Teams typically participate in tournaments organized by independently-owned leagues. Although organizers make money from ticket sales and merchandise sold to in-person audiences, they also sell media rights to distributors. Online networks and apps function as the primary distribution channels for eSports, although traditional distributors are showing increased interest, and understandably. In , eSports enthusiasts around the world are expected to watch 6.
As with other sports, teams don brand logos on their jerseys, and promote product during competition and on their social media channels; distributors sell advertising slots around the events. Indeed, sponsorship sales and advertising are the largest sources of revenue for teams, organizers and distributors. For investors interested in participating in the eSports trend, the direct route is via publicly-traded companies that organize leagues and festivals. Other avenues are game publishers who create titles aimed at the eSports market and media companies involved with distribution of eSports video content.
And as in traditional sports, online gambling is another indirect beneficiary of these unique sporting events. Would you like to help us improve our coverage of topics that might interest you? Tell us about yourself. How should investors think about the recovery as the U. Headwinds for the U. Will it be a hard, bumpy or soft landing from the highs of ?
Search Go. Related reading. Note: eSports audiences count global unique online viewers. The information presented does not involve the rendering of personalized investment, financial, legal, or tax advice. Certain statements contained herein may constitute projections, forecasts and other forward looking statements, which do not reflect actual results, are valid as of the date of this communication and subject to change without notice.
Information provided by third party sources are believed to be reliable and have not been independently verified for accuracy or completeness and cannot be guaranteed. The information herein represents the opinion of the author s , but not necessarily those of VanEck.
All investing is subject to risk, including the possible loss of the money you invest. As with any investment strategy, there is no guarantee that investment objectives will be met and investors may lose money. Diversification does not ensure a profit or protect against a loss in a declining market. Past performance is no guarantee of future results.
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