoundCloud