Are games, eSports and live streaming the future of entertainment?

Live streaming has been on the rise for a while, but as the COVID-19 pandemic began and lockdowns all around the globe were implemented, streaming of live content increased tremendously. The OTT industry (Over The Top: movies and TV shows that are delivered directly to digital users without the requirement of cable or satellite television subscription) saw an extremely large growth with more and more streaming services entering the market, and is set to be worth $247 billion by 2027.



When in 2020 our need for social interaction increased, the demand for an environment where gamers could communicate with gamer influencers and other game video content viewers grew as well. eSports is a subset of game video content and is defined by Insider Intelligence as organized game competitions among professional players and teams. While in-person sporting events were delayed for months due to the pandemic, eSports continued with online tournaments. One element of games that will remain important in the future, even when these tournaments will take place again in real life, is its ability to provide social interaction virtually. Overall, there will be more than 29.6 million monthly US eSports viewers in 2022, amounting to over 49.9% of all game video content viewers.



eSports penetration rate across European countries is highest in Poland (52%), Spain (49%) and Italy (48%), with about half of all consumers having watched eSports at least once in the past and approximately every third consumer watching regularly. Furthermore, esports exposure is high in the Nordics (38%), France (35%), the UK (35%) and Germany (33%). (source: Deloitte). In Belgium, 11.1% of the population are considered eSports fans. (source: META)





Media and broadcasters

The growing eSports viewership has caused many media companies to sign deals with prominent organizations to be able to broadcast tournaments. For example, one of the biggest deals is The Overwatch League, with Twitch paying a reported $90 million for a two-year deal. In early 2020, YouTube reached a three-year exclusive deal to serve as a broadcaster for all Activision Blizzard eSports events, including the Overwatch League, Call of Duty League, and Hearthstone, thereby replacing Twitch. The deal was reported to be valued at $160 million.



Streaming platforms that are focused on games specifically, like Twitch or YouTube, enable fans to have a direct connection to teams, players and influencers. This creates a sense of closeness, making eSports stand out compared to the “regular” sports sector. Broadcasting and media companies like ESPN or Proximus are also trying to get their foot in the door. However, they have a hard time fighting against the big live streaming platforms. 



Another important factor is that advertising is increasing rapidly in the eSports industry. The upper hand of eSports advertising is that it connects to an audience that is otherwise very difficult to reach: Millennials and Generation Z. This can transform eSports into a very lucrative, and appropriate way to conquer the “unattainable” market.



Other broadcasters

BBC

The BBC is expanding its horizons, as the channel has partnered with EA to air live footage of the FIFA 21 Global Series eSports competition. People can watch the European regional qualifiers and the series’ playoffs via the BBC, the BBC iPlayer and the BBC sports app.



GINX TV

Ginx TV is a United Kingdom-based media group specialized in eSports. Founded in 2007, it develops and operates media businesses dedicated to games and eSports. Alongside its TV channel, Ginx TV also publishes a website focused on games and eSports news.



SPORT1

German television broadcaster SPORT1and video game developer Psyonixhave extended their existing Rocket League partnership. This meant that the 2021-22 Rocket League Championship Series (RLCS) will be shown live on eSPORTS1 and eSportsONE in select European countries. The year-long extension includes some European RLCS matches being shown on free-to-air television from 8PM CEST every Sunday. The 2021-22 season features the largest expansion in its history, with new regions, a larger prize pool, and a return to LAN competition. Rocket League esports continues to grow in popularity. Thanks to the extension, millions of fans across Europe will be able to follow the action across the broadcaster’s network of channels.



RTBF iXPé

Our colleagues at RTBF launched a label dedicated to video games, geek culture and eSports called RTBF iXPé. iXPé is named after the word experience because this universe that RTBF is diving into is a new experience. During Meet the Makers, an event Future Media Hubs hosted that focused on cutting edge online audio and video technology.  The video game and eSports expert at RTBF told  us that one of the biggest missions RTBF iXPé has is to build an ecosystem that brings together like-minded people whose interests were long forgotten by the general media. RTBF iXPé is mostly active on Twitch and creates more than 50 hours of programming a week. 

Twitch

According to TechCrunch, Twitch dominates the live streaming market with more than 2.7 billion hours watched and a 72% share of total live hours in 2019. Twitch continues to grow as the front runner of streaming platforms, enjoying a 97% increase in hours watched year on year. Twitch reached new heights in 2020 with its engagement and viewership skyrocketing as the go-to destination for gamers stuck at home.  

According to AkumaFredo, a Belgian live streamer that is active on Twitch, one of the advantages of the platform is diversification: when creating an account, users can specify which games they are interested in. Besides that, the interaction between streamer and viewer is highly personal. While television is a one-way street, following a  Twitch stream is a social activity. Because of the chat the viewer is part of the conversation, and feels seen by the people they look up to, which results in a feeling of closeness.



AkumaFredo also says that Twitch is considered an “authentic” platform: when something goes wrong during a live stream there is no covering it up. The concept of authenticity on social media has been on the rise for a while, but when during the 2020 lockdown people were looking for social contact, the number of users in Belgium alone doubled. The Flemish union of social media professionals claims that currently, there are 1,2 million active Twitch users.



All of this sounds like a perfect storm, but the thing Twitch excels at is investing in their community, prioritizing it over numbers. There is a big network of like-minded individuals that don’t necessarily feel seen by traditional media, and by organizing community events Twitch nourishes the loyalty of its users. 

For the last couple of years Twitch has been trying out new categories of streaming like music, art, ASMR and even a travel vlog category. The streamer makes an effort to focus on other content, although the focal point of the platform undeniably lies on games.



YouTube

Twitch might be the biggest, but that doesn’t mean it is necessarily the best. YouTube is currently doing right where Twitch is dropping the ball. Twitch's substantial flaw is the discoverability on the platform: when you play a popular game it’s almost impossible to be discovered since so many people are playing at the same time. With a community on YouTube it is easier to connect with them on multiple levels by creating extra video content (like regular videos, stories, shorts and VODs). Instead of scattering your content on different platforms, YouTube allows its creators to grow their channels by doing more than just streaming all the time, and therefore creating extra content and strong brand identity altogether.

Ryan Wyatt was YouTube's head of games until January 2022. Under his guidance, YouTube added several features to cater to game-focused creators and viewers, such as subscriptions, Super Chat and clips. Many are currently wondering: what’s gonna happen next? Is YouTube gonna dethrone Twitch? Recently, YouTube swiped two live streaming stars: DrLupo and TimTheTatman, with significantly better offers than Twitch was willing to make. Currently, YouTube's guidelines state that the company takes 30 percent of creators' channel membership revenue, while Twitch takes 50%. One could wonder: are streamers fatigued by the Twitch-centric status quo?



Lately, Twitch has been having some problems that are frustrating to the users, making YouTube its biggest competitor. For example, the Terms of Service at Twitch are maintained rather subjectively: some people get banned from the platform because of a small accident, while violations of bigger users are condoned more often. Combined with unclear DMCA guidelines that also can lead to suspension, the streamers’ trust in Twitch is starting to subside.



Tournaments

From 19 until 22 May 2022, the World Championship CS:GO (Counter-Strike: Global Offensive) will take place in Antwerp. CS:GO is one of the most popular online shooting games in the world: in January 2022, the game averaged 604,463 players per day with nearly a million players at peak times (figures: streamcharts). The big pull of these types of events is that while live streaming is entertaining, it’s also a relatively passive affair for the audience. During an eSports tournament like minded individuals can connect on a bigger scale.

Unbeknownst to many, this tournament is for eSports what the FIFA World Cup is to football. With a prize fund of 1M USD, it is the perfect opportunity to put Antwerp on the map, attract sponsors and shine a light on local teams. 

META, a digital consultancy that was META long before Facebook was Meta, has been working behind the scenes to set up the Esports Revolution conference during the World Championship. The Esports Revolution conference will bring together global powerhouses and reveal the direction the industry is going and how to get involved. Asking questions like: how is the esports industry shaping up globally and how can brands connect with it? Who invests in eSports and why? What can eSports do for a local market and how can it transform and shape a new industry? This event is a unique opportunity to gain further insights in this rapidly growing industry. 

Netflix

Netflix has been building out its game service since late last year when the company debuted its initial lineup that included a couple of “Stranger Things''-themed titles and other casual games. Netflix CEO Reed Hastings declared that the streaming giant’s ambition is to become the best game service, however, it’s safe to say that they are not (yet).



eSports at VRT

VRT has experimented quite a lot with eSports, to varying degrees of success. In our experience the most important thing is connecting to gamers in an authentic way. When gamers feel belittled or looked down upon they will check out quickly. That’s also why it is of paramount importance to create games related content by people that have knowledge about or are interested in the industry.



VRT has a lot of resources and reaches a wide variety of people. We are late to the gaming game, but we aren’t the only media company with that particular problem. If we find a way to combine our talent, strong brand identity and production skills we still have the potential to be a frontrunner when it comes to eSports.





Conclusion

There is no perfect live streaming platform, but that means the opportunities are numerous. One of the biggest strengths of games, live streaming and eSports is its community. The unique culture of live streaming is that it is built on strong social interactions and feelings of togetherness. Platforms will have to keep this in mind as the most important touchstone when it comes to making decisions.



The emergence of the eSports industry has captivated hundreds of millions of people. As the audience grows, viewers will want to watch their favorite games and tournaments anywhere, whether it's on their computers, phones, or televisions. Furthermore, as broadcasting companies claim media rights to eSports events, it is expected to also directly benefit advertising revenues.



Since the market is so international the potential to be discovered in Belgium is relatively small, but not impossible. The World Championship CS:GO, and the parallel Major Esports revolution conference will be a major opportunity to put Belgium on the map as a game hub. 

Overall, the rapidly growing games industry is here to stay. The best time to anticipate, and even participate, is now.

 

You can find more information about The Esports Revolution conference at https://major.esportsrevolution.gg/

AkumaFredo is active on Twitch at https://www.twitch.tv/akumafredo?lang=nl 

Article written by Anne Vanoppen