Riot Games, the host of the League of Legends World Championship, is gearing up for 2017's games, and making some changes in response to the evolving eSports industry to increase its viewership and stay on top of its competitors, such as Activision Blizzard.
As Fortune reports, the competitive gaming industry is "now expected to generate more than $1.5 billion in annual revenue by 2020," which is causing tech giants and sports teams to increase their involvement. As Jarred Kennedy, co-head of eSports at Riot Games has stated, a large part of this revenue goes to media rights, as companies like YouTube and Twitch stream the games live for players to participate remotely from all around the globe. In addition, Fortune divulges that just last year, the company "signed a reported $300 million streaming rights deal with Walt Disney’s BAMTech."
By collaborating with these streaming service providers, Riot Games increases its exposure and enables fans from everywhere to stay connected with its community of players.
Streamable Global Gaming Tournaments
The League of Legends World Championship is Quickly Expanding
Trend Themes
1. Increased Esports Revenue - The eSports industry is projected to generate over $1.5 billion in annual revenue by 2020, creating opportunities for increased profitability and competition in the sector.
2. Media Streaming Partnerships - Collaborating with streaming services like YouTube and Twitch allows for global viewership of gaming tournaments, opening up new avenues for revenue and fan engagement.
3. Tech Giants and Sports Teams Involvement - The growing popularity and profitability of eSports are attracting the attention of tech giants and sports teams who are looking to capitalize on the industry's potential.
Industry Implications
1. Gaming and Esports - The gaming and eSports industry is poised for continuous growth and innovation as companies adapt to the evolving landscape of competitive gaming tournaments.
2. Media Streaming Services - Streaming platforms like YouTube and Twitch have an opportunity to expand their user base and revenue streams by partnering with gaming leagues and broadcasting their high-profile tournaments.
3. Sports and Entertainment - Sports teams and entertainment companies have potential avenues for diversification and revenue growth by venturing into the eSports space and tapping into its passionate fan base.