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New Century Cyber Technologies, Inc.

5 REASONS TO INVEST IN eSPORTS

on Dec 21 2017

The eSports market is booming and the success of the new industry is surpassing even the most optimistic expectations. This success is not entirely unexpected, however, and rather stemming from the market's resilience. With that said, the market's unprecedented growth is providing excellent opportunity for investors looking to be a part of the emerging industry. With more and more companies becoming involved with eSports, the time for investing in eSports has never been more right. Here five reasons why.

 1-Entertainment Value

eSports and gaming are transcending the conventional entertainment. Most recently, Activision compared Call of Duty copies sales to Thor Ragnarok ticket sales rather than with another game. This is the trend that will only continue as games become gain more entertainment value and VR gains its footing. eSports takes the games' entertainment value and combines it with the spirit of competition. More and more people are electing to watch an eSports game over going to the cinema or watching a sports game. The audience for the year of 2017, according to Newzoo, is over 150 million active enthusiasts, and 160 million occasional viewers. These figures will only continue to grow

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The second component of the entertainment value are the arenas, specialized venues outfitted for competitions. Countries like China, US, Russia, Spain, Netherlands, Germany, UK, South Korea, and others have multiple eSports Arenas that attract thousands of fans and interested viewers. The demand for physical viewership is as large as the one for the virtual

2-Brand Synergy

Professional sports teams and other companies are always seeking ways to increase their reach and to envelop new audiences. They create apps, host events, strike partnerships. Lately, they have been closely working with eSports, with prominent global brands like Golden State Warriors, Cleveland Cavaliers, and PSG all creating their own eSports teams. Red Bull has been a long-time staunch supporter of eSports, hardware companies like Razer, Asus, and Acer are big players in the arena, and now even telecom companies like T-Mobile are becoming involved.


This synergy of brands under the eSports banner will ensure longevity of this industry and take it to new heights. 

3-Sponsorships, Prizes, Celebrity


One of the reasons why eSports became so popular is the prize money. The tournaments are hosted worldwide, with television contracts and paid streams and teams traveling from all over the world. They are attracted by multi-million dollars prizes and the promise of celebrity. Significant prizes attract top talent leading to better viewership and more interest from the media and neutral spectators. These prizes are projected to increase, as has been the case with other sports

While some are attracted to the prizes, which is certainly a good incentive, some want celebrity. Players become famous and gather a following, fostering relationships with their own audience. Many host their own Twitch streams or run YouTube channels, increasing appeal and audience. 

The prizes and celebrity attract not only people, but also sponsors. Behemoth teams like Cloud9 attract top dollar from big corporations, but even smaller teams are able to cultivate relationships with sponsors eager to get into the booming market

4-Innovative Industry

An industry with great prizes, great spirt, and great competitiveness is bound to bolster innovation. Already, there are many companies looking to make a mark in the market, providing their unique solutions to benefit the industry. One such company is iCTABLE. iCTABLE is the world’s first eSports Machine, and the company is working on implementing it as the standard across eSports competitions worldwide. The beautiful hardware and modular design are appealing to a wide range of users and they just look stunning. 

Another great example of innovation in eSports is the addition of blockchain. Blockchain has the potential to supercharge eSports, creating a transparent earning system, for example. Combining two innovative industries will certainly lead to fantastic results, and it will be engrossing to see what fruits will be born out of this union.

5-Community

The most important pillar of eSports is its community. The community is the guarantee of success, because their infectious enthusiasm is elevating the industry to new heights. One of those company, eSports Universe, is leading a community of several thousands of people and are hosting multiple small tournaments between players looking to become professional players in the future. Many of these people have been involved since the inception, and they are driving the entire eSports forward. It is known that when creating a new product or service, creating a community is one of the crucial steps. With eSports, the community is already there. 

Conclusion

Investing in eSports has never been more obvious. The market has enormous potential, the market is stable, the market has the right parameters to grow. What makes investing in eSports almost a sure bet is the fact that many companies involved in eSports have not raised much outside capital or are just beginning the process. This provides investors with a unique opportunity to invest in early-stage companies with lower risk than investing in a similar companies but in different markets. 

Dmitry Zhuravlev

Vice President

New Century Cyber Technologies, Inc.