With one of the fastest-growing fan bases in the entire entertainment industry…
A global audience that’s already bigger than many traditional sports leagues…
And players that are becoming overnight millionaires…
Esports have officially arrived.
But some think this is just the beginning.
For one, fans are already spending more time watching gamers than HBO, Netflix and Hulu – combined. More than that, however, the industry still in its early days…
That’s why even media masters like Tom Rogers are getting involved.
He was the CEO of TiVo before creating CNBC and then bringing both Netflix and Amazon to our screens…
Now, he believes the future of the media industry is in gaming.
That’s why he’s bringing his company, WinView Games, together with Frankly Media and Torque Esports (TSX.V:GAME, OTCMKTS:MLLLD) in a mega-merger that could send ripples throughout the industry.
And he’s not alone.
Over 400 of the smartest angel investors, venture capital firms and accelerators have already joined the race.
Here are three trends everyone needs to know about the esports race:
#1 – The Streaming Wars Are Heating Up
Just last year, viewers spent over 6.6 billion hours watching their favorite players online.
That’s why Amazon (NASDAQ:AMZN) paid nearly $1 billion to acquire streaming giant Twitch.
Amazon’s Twitch.tv, as the de facto leader in the space, with over 15 million unique visitors per day, has become so engrained in the industry that new video game consoles even have the platform’s streaming functionality built in.
It’s so popular that it accounts for 1.8 percent of peak internet traffic.
Even Microsoft (NASDAQ:MSFT) is looking to get into the game with its acquisition of Mixer, another streaming service.
In fact, eager to get new subscribers, Microsoft paid a rumored $100 million to get Fortnite superstar Tyler “Ninja” Blevins on its platform.
While Amazon and Microsoft face off, however, another company is quietly operating in the shadows of the streaming boom and positioning itself to fill a key role in the industry.
Torque (TSX.V:GAME, OTCMKTS:MLLLD) has already made a name for itself in the esports world with its involvement in events, development and hardware production, but thanks to its acquisition of Stream Hatchet, it’s now a major player in the data analytics game.
A necessity to any business looking to take advantage of the streaming trend.
Gathering viewer data from platforms like Twitch, YouTube and more, Torque is able to create in-depth reports that help companies improve engagement, and in turn, profits.
The best way to make serious inroads in this burgeoning new industry is to know exactly what viewers are doing and why they are doing it, and Torque (TSX.V:GAME, OTCMKTS:MLLLD) knows exactly how to take advantage of this information.
Understanding how players interact with the games helped developers create hits like Take-Two’s (NASDAQ:TTWO) Grand Theft Auto V, which clocks as the third highest selling video game of all time, generating over $6 billion in revenue.
Thanks to the data they’ve collected, they have been able to create entire universes for their player bases, packed with compelling stories and interfaces that truly transport gamers into the world’s they’ve created.
#2 –Big In Asia
Currently South Korea is the place to be for esports in Asia, but China is quickly gaining momentum.
The Chinese government made headlines earlier this year when they officially recognized the roles of “esports professionals” and “esports operators” as official job titles in the country.
Not only that, esports-related majors have been added to many of the country’s national colleges.
Even entire cities are competing to reel in esports professionals.
Hangzhou, the capital of Zhejiang Province in east China, created a US$280 million, 39.4 million-square-foot, officially designated “esports town” which it hopes will draw in hundreds of millions of dollars in revenue every year.
And one Chinese streaming company, Huya (NYSE:HUYA), is on track to propel this new craze into hyperdrive.
As a part of its ambitious and aggressive plan to capture its share of the Asian markets, Huya is looking to partner with some of the top teams in the business, and it’s got a massive war chest to help its cause.
The streaming giant is already a force to be reckoned with, but it’s only going to grow from here.
Another major player in the Asian market is Tencent Holdings (OTC:TCEHY).
The Chinese tech giant responsible for WeChat and QQ has not ignored the video game boom.
Not only is its subsidiary Riot Games responsible for one of the world’s most played esports, League of Legends, boasting over 89 million players, it has also taken significant stakes in other game developers.
Tencent’s portfolio includes shares in Activision, Ubisoft, and even a 40 percent stake in Epic Games, producer of Fortnite.
#3 – Wheelin’ and Dealin’
The growth of the esports craze has led to a number of massive deals in the sector. From Amazon’s billion-dollar Twitch splurge to Tencent’s string of strategic acquisitions, staying ahead of the pack is an expensive – but lucrative – business.
Though Amazon and Tencent might get the most attention in this field, smaller companies like Torque Esports (TSX.V:GAME, OTCMKTS:MLLLD) are making major moves, as well.
Torque, for its part, has made headlines with its acquisitions of Eden Games, a developer whose hit mobile game Gear Club has over 6 million downloads to date, and it’s nearly completed deal which will also give it a major stake in Allinsports, a motorsport simulator manufacturer, founded by ex-Formula 1 engineer Anton Stipinovich.
Torque’s focus on the motorsports niche in esports allowed it to create one of the sector’s most popular racing events: The World’s Fastest Gamer.
In just the first season of the competitive racing league, with a prize worth $1 million, World’s Fastest Gamer became a global hit.
It was broadcast in 48 countries through 86 global broadcasters, including ESPN, CNBC and Fox Sports. The show, sponsored by McLaren F1, reached an estimated 400 million households.
And it’s wheeling and dealing doesn’t end there. It’s also secured major partnerships with Nintendo and Porsche through its acquisitions.
As an industry, video games have surpassed nearly every other form of entertainment. Revenue has tripled since 2000—rising from less than $50 billion to more than $120 billion per year.
Estimates have the industry doubling again, to $300 billion by 2025.
By. Nick Hawes
IMPORTANT NOTICE AND DISCLAIMER
PAID ADVERTISEMENT. This communication is a paid advertisement. Safehaven.com, Leacap Ltd, and their owners, managers, employees, and assigns (collectively “the Publisher”) is often paid by one or more of the profiled companies or a third party to disseminate these types of communications. In this case, the Publisher has been compensated by Torque Esports Corp. to raise public awareness about the company. Torque Esports Corp. paid the Publisher fifty thousand US dollars to produce and disseminate this and other similar articles and certain banner ads. This compensation should be viewed as a major conflict with our ability to be unbiased.
Readers should beware that third parties, insiders, and/or their affiliates may liquidate shares of the profiled companies at any time, including at or near the time you receive this communication, which has the potential to hurt share prices. Frequently companies profiled in our articles experience a large increase in volume and share price during the course of public awareness marketing, which often ends as soon as the public awareness marketing ceases. The public awareness marketing may be as brief as one day, after which a large decrease in volume and share price may likely occur.
This communication is not, and should not be construed to be, an offer to sell or a solicitation of an offer to buy any security. Neither this communication nor the Publisher purport to provide a complete analysis of any company or its financial position. The Publisher is not, and does not purport to be, a broker-dealer or registered investment adviser. This communication is not, and should not be construed to be, personalized investment advice directed to or appropriate for any particular investor. Any investment should be made only after consulting a professional investment advisor and only after reviewing the financial statements and other pertinent corporate information about the company. Further, readers are advised to read and carefully consider the Risk Factors identified and discussed in the advertised company’s SEC, SEDAR and/or other government filings. Investing in securities, particularly microcap securities, is speculative and carries a high degree of risk. Past performance does not guarantee future results. This communication is based on information generally available to the public and on an interview conducted with the company’s CEO, and does not contain any material, non-public information. The information on which it is based is believed to be reliable. Nevertheless, the Publisher cannot guarantee the accuracy or completeness of the information.
SHARE OWNERSHIP. The owner of Safehaven.com owns shares and/or stock options of the featured companies and therefore has an additional incentive to see the featured companies’ stock perform well. The owner of Safehaven.com has no present intention to sell any of the issuer’s securities in the near future but does not undertake any obligation to notify the market when it decides to buy or sell shares of the issuer in the market. The owner of Safehaven.com will be buying and selling shares of the featured company for its own profit. This is why we stress that you conduct extensive due diligence as well as seek the advice of your financial advisor or a registered broker-dealer before investing in any securities.
FORWARD LOOKING STATEMENTS. This publication contains forward-looking statements, including statements regarding expected continual growth of the featured companies and/or industry. The Publisher notes that statements contained herein that look forward in time, which include everything other than historical information, involve risks and uncertainties that may affect the companies’ actual results of operations. Factors that could cause actual results to differ include, but are not limited to, changing governmental laws and policies impacting the company’s business, the size and growth of the market for the companies’ products and services, the companies’ ability to fund its capital requirements in the near term and long term, pricing pressures, etc.
INDEMNIFICATION/RELEASE OF LIABILITY. By reading this communication, you acknowledge that you have read and understand this disclaimer, and further that to the greatest extent permitted under law, you release the Publisher, its affiliates, assigns and successors from any and all liability, damages, and injury from this communication. You further warrant that you are solely responsible for any financial outcome that may come from your investment decisions.]
TERMS OF USE. By reading this communication you agree that you have reviewed and fully agree to the Terms of Use found here http:// Safehaven.com/terms-and-conditions If you do not agree to the Terms of Use http:// Safehaven.com/terms-and-conditions, please contact Safehaven.com to discontinue receiving future communications.
INTELLECTUAL PROPERTY. Safehaven.com is the Publisher’s trademark. All other trademarks used in this communication are the property of their respective trademark holders. The Publisher is not affiliated, connected, or associated with, and is not sponsored, approved, or originated by, the trademark holders unless otherwise stated. No claim is made by the Publisher to any rights in any third-party trademarks.
