As online gaming continues to see a rise in India, it seems one particular genre that is, esports have found its share of takers in India. Battlegrounds Mobile India Series, is set to be live-streamed on JioCinema from August 10 – October 14. Recently concluded Battlegrounds Mobile India Master Series season two (BGMS) was broadcast on Star Sports from August 4-27. The esports tournament was also streamed on the platform Rooter. Over the years, esports has gained much popularity in India and is now being streamed across platforms including streaming platforms such as Rooter, JioCinema besides YouTube – which is the market leader and now on linear TV channels such as Star Sports, besides Viacom18 Sports. “Young kids, mostly under the age of 18, are not watching football and cricket but are watching esports. However, the monetisation of the sport has been difficult as there might be advertisers who would not want to associate themselves with certain types of games and would rather invest in more recognised properties including the English Premier League, IPL and NBA. Esports allows broadcasters to acquire aspirational audience,” a senior media analyst said on the condition of anonymity.
India’s esports market is projected to grow to reach Rs 880 crore in 2023, as per market research firm, Statista. Furthermore, the revenue is expected to reach Rs 1410 crore at a compound annual growth rate of 12.47% by 2027. In FY21, there were around 17 million viewers of esports in India. The number of viewers was almost double that of 2019. In markets such as the US, Europe and China, esports tourneys such as Formula 1 (F1) is broadcasted across digital platforms including YouTube, Twitch, Huya, and Facebook, besides TV channels such as SkySports F1, Viaplay and ESPN.
Esports’ serious play
To be sure, Covid gave a much-needed boost to the industry. Such has been the growth rate that it is estimated that in 2025, there will be around 85 million viewers of esports events on 20 different platforms making India one of the fastest-growing markets for esports viewership, according to Statista. “The influx of mainstream viewers, drawn by the reputation of television has the potential to attract increased investments from advertisers, sponsors, and brands eager to tap into this newfound audience and its engagement. Hence the entry of esports into the mainstream is a win-win situation for the sector as it not only introduces esports to a wider audience but also enriches the existing esports ecosystem,” Animesh Agarwal, founder and CEO, 8Bit Creatives, a gaming talent management firm, explained.
Esports was recognised as a multi-sports event by the Indian government in December 2022 and eTigers were the first Indian team to qualify for the global competition, FIFAe Nations Cup According to a gamer survey by EY-Loco, 61% of respondents had participated in esports events. Furthermore, 45% of respondents spent over an hour per game-playing session and around half were willing to pay for in-app purchases.
BGMS season one clocked approximately 200 million views across Star Sports, Loco and Glance. According to various media reports, BGMS season one clocked 1.2 impressions on day one and 12.3 million views through the first eight days of broadcast on TV. Moreover, the day-one numbers beat the impressions of other sports competitions including the Australia Open 2022, the French Open day one and UEFA Champions League Semi-Final 2022. “The strategic alignment of platforms like StarSports and JioCinema highlights the evolution of esports into a cultural phenomenon, captivating diverse audiences across the country. Building on BGMI’s impact, we’re ushering esports and gaming into a new phase, nurturing both emerging talents and established athletes, propelling it into the mainstream,” Sean Hyunil Sohn, CEO, KRAFTON India, said.
Raking in the moolah!
One of those genres of games which has not been adversely impacted by the recent changes in the goods and services tax as it still is required to pay just 18% GST on platform fees, esports over the year has seen money following in from two-three forms. To begin with, the industry rakes in revenue worth Rs 800 crore from in-app purchases of games publicised by esports tournaments. This revenue is expected to grow to Rs 1,400 crore by FY25. Furthermore. The industry earned a total of Rs 520 crore from streaming, sponsorship syndication and prize money. The sports genre earned the most that is, Rs 310 crore from streaming rights, another Rs 170 crore from sponsorship and syndication and another Rs 40 crore as prize money. “Sponsorships make up the majority of the contribution toward the prize pool for any tournament. Companies often use tournaments as an avenue to enter esports and gain access to the video-gaming community by providing hardware or gaming peripherals support. We’re also observing a notable trend where esports is making its presence felt on mainstream television,” Lokesh Suji, director, Esports Federation of India (ESFI) and vice president, Asian Esports Federation, said.
Interestingly, InMobi’s platform data suggests that 34% of all ad spends was on game apps between January and July 2022. Additionally, there has been a 60% year-on-year growth in the volume of advertisers investing in mobile game advertising. “Some of the biggest TV channels are now broadcasting top esports IPs, while digital streaming has improved through the integration of apps like Rooter across connected TVs. Together, they serve millions of households in the country,” Piyush Kumar, founder and CEO, Rooter, explained.
Even as advertising is a new avenue especially for broadcasters in the realm of esports since it is only the second season of Battlegrounds Mobile India Master Series (BGMS), there is enough potential. “Tech companies, snacking brands, gaming gear, and financial services brands all can have a slice of this action. Adrenaline-packed esports tournaments are a grand slam of opportunities for brands and agencies alike,” Krishna Iyer, director-marketing, MullenLowe Lintas Group, said.
Abetting betting
As of December 2022, the best-performing BGMI eSports team was Soul, with earnings worth more than $1,76,000. TSM was surpassed by 7Sea Esports which earned $85,000, as of December 2022, as per Statista, latest finding. Not to mention, that the brief ban on Battleground Mobile India (BGMI) also impacted the esports sector. The number of titles (mobile+PC+console) fell to 10 in 2022 when compared with 13 in 2021. It is expected to increase to 15 in 2023 as BGMI has been relaunched in India. The ban had an impact on the prize money as the ban led to the prize money being of similar amount during 2020 (Covid year). According to industry estimates, an average esports player earns between Rs 50,000 – 1,00,000. “An average esports player earns about a 30% share of each prize money is distributed amongst the team members. Players from bigger teams have even higher numbers than these,” Rohit Agarwal, founder and director, Alpha Zegus, a gaming and lifestyle marketing agency, highlighted.
And it is here where the catch resides. So far esports as a category hasn’t witnessed much betting. This is also a reason why the GST council has refrained from hiking the slab to 28% as there is no wager involved. However, revenue in the sports betting market in India is projected to reach $79. million in 2023. Interestingly, an industry who did not wish to be named, claims that in India, esports betting is yet to find ground.