Why invest in esport?

Electronic sport is the recent trend around the globe with the rise of technology. Competitive gaming has been around for over 40 years now, ever since the development of the first video game; however, its popularity only peaked recently.

With the development of high-speed internet and advanced gaming gear, online gaming underwent a revolution, resulting in esport events being held on a global level in the last decade or so.

Today, this industry is growing faster than ever, with consistent advancements and significant investments. The size of its market grew as a result of its global popularity. Investment in esport is a good idea for various reasons.

How the industry operates

The most important thing to look at before investing in something is the overall operation scheme of the industry. The esport industry is now picking up pace, with hundreds of hours of the content generated from these tournaments being watched by the audience.

There are a few significant parties involved in the business. Players are the ones on the field. Professional esport players play for hours and gain tons of experience before being actual professionals. They undergo many “training” to become a specialized athlete, especially in a particular game.

There are two main aims professional players seek to fulfill: streaming content or playing in tournaments to make money. Live streams of them playing a game get hundreds and thousands of viewers depending on their game proficiency.

Upcoming esports trends

Like how it is done with traditional sports, franchising is expected to talk over the esports business. Some games like League of Legends have already announced plans for franchising a branch of their events in North America.

Media rights are expected to generate growth for the industry as media is the prime reason for its success. Organizers will start allocating media rights to specific outlets, which will help create a brand image and help generate more revenue.

Investment opportunities in esports

The current pace of the industry’s growth can be compared to that of social media in the early 2000s. Many companies grew fast in their early days and developed their monetization strategies later down the road. As a result, those companies became multi-million dollar industries.

Companies like Facebook and Amazon are now investing in these businesses too. This means there is a lot of potential for growth in the industry, and hence it is an excellent investment opportunity.

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