Here’s Know, How Esports Organization Earn Money
How do esports teams make money in India? What is their revenue model like? How much do Indian team and players earn? To answer these and many other questions. Let’s start by setting some context. Roster refers to a group of pro players. Add some support staff like coaches, analysts etc and you have an esports team.
Several teams competing in different sports make up an esports organization. The terms team, roster and organization are often used interchangeably. Especially in the case of organizations that compete in only one game. This was generally the case with export organizations in India. Especially before the PUBG Mobile ban in the country.
According to Forbes, India is ranked 16th with a total revenue of $1.17 billion (about Rs 8,000 crore). In comparison, North America is projected to generate approximately $409 million in revenue over the next four years. While China is considered to be the largest gaming market in the world, with a total revenue of $37.9 billion (about Rs 26.11 lakh crore). by the US, Japan and Korea. This shows that there is a lot of potential in the export market and India needs to tap into that sector.
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In 2010, there were only 25 game developers in India, whereas we now have another 250 adding to the list every year. Corporate giants like Paytm, Alibaba, Tencent and even Nazra are investing heavily in the Indian gaming market. Which is currently one of the top 5 countries in terms of mobile gaming. Most of the revenue generated in exports is sponsored by companies like Asus, Oppo which are providing funds to organize and promote export competitions in India. If you are in a position where you can invest in an esports team. Here are the primary ways the team generates revenue and provides value.
1. Advertising
Valuable ads require an esports organization to create content for the audience it wants. A big part of this is through Twitch. Many esports organizations require them to stream their esports players. They also have a dedicated section for streamers. who never compete. How esports organizations market their players and bring authenticity to the brand. This is vital to their success.
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Seeing more in media production and providing quality content that reaches audiences in a way that doesn’t look like the team is sold to sponsors. But a healthy beneficial relationship. Their success comes down to identifying an opportunity and seeing which content creators are willing to take advantage of it. This is how advertising revenue is brought in as an esports organization. These deals also include the rights for players to advertise on different streams
2. Sponsorship
Major non-endemic brands are entering exports every month. Brands from all walks of life from fast food to athletics apparel are involved in the export. Some brands are focused on events and leagues, such as Nike’s big four-year deal with League of Legends Pro League. Other brands are focused on individual players or teams. Red Bull’s deep partnership with OG is a great example. Because the brand has done well to capitalize on the massive audience of the game. Also, Adidas’s sponsorship with Ninja has done a lot to enhance its own brand value.
3. Winning Tournaments
What many may not realize is that a portion of their victories ultimately goes to the organization itself. While there is no doubt that team organizations value their teams succeeding in competition, it is not universal in fact for team organizations to deduct tournament wins.
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4. Revenue Sharing
Unlike traditional sports, many top leagues include revenue sharing agreements. Where the revenue generated by the league is redistributed among the different teams. League level revenue channels usually include the above channels. Through which teams earn revenue (except for winning tournaments). In addition to sponsorship, advertising and sales, leagues generate revenue in the following additional ways.
Source – Google