Watching esports
  • Blog

    Watching esports

    Russel Chesler, Director, Investments & Portfolio Strategy
    17 August 2021

    Live streaming services are the main viewing medium of esports. A massive nine billion viewing hours took place on the three largest streaming platforms in the second quarter of 2021. More recently, free-to-air networks have televised some esports leagues and championships live. Watching esports is entering the mainstream.

    imagetools0.png

    Around 10 years ago, new technologies gave rise to a variety of new platforms for streaming media content targeting a wide array of traditional broadcast audiences online. Streaming allowed for a new type of social TV that provides an interactive platform for audiences to engage, on a personal level, with their favorite gamer personalities and games. Twitch which is now owned by Amazon was the first streaming platform to be launched. It launched in 2011 and is the largest platform today. The other top streaming platforms include YouTube Gaming Live, Facebook Gaming, Mixer (owned by Microsoft), Caffeine and Steam TV.

    Unlike television, streaming platforms do more than just stream matches and championships. Large crowds of casual gamers and fans get together to watch live video gaming and participate in active chat rooms to discuss the gameplay. Watching top League of Legends gamers explain their strategies is like attending an online webinar at times. Live-streamers on the service that engage live crowds and keeping viewers watching, earn through a combination of subscriptions, donations (known as bits), adverts, sponsorships and merchandise.

    Gamers enjoy the content, enjoying unprecedented exposure. 

    Brands too advertise or run their own channels as a strategy to reach gen-Z and millennial gamers.

    The chart below sets out the top games of 2020 by hours watched

    imagep5ohp.png

    Source: Stream Hatchet

    READ MORE:
    Part 1: The ecosystem
    Part 2: The publishers
    Part 3: The Teams

    IMPORTANT NOTICE 
    VanEck Investments Limited ACN 146 596 116 AFSL 416755 (‘VanEck’) is the responsible entity and issuer of units in the VanEck Video Gaming and Esports ETF (ESPO). This is general advice only, not personal financial advice. It does not take into account any person’s individual objectives, financial situation or needs. Read the PDS and speak with a financial adviser to determine if the fund is appropriate for your circumstances. The PDS is available here.  No member of the VanEck group of companies guarantees the repayment of capital, the payment of income, performance, or any particular rate of return from any fund.

    An investment in ESPO carries risks associated with: financial markets generally, individual company management, industry sectors, ASX trading time differences, foreign currency, country or sector concentration, political, regulatory and tax risks, fund operations and tracking an index. See the PDS for details.