eSports Week In Review | Amazons Ticketing Opportunity, DisneyXD Programming, Nielsen Esports

ESPORTS WEEK IN REVIEW | AMAZON'S TICKETING OPPORTUNITY + DISNEY XD PROGRAMMING, NIELSEN ESPORTS 

Team Liquid Wins $10.8M From The International 2017 (Photo: Valve)

Team Liquid Wins $10.8M From The International 2017 (Photo: Valve)

TNL Take: This past weekend, Team Liquid won the largest eSports prize pool to date garnering $10.8M - yes, $10.8M or $2M+ per person - by winning The International 2017. 

While that is the largest eSports tournament prize pool by far, here's some perspective on what that means:

The International 2016 vs. US Open Golf 2016 (Graphic: The Next Level)

The International 2016 vs. US Open Golf 2016 (Graphic: The Next Level)

This year's 2017 Golf US Open Champion prize is exactly equal to each member of Team Liquid's $2.16M winnings.

What are you betting on 10 years from now?

This week The Next Level looked at Amazon's eSports ticketing opportunity, DisneyXD' pulls ahead in eSports programming and Nielsen forms eSports advisory board and launches Nielsen Esports.

 

MONDAY 08/14

Amazon + Ticketing + eSports = Opportunity

Amazon + Ticketing + eSports = The Opportunity (Photo: Benjamin Faust)

Amazon + Ticketing + eSports = The Opportunity (Photo: Benjamin Faust)

 

TUESDAY 08/15

The Next Level was off

 

 

WEDNESDAY 08/16

2017 eSports TV Ratings: Disney XD Pulls Ahead With 28 Programs

2017 Disney Networks eSports TV Ratings (Infographic: The Next Level)

2017 Disney Networks eSports TV Ratings (Infographic: The Next Level)

The Next Level Joins Nielsen's eSports Advisory Board (Photo: Nielsen)

The Next Level Joins Nielsen's eSports Advisory Board (Photo: Nielsen)

 

HAVE A GREAT WEEKEND!

Amazon + Ticketing + eSports = Opportunity

AMAZON + TICKETING + ESPORTS = OPPORTUNITY

Amazon + Ticketing + eSports = The Opportunity (Photo: Benjamin Faust)

Amazon + Ticketing + eSports = The Opportunity (Photo: Benjamin Faust)

Amazon + Ticketing + eSports = The Opportunity (Photo: Twitter)

Amazon + Ticketing + eSports = The Opportunity (Photo: Twitter)

There's definitely a huge opportunity in taking on Ticketmaster alone, which generated $1.6B in revenue in 2016 per BTIG's estimates.

But let's look at how Amazon can turn this into an eSports opportunity.

 

WHO WOULD THEY BUY?

The Ticket Fairy's Investor List (Photo: Crunchbase)

The Ticket Fairy's Investor List (Photo: Crunchbase)

There are plenty of ticketing startups that Amazon could look at. After I sent that tweet, a former MLG colleague of mine alerted me to the The Ticket Fairy.

Just Twitch COO Kevin Lin, Justin Kan and Emmett shear - the co-founders of Twitch - and Y Combinator, which invested in Twitch and gave the incubator a massive return.

This isn't a guarantee that Amazon/Twitch will choose The Ticket Fairy but the investor list overlap is pretty amazing.

 

WHAT COULD THEY DO?

TwitchCon 2016 (Photo: Twitch)

TwitchCon 2016 (Photo: Twitch)

TWITCHCON

TwitchCon is the easy first option, the massive event that Twitch has held for the past few years celebrating their influencers, fans and platform.

 

TWITCH PRIME

Amazon's Twitch Prime Move Is Genius (Photo: Twitch)

Amazon's Twitch Prime Move Is Genius (Photo: Twitch)

Now let's go deeper and what I consider one of the most brilliant moves that Amazon has done with Twitch:  Twitch Prime

Remember, Twitch Prime is all about driving Amazon Prime memberships overall, as the latter automatically gives you access to the former and increased value to the Prime platform - I don't even want to know how much I've spent using Amazon Prime Now with 2-hour delivery in NYC.

 

EVENTS

In March, Twitch announced that streamers would get a cut of any game sold through their channel. 

Now imagine this scenario.

Any developer based event that Twitch drives the ticketing platform can be further deeply integrated with both Twitch Prime and Game Sales. 

It can go even deeper than that.

What if you got an Exclusive item via Twitch for attending that event that Amazon just sold you a ticket for?

Overwatch Loot Box Via Twitch Prime (Photo: Twitch)

Overwatch Loot Box Via Twitch Prime (Photo: Twitch)

 

EVENT PLATFORM

Matcherino's Events (Photo: Matcherino)

Matcherino's Events (Photo: Matcherino)

Last month, I analyzed Matcherino's $1.5M round and how that platform helps event organizers crowdfund prize pools and help distribute the winnings.

How does Matcherino work?

Matcherino With Twitch Login (Photo: Matcherino)

Matcherino With Twitch Login (Photo: Matcherino)

Oh you just use your Twitch login and connect your PayPal account.

See it now.

 

THE ESPORTS TICKETING OPPORTUNITY

Amazon's potential move into ticketing is them disrupting another industry - when will the first Amazon health care facility open?

What's the accretive value to Amazon overall to get into ticketing? Ill let the Wall Street analysts do the math on that one.

 

But there's a huge play between Amazon, Twitch, eSports and ticketing.

Amazon's Twitch Prime Move Is Genius

AMAZON'S TWITCH PRIME MOVE IS GENIUS

Twitch Prime Launch At TwitchCon 2016 (Photo: Twitch)

TNL Take: 767 days after buying Twitch for $970M, Amazon is finally integrating the platform deeper into their ecosystem.

And it wasn't just one product.

Friday at the start of TwitchCon 2016, Twitch CEO Emmett Shear revealed a slew of new initiatives of which the biggest was the launch of Twitch Prime.

 

This is a huge move from Amazon.

 

Here's how Twitch Prime will impact the platform:

/01 FREE GAMES AND LOOT AKA DEVELOPER LOVE

Twitch Prime Exclusive Hearthstone Character (Photo: Twitch(

This is the main key to Twitch Prime.

For Twitch Prime Members, they will receive monthly freebies of games and in game items.

Forget the games and focus on the in game items.

  • In October, Twitch Prime members will get a branded skin for Hi-Rez Studios’ SMITE
  • Until November 6, Blizzard's Hearthstone will receive an Exclusive Hero and custom card pack only for Twitch Prime members
  • There will also be continual supply of Boosts and Characters as well

This is so smart.

It not only provides value to the end consumer, but also huge bonus for developers to get more involved with Twitch as a platform - more on that - outside of just live streaming.

If Developers have both marketing + monetization + consumer engagement across Amazon/Twitch; the overall ecosystem becomes much stronger.

 

Twitch Prime Member Game Discounts (Photo: Amazon)

/02 GAME DISCOUNTS AKA MORE DEVELOPER LOVE

Twitch Prime members receive Exclusive discounts on New physical games sold by Amazon during the pre-order period and for the first two weeks after launch. 

This is also ties directly into potential deeper Amazon Sales channel relationships, revenue sharing and further cements developer relationships.

 

Twitch Prime Member Free Monthly Sub (Photo: Twitch)

/03 FREE SUBSCRIPTIONS AKA STREAMER LOVE

Twitch Prime Members get 1 Free Subscription to any channel on a monthly basis. This is again a Win-Win for Twitch: Users get a Free Channel but more importantly - Twitch Streamers get 1 Month of "Free" Income.

This is a further push to keep Streamers on Twitch vs. moving to other platforms.

Another smart move. 

 

/04 AD FREE EXPERIENCE AKA USER LOVE

Twitch Prime members also get the benefit that Twitch Turbo provided, an Ad-Free experience.

You can also say goodbye to Twitch Turbo at this point.

The interesting aspect to me: Obviously based on the number of Amazon Prime/Twitch Prime members, this reduces the US Users from an Ad Sales perspective. Further, Twitch won't show Ads to the Users but will still pay the Streamer as if the Ad played.

Whatever potential Ad Sales revenue losses will easily be offset by the Prime revenue.

So how many people are actually going to sign up? Lets try that next.

 

Amazon's Money Machine (Photo: Amazon)

/05 IT'S ALL ABOUT AMAZON PRIME

All of these features tie together in one master stroke:

To get Twitch Prime you have to have Amazon Prime.

So what's the potential upside of Amazon Prime subscriptions based on including Twitch Prime?

Without having internal data it's very, very, very difficult to quantify - but I'm going to take a quick 1 minute stab:

  • Twitch Users = 100M (Jan 2015)
  • Twitch US % Estimate = 50M (The Next Level)
  • US Prime Users = 55M (Jan 2016)
  • US Prime % = 50% of US Households (July 2016)

Assuming the Twitch user base hasn't dropped in almost two years - it more than likely has - you still can't assume all Twitch users (50M) have Amazon Prime (55M).

A very rough, very quick estimate: A 5% potential increase in Amazon Prime Subscriptions.

Again, just take that directionally if not at all.

Regardless, plenty of number crunchers in Seattle have spent a lot more time, with a lot more data doing this and Amazon is one of the few companies I don't bet against.

Let's wait till the next Quarterly earnings to see if there's any uptick.