The Paltry Economics of Esports

In this video we explore the economics of professional esports teams.



#Wallstreetmillennial #esports

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Buddha by Kontekst / kontekstmusic
Creative Commons — Attribution-ShareAlike 3.0 Unported — CC BY-SA 3.0
Music promoted by Audio Library • Buddha – Kontekst (No Copyright Music)
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0:00 - 2:12 Intro
2:13 - 3:29 Founding of NIP
3:30 - 6:28 Esports competitions
6:29 - 9:22 Economics of the teams
9:23 - 12:42 Revenue sources
12:43 Vanity industry

[thegray]

My nephew wanted a Ninja in Pyjamas shirt for his birthday....my mom thought it was a Nickelodeon cartoon.

[richardkovak]

I feel like you are using the term “athlete” very liberally in this video.

[stuartstein]

You can call them athletes until the cows come home let's see one of them run a mile

[Bel-rclx]

If that is all it takes to be called "athletes", then my fellow YouTube community...I'm proud to announce I am Cristiano Ronaldo, Mike Tyson, and Kobe Bryant (RIP) all rolled into one. I demand to be entered into every sports hall of fame!

I was going to complete in the Olympics but the hours of gaming on the Xbox took my energy.

[gxguy]

This is why almost all sports teams are not in the stock market

[MakerInMotion]

One issue is the esports "athletes" aren't very marketable. They're not good looking and they're usually socially awkward.

[michaelmarlow]

The esports bubble got so big so quickly there was never a chance for a lot of the games/leagues to establish themselves. They want to compare to other big sports but they’ve been around for over a century in most of them to establish a fan base to get bought in. The orgs wanted to set themselves up like an NFL team but didn’t understand the underlying strength of viewers wasn’t there. Since it’s free to view and they can switch at will they can jump from game to game viewing.

[rook]

Forget 725M, Nobody is explaining why Faze is even worth 17M

[kolonarulez]

Today is my 29th birthday. Good to know my hand eye skills peaked 5 years ago.

[s]

Playing games for money, and not for fun, sounds like hell.
Like eating when you’re not hungry food that you don’t like.

[STATESZ]

"but this wasn't enough to cover their corporate overhead" just sounds to me like "our executives get paid way too handsomely, at the expense of investors".

[flyingzeppo]

A house filled with teen male gamers. Imagine how funky that house must smell.

[KyleBDoeden]

I think a big issue with esports is that watching a streamer who is just ok at the game but is likable and funny can be just as or more entertaining than watching super competitive players.

[JoeRogansGutBiome]

Young people losing their jobs and getting replaced by even younger people. This has been going on for generations.

[jamesodell]

It would not surprise me if the leagues started to offer gambling on the tournaments.

[agyarhardjasudjana]

I think the challenge here is attracting people who dont play games to watch the matches and invest in the industry. A lot of popular sports like football (Assoc, American, Australia etc) and Basketball are spectacle sports that people watch and follow eventhough they dont play the game. People inherently appreciate the difficulties and the excitement of the sports eventhough they never play the game.

Other sports like Golf, Chess are only exciting to watch for people who play the game because general watcher cant really appreciate the level of difficulty. E-Sports went into this category. I think e-sports should learn from other "Physically less demanding sports" for references on how to market them.

In addition e-sports are new. The oldest demographic that can understand the industry are Millenials. Not enough legacies to be build yet. The industry will be more sustainable when Gen Beta reach adolescent. Its too early now.

[Exigentable]

I never really understood the popularity of traditional sports until I started to appreciate professional-level CS:GO. It suddenly made a lot of sense why people are into Soccer or American Football. It's all about seeing competition at a level far beyond what the average person is capable of.

[technetium]

No one ever mentions a *core* problem of eSports, someone, legally owns it, football is not copyrighted by someone, i can create a league and theres nothing anyone can do about it, it can compete with any league from anyone, which creates competition and more teamn to attract people, eSports someone owns that shit, you slight the owner, or run a competition, good luck with your cease and desist letter

[davidc]

Like many other new industries, esports was the product of the last two decades of bubblenomics. I seriously doubt whether esports is a sustainable industry, especially given the major headwinds facing the global economy.

[jeko]

Every time you say athlete I'm mentally adding sarcastic air quotes around that word.