[Show] Inside The Game - Official Thread - Page 177

You guys on Inside The Game really dropped the ball tonight when discussing the MLG PPV. You seemed just to go with the flow even while realizing that if this was to be the model it was done too quickly by MLG. They just showed the qualifiers for free and guessed based off that they might be able to bank $20 from a majority of viewers based off the hype from those qualifiers.

When discussing this new idea let’s compare it to the NFL. The games that are broadcasted on TV are essentially free when you consider that when you purchase cable you have access to everything and despite paying for cable if you were to price every show you had potential access to throughout the month that each show is worth less than a cent. With that in mind the NFL is still BIG business. The model allows for all parties to get what they want out of the deal. The NFL gets money by selling the rights to broadcast their game on your network. The network gets money by charging advertisers a fee for the slot during the game. The advertisers get a consideration by the viewers that when they are purchasing a certain product that their specific product is in consideration. And finally the viewers get to watch the NFL game. In the end everyone gets what they want out of the event. Everyone scratching everyone else’s back with money in some form.

In this scenario compared to MLG if one back isn’t scratched it is because they’re doing something wrong. They shouldn’t need extra money to survive. They all have potential for growth in this form as well. MLG creates this sick new Winter Arena. It entices more viewers. MLG can now command more money per event from their advertisers. Their advertisers can see that this thing they’re investing their money in is gaining more interest and their product is getting more recognition making their expense worth it. The viewer is now able to watch a WCG style event that is actually has the potential to product INSANE content.

Now, we move on to why MLG is not only taking a risk that is not worth it, but perhaps are just being greedy because they can be. This current model alienates a ton of viewers in a very limited market from viewing perhaps one of the best events of the year. When you alienate that amount of people even for one event, and even if you don’t actually use advertisers for that event, those advertisers can still view the stream numbers and back out of sponsoring future events based off a belief that Esports is trending down all because MLG wanted to make a quick buck today rather than invest in the future. MLG keeps making the argument that they are not a profitable company. A caller linked DJWheat to an article which was indeed written in 2009, but if it is a factual article from Fnatic then some inferences should be made from it. If indeed during the 2009 year MLG did generate 50 million dollars in revenue one should assume that the years proceeding 2009 they made more. Starcraft 2 was not out during the 2009 season and I believe was only in the latter part of 2010, but with Starcraft 2 came a fuck ton of new viewers. With their numbers continually growing per event being run MLG should have been able to secure more money from advertisers. If Dr. Pepper, Doritos, and the HorseGuy (centaur) thought it was worth paying a certain amount for X amount of viewers they should think that paying X + more for more viewers would be worth it as well. Now, if we infer that everything so far is true they now have even more than 50 million dollars in revenue in 2011. In 2011 they also ran the same amount of events as they did in 2010(1), but there was more money to be made in 2011 and yet they claim to be fueling it all into esports. They did in 2011 have a few extra programs going on mainly the online shows, but those shows should not have cost them much of the extra profit that was made in 2011. Now, again inferring that all of this is true there is money missing. The extra money obtained from sponsors by product of their advertisements being seen by more eyes. Where did it go? I don’t know.

I like to question the larger organizations in the classic way by asking are you bullshitting us? Is MLG really struggling despite obtaining more viewers at every event? If you only bring in 50 million dollars revenue and claim you have 50+ million in liabilities each year what is your biggest liability? Is it Sundance’s paycheck? How does a company struggle every year since inception and still exist? Why if you’re struggling would you hold an event with a format this expensive? Why when you have such an awesome tournament coming up would you change the format to one that has the highest possibility of alienating a vast majority of those who would have watched? If you are indeed fueling esports why not provide a balance sheet for me to ponder on? Perhaps I will spot that you’re paying too much for glue because that is what you must be sniffing if you think you will get even 20% of those who watched MLG Providence to pay $20 for a weekend event.

Now, if my entire argument about MLG being greedy was false. That means one of two things. They are pumping money back into Esports at the perfect rate and Sundance takes home his “fair” share every year the company itself however lives tournament to tournament with only a small cushion. Or. MLG is losing money by doing something wrong. Along the lines there is an issue with money where some side is getting too much or not enough. If MLG signed a 50 year deal with Dr. Pepper for $10,000 per year then they messed up. If MLG rents out their convention centers at $20 million per weekend then they are paying too much. Those are just extremes for the nitpickers out there. Either way MLG needs to trim more fat in the best way possible.

In closing though while I still think this move is a dick move by MLG I’m still fucking paying for what I think will be one of the best tournaments so far for SC2. You can’t beat these TOP ONLY tournaments. I will catch some Assembly, but it will probably be much later on when the weaker players have been weeded out and only during breaks from Winter Arena. I don’t want to support this MLG decision, but there aren’t any barcrafts near me so the rest of you need to take the reins.

1) I don’t know if the number of events in 2010 was equal to for a fact. I can’t find a listing of all the events in both the years, but I was relying on memory.
2) I know I use too many pronouns
3) The inference part is all about making sure that people realize there is potential they're being bullshitted by MLG and to show that the caller who was easily dismissed even though his latter points were completely mute had a valid point in bringing up that if revenue is 50 million and they claim they're pumping 50 million back into it do you really think their end product costs that much?
4) http://www.fnatic.com/scene/6582/mlg-50-million-in-revenue-this-year.html - link to supposed MLG revenue in 2009