Streaming services have gradually gained popularity, as technology continues to evolve with different genres of content on the Internet. While movies, web series, and animes, among others, have recently gained popularity, e-sports streaming has garnered popularity on the back of the rise of competitive gaming in India The launch of games such as Battlegrounds Mobile India, Free Fire and Call of Duty, among others, have facilitated the growth of the Indian gaming sector. “India’s love for e-sports and gameplay streaming came to light during COVID-19 on the back of the battle royale genre. Since then, the growth of the e-sports and gaming creator economy has been unprecedented. Youtube and Twitch channels of such gamers have millions of followers while e-sports tournaments attract viewership of similar magnitude. Everyone expected significant market growth in the game development sector. But what is even more interesting is the pace at which the creator economy is booming in the gaming segment. The gaming creators/influencers/sports persons are proving to be the new age celebrities commanding significant sponsorship and advertisement revenues by leveraging their massive community-based audience,” Dhruv Garg, tech and policy lawyer, told BrandWagon Online.
The Indian gaming industry clocked revenue worth $3.1 billion in FY23 and is expected to grow to $7.5 billion by FY28, as per Lumikai, a gaming-focused venture capital fund. The non-RMG and e-sports segment is expected to grow by 24% for the FY23-28 period, on the back of the availability of quality titles as well as the surging popularity of e-sports and gaming personalities, according to a report by Ernst & Young (EY). Furthermore, the global game live-streaming audience accounted for 810 million in 2021 and is expected to grow at a compound annual growth rate (CAGR) of 16.3% to 1.41 billion by 2025.
Streaming live: e-sports!
E-sports streaming is slowly going mainstream as platforms such as YouTube, Twitch, Rooter and Loco, among others have started to gain popularity. Additionally, competitive tournaments being live-streamed on these platforms have also got the ‘ball rolling’ for e-sports streaming as a source of entertainment. Industry experts believe that streaming and e-sports are linked, creating a symbiotic ecosystem that benefits players, teams, fans, and the community. For example, KRAFTON collaborated with JioCinema and Loco for the live stream of Battlegrounds Mobile India Series 2023 and the early broadcast of Battlegrounds Mobile India Pro Series 2023, respectively. “India’s e-sports and streaming sector for free-to-play games are on the brink of exponential growth. The All India Game Developer’s Forum (AIGDF) is dedicated to supporting its evolution into a form of mainstream entertainment, potentially surpassing OTT platforms. With increasing internet penetration and affordable smartphones, interest in e-sports and free-to-play games is surging nationwide. The blend of competition and community in-game streaming is becoming a cultural phenomenon, creating new career opportunities in content creation. Prospects in e-sports have also been acknowledged by the Ministry of Youth Affairs and Sports, which is paving the way for its structured development and international representation,” Roland Landers of AIGDF.
Approximately, 47% of respondents watched an e-sports tournament in a month while 20% watched more than three e-sports tournaments in a month, as per a FICCI-EY report. Approximately 30% of respondents watched game streams daily with 45% spending more than two hours watching game streams. According to industry experts, e-sports players earn through ad revenue on platforms such as Twitch and YouTube, where ads displayed on their streams can lead to earnings, especially for those with large followings. Furthermore, direct support from viewers through subscriptions and donations can also contribute to the player’s income. Success in tournaments boosts a player’s reputation while attracting viewers to their streams, increasing their earning potential. As players grow their online presence, they become attractive to sponsors. “E-sports teams are capitalising on streaming by securing exclusive rights deals with streaming platforms, ensuring their tournaments are viewed by a wide audience, which in turn generates direct revenue and increases visibility. They are also investing in creating diverse content, including behind-the-scenes looks, player interviews, and highlight reels, keeping fans engaged and opening additional revenue streams through advertising and sponsorships,” Karan Pathak, associate director- e-sports, KRAFTON India, highlighted.
Streaming offers e-sports athletes a direct line with their audiences which results in higher engagement. Industry experts opine that streaming has democratised the e-sports landscape as it continues to be vital aspect of their business models, allowing for an additional revenue stream and providing a platform for engagement and fan base expansion.
E-sports for ‘mainstream’ entertainment?
Industry stakeholders point out that streaming of e-sports has allowed for an additional revenue stream, and provides a platform for engagement and fan base expansion. “Teams actively manage their players’ streaming schedules, content creation, and online presence, recognising the value that comes with a strong online following,” Pathak added. Experts believe that teams are not able to capitalise on tournaments much, because of various restrictions imposed by the tournament organisers in terms of non-competition. However, teams monetise by placing brand logos on their team kits, which are later, broadcast in front of an audience. While there are multiple ways for an e-sports player to earn, a significant portion of their earnings come from YouTube’s ad revenue. “Firstly, there are brand sponsorships, where creators are sponsored either on a one-time basis or for the long term. Then there are YouTube memberships, where the audience purchases a paid subscription to support the player. Thirdly, there are donations made during streams and super chat payments, which involve paying to have a message highlighted in the chat. However, the most significant source of income is often YouTube ad revenue, upon which most players heavily rely,” Rohit Agarwal, founder and director, Alpha Zegus, highlighted.
Furthermore, experts highlighted that streaming has upped the earning potential of e-sports players and teams, providing a direct avenue for players to connect with fans, showcase their skills, and monetise their passion for gaming. Streaming offers a means to expand their reach, attracting sponsors and diversifying revenue streams beyond traditional tournament winnings, for teams. “Both endemic and non-endemic brands recognise the reach and engagement potential within the e-sports audience, making gaming an attractive market for advertising and brand placement. E-sports teams and players, with large and dedicated fan bases, offer brands an effective platform to connect with the elusive gaming demographic. These partnerships often include collaborations on branded content, product endorsements, and event sponsorships,” Animesh Agarwal, founder and CEO, 8Bit Creatives and co-founder, S8UL, stated.
E-sports streaming on different platforms has given rise to different opportunities within the space, helping it grow and expand. Streaming continues to be a crucial outlet for e-sports teams and players to bring in revenue.