HONG KONG, CHINA - Media OutReach- 2 April 2019 - The explosion inpopularity of eSports is creating new avenues for the media and entertainmentindustry to reach a wide range of demographics and generate unprecedented,lucrative opportunities. The franchise model, which facilitates profit sharingwithin the eSports ecosystem and incentivizes new investment, will propel itsdevelopment into a fully-fledged industry, according to the latest report ESportsgraduates to the big leagues from Deloitte's Centre for Technology, Media &Telecommunications.

Citing anearlier Deloitte Digital Media Trends Survey, the report says that half of GenX respondents play video games at least once a week, almost as often asmillennials and Gen Z respondents. Gen Xers lead all generation in the amountof time they spend playing games on mobile. Although older generations mightdismiss video games, their children have grown up with them and continue toplay on consoles, smartphones and PCs.

"Thegrowing popularity of eSports has spawned new opportunities for companies alongthe value chain of the media and entertainment industry, whether these are relatedto game development, marketing or computing hardware. The industry is poisedfor explosive growth driven by rapid advances in digital technology," saysTaylor Lam, Deloitte ChinaTelecommunications, Media and Entertainment Sector Leader, citing Deloittefindings that the global eSports market is expected to generate USD1.5 billionin annual revenues, primarily from the exposure of sponsorship and advertisingto an estimated global audience of 600 million fans.

Thereport highlights the franchise model's emergence as a catalyst of concertedefforts to transform eSports into a fully-fledged industry. Typically,franchises help establish revenue sharing among games, events, merchandisingand players, as well as ensure minimum requirements for pay, benefits andtraining facilities. They also play a pivotal role in advancing industry governance,ensuring integrity and combating fraud, especially given the rising importance ofcybersecurity to secure data and analytics and prevent vulnerabilities andintrusions.

Accordingto the report, eSports offers a new channel for businesses to engage and evolvewith their audiences and transform to meet the changes brought about by digitaldisruption. It is a new, modern way of storytelling that helps bring targetaudiences into a more interactive and immersive narrative experience throughborderless online networks. 

"However,businesses need to understand the industry's nuances before moving into theeSports arena and should work to understand their audiences and exhibit anauthentic interest in their dedicated games by partnering with teams, playersand leagues, as well as leading streamers and streaming networks,"explains Nikki Wang, Head ofSports Business China, Deloitte China.

TheeSports landscape is evolving rapidly, becoming more inclusive, interactive andimmersive than ever. The report underscores the importance for media andentertainment companies of building relationships with players, leagues andspectators, exploring new merchandise opportunities with downloadable digital content,and enhancing the viewing experience for eSports audiences. Advertisers,meanwhile, should see how to better connect with audiences by moving away fromlinear, broadcast channels to social media, streaming and eSports arenas.

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