eSports Week In Review | The Most Active VC'S, The Reality of The NFL's Entrance, Disruptive Technologies: Ethereum

ESPORTS WEEK IN REVIEW | THE MOST ACTIVE VC'S, THE REALITY OF THE NFL'S ENTRANCE, DISRUPTIVE TECHNOLOGIES: ETHEREUM

The Next Level Official Content Partner of XLIVE eSports Summit (Photo: XLIVE)

The Next Level Official Content Partner of XLIVE eSports Summit (Photo: XLIVE)

HBO's Silicon Valley (Photo: YouTube)

HBO's Silicon Valley (Photo: YouTube)

The List: The Most Active VC's In eSports (Photo: Bloomberg)

The List: The Most Active VC's In eSports (Photo: Bloomberg)

XLIVE eSports Summit: Connecting Brands With Fans Panel (Photo: ULT/ XLIVE)

XLIVE eSports Summit: Connecting Brands With Fans Panel (Photo: ULT/ XLIVE)

EA Madden, NFL, Amazon, Mobile and eSports (Graphic: The Next Level)

EA Madden, NFL, Amazon, Mobile and eSports (Graphic: The Next Level)

TNL Infographic 057: EA Madden NFL Club Series Growth (Infographic: The Next Level)

TNL Infographic 057: EA Madden NFL Club Series Growth (Infographic: The Next Level)

 

HAVE A GREAT WEEKEND!

EA Madden, NFL, Amazon, Mobile and eSports

EA MADDEN, NFL, AMAZON, MOBILE AND ESPORTS

EA Madden, NFL, Amazon, Mobile and eSports (Graphic: The Next Level)

EA Madden, NFL, Amazon, Mobile and eSports (Graphic: The Next Level)

EA Madden NFL Year over Year Comparison (Infographic: The Next Level)

EA Madden NFL Year over Year Comparison (Infographic: The Next Level)

This is one of three big changes to EA's Club Series with NFL pro teams. While last year started with 8 - Bills, Jaguars, Chiefs, Vikings, Patriots, Eagles, Steelers and the 49ers - this year, it expands to all 32 NFL teams.

 

/02 PRIZE POOL

EA 2017 Club Series Champion Prize (Photo: EA Sports)

EA 2017 Club Series Champion Prize (Photo: EA Sports)

The second big change is the amount of money on the line. Last year's 8 total events were for $10K each along with the Club Finals with a $50K prize pool, bringing 2017's total to ~$130K.

Madden 18's Club Championship total prize pool of $400K+ more than triples last year's total...with a catch.

 

/03 STRUCTURE

In addition to the Club Series Finals being held at Pro Bowl Experience in Orlando, the winner will also receive 2 tickets to Super Bowl LII - another sign of the NFL's involvement.

 

 

/04 TWITCH PRIME

Now is where things start to get really fun.

This past Saturday morning  I found something very interesting posted and tweeted the following:

EA Madden NFL 18 and Twitch Prime Integration (Photo: LinkedIn)

EA Madden NFL 18 and Twitch Prime Integration (Photo: LinkedIn)

The reception from the community was overwhelmingly positive and a YouTube video made just around my Tweet has 20,000+ views currently:

Mr.GoldenMut YouTube Video (Photo: YouTube)

Mr.GoldenMut YouTube Video (Photo: YouTube)

Twitch Prime and EA Madden NFL 18 Promotion (Photo: Twitch)

Twitch Prime and EA Madden NFL 18 Promotion (Photo: Twitch)

I've talked plenty about how Twitch Prime is genius and the ability to lure in publishers is so critical and this is another example.

 

/05 AMAZON'S NFL PROGRAMMING

The Patriots Winning Another Super Bowl (Photo: USA Today. Mark J. Rebilas)

The Patriots Winning Another Super Bowl (Photo: USA Today. Mark J. Rebilas)

In April, Twitch owner Amazon signed a partnership with the NFL for $50M to stream 10 Thursday night games to Amazon Prime members.

Everything is about selling Amazon Prime. Everything is about selling Amazon Prime. Everything is about selling Amazon Prime.

If 500K people sign up for Amazon Prime to get access to the NFL content, Amazon breaks even on the media rights. Even if they don't, it's more marketing and programming for their content chest.

 

/06 MADDEN MOBILE

EA Madden NFL Mobile (Photo: EA Sports)

EA Madden NFL Mobile (Photo: EA Sports)

One of the least publicized success stories in the mobile gaming space is Madden Mobile. During the NFL season the game is consistently in the Top 10 grossing on the App Store.

Go ahead and check where it is right now.

Amazon has invested greatly with Vainglory and mobile eSports and there's further opportunity here as well.

 

/07 TICKETING

I covered this last week with Amazon's potential disruption of another industry - ticketing - and the huge eSports opportunity that it holds.

Now add NFL ticket purchases and all the additional value provided with the points above.

 

/08 NFL INVOLVEMENT

Don't discount the NFL finally getting into eSports and putting their name, marketing and executives behind this initiative.

The NFL is the 800-pound gorilla on top of the media and sports food chain.

 

THE REAL DEAL

 

It's great to see the largest and most popular US sports league jump into the eSports pool.

Now add in cross promotion between EA Madden, watching Thursday NFL games on Amazon, Twitch Prime integration, Mobile, the NFL's marketing machine and the vision starts to emerge.

 

But here's the reality.

 

/01 It’s nowhere close to what Activision-Blizzard is building with their Overwatch League, Riot Games’ North American League of Legends League or the upcoming NBA 2K ELEAGUE with more than half of the pro teams included.

For both the NFL and EA to emulate OWL, LOL, and NBA2KELEAGUE in such a short amount of time would have been a herculean task.  The information for the Madden 18 competitive season was released less than a week before the game launches.

 

/02 The total EA Madden NFL 18 prize pool increased from $1.000M to just $1.153M. EA should clear $750M+ in Ultimate Team earnings from primarily FIFA and Madden this year with continued growth.

Even the Club Series total while seeming high at $400K is the total for 32 teams - when looked at on an individual basis it's also a slight increase over last years $10K prize pool each.

A slight prize pool increase and fewer Athletes being flown out to events - while Ultimate Team dollars continue to flow in.

 

/03 No details were revealed around either Digital or TV distribution but I'd be shocked if the Madden 18 Championships were not either on a Disney platform or The NFL Network.

 

04/ Brands - where are they?

While last years Club Series did have brands present like Gillette and the Patriots, these deals were either added value or for very little revenue.

 

/05 This is the biggest difference between the 3 major upcoming eSports leagues and what European soccer teams are doing with their investment.

While the winners get a much larger prize pool, entry to the Madden 18 Championships and a slew of benefits, what happens with “NFL Club Winner” after this?

This program isn’t like being officially sponsored by a Paris St. Germain, which has many FIFA Athletes represent the club and provide the “3 M’s Of Why Pro Sports Teams Invest In eSports”™ - Marketing, Merchandising and Monetization.

 

Whichever NFL pro team does decide to become the innovator and begin emulating their European counterparts will start seeing the ROI with real investment in the eSports space much  more quickly than the next teams that will quickly follow suit.

eSports Week In Review | Apr 07

ESPORTS WEEK IN REVIEW | APR 07

Intel Extreme Masters Katowice (Photo: ESL/Helena Kristiansson)

Intel Extreme Masters Katowice (Photo: ESL/Helena Kristiansson)

TNL Take: It was a relatively quiet week for eSports this week but as we end the first Quarter of 2017, we've seen impressive year over year growth across Investment, Pro Teams, TV Programming and Brands.

The Next Level looked at these trends as well as two Podcasts this week.


MONDAY 04/03

TNL eSports Guest Podcast 004: NFL Athlete and Co-Owner Ricky Lumpkin (Graphic: The Next Level)

TNL eSports Guest Podcast 004: NFL Athlete and Co-Owner Ricky Lumpkin (Graphic: The Next Level)


TUESDAY 04/04

TNL eSports Podcast 018: Morgan Stanley's Overwatch League Revenue Estimates (Graphic: The Next Level)

TNL eSports Podcast 018: Morgan Stanley's Overwatch League Revenue Estimates (Graphic: The Next Level)


WEDNESDAY 04/05

Q1 2017: The Brands That Invested In eSports (Source: The Next Level  Infographic: Jordan Fragen)

Q1 2017: The Brands That Invested In eSports (Source: The Next Level  Infographic: Jordan Fragen)


THURSDAY 04/06

2017 eSports TV Ratings (Infographic: The Next Level)

2017 eSports TV Ratings (Infographic: The Next Level)


NEXT WEEK ON TNL
 

HIGH SCHOOLS, COLLEGES, LEAGUES: THE INTERNATIONAL SCENE
TNL ESPORTS PODCAST
ESPORTS BRAND TRACKER UPDATES

AND MORE....

Have a great weekend!

eSports Wars: Twitch vs. Everyone Else - Part 1

ESPORTS WARS: TWITCH VS. EVERYONE ELSE - PART 1

TNL Take: 9 months ago, I looked at the various companies, startups and platforms going after the eSports market in The Next Level 010: The War On Twitch.

How quickly things change.

When you're on top of the mountain, unfortunately the only place to go is down. Pre-Amazon acquisition, if you wanted to watch any eSports content, you pretty much went to Twitch.

Things started to change in 2016.

TNL Infographic 007: eSports Media Evolution 2016 (Infographic: The Next Level)

I steadfastly hold to my opinion that one of 2017's biggest eSports themes will be about broadcast and media rights.

Here's what's happened so far this year:

TNL Infographic 031: eSports Media Evolution 2017 (Infographic: The Next Level)

TNL Infographic 029: 2017 eSports TV Ratings (Infographic: The Next Level)

This past week, we saw another Exclusive broadcast deal, between FACEIT which brings their Counter-Strike based ECS (eSports Championship Series) to YouTube.

Not only did the ECS launch last year on Twitch, this is the 2nd Counter-Strike Exclusive for YouTube Gaming after it's January deal with ESL's Pro League.

This is interesting for a few reasons but let's recap what I said last year about YouTube and eSports:

The Next Level 010: The War On Twitch (Photo: The Next Level)

The Next Level 010: The War On Twitch (Photo: The Next Level)

YouTube basically didn't need live eSports considering how much many it's makes off VOD eSports and Gaming content - cough....Pewdiepie....cough.

Here's why I believe YouTube is making this move now.

/01 COUNTER-STRIKE ESPORTS VIEWERSHIP

If you go back over the last year, Counter-Strike has been in the top 3 eSports games by Hours Viewed and #1 for half of the year.  If you're selling ads - you need eyeballs and engagement.

 

/02 COUNTER-STRIKE EXCLUSIVES

Now that YouTube has both ESL's Pro League and ECS - and considering that ELEAGUE Season 3 hasn't been confirmed yet and IEM/Dreamhack CS events are also on Twitter now - Google has almost a virtual lock on Counter-Strike Exclusive content.

 

/03 ECS REVENUE SHARING AND GOOGLE SALES

I'm just going to quote directly what FACEIT's Chief Business Officer Michel Attisani told Forbes:

"ECS is co-owned by the teams participating and there is a revenue share in place. This deal will bring great stability to the scene, and will give us the opportunity to really focus on developing the product, while the YouTube and Google sales team will take care of commercializing the content. That’s not just in terms of pure advertising but also in terms of sponsorship and brand integration. When you talk about Google, it's the best sales force in the world when it comes to digital"

 

/04 YOUTUBE TV AND ESPORTS CONTENT

TV Channels On YouTube TV (Photo: YouTube)

YouTube's new Live TV subscription service for $35/month has a ton of great content from channels like ABC, CBS, NBC, FOX, ESPN, 2 and 3, THE CW, FS1, BTN - if the last few sound familiar, they've all broadcast eSports content over the past year.

However there's another potential for eSports and Gaming content: YouTube Red Originals.

YouTube Red Originals will be included in YouTube TV's content package which contains a lot of gaming content.

Offering exclusivity, distribution, content, studio production and monetization - makes YouTube and eSports a lot more compelling than potentially other platforms.

Twitch isn't going to sit back and let YouTube, Facebook, Twitter and other emerging startups just take what they've built over the past few years.

How is Twitch going to strike back?

I'll cover that in Part 2.