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jmbthirteen
United States10734 Posts
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WikidSik
Canada382 Posts
edit: Didnt Dj Wheat say the same thing happened with counter strike? people were fucking around putting on super expensive shows (and I guess trying to make a profit)? | ||
Holytornados
United States1022 Posts
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Kyir
United States1047 Posts
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Holdenintherye
Canada1441 Posts
![]() I truly had some great times watching them. | ||
TotalBiscuit
United Kingdom5437 Posts
On March 09 2014 12:15 WikidSik wrote: The problem was alot deeper than the NASL, it was the entire NA sc2 scene at the time, where individual profit came before the greater good of the scene. edit: Didnt Dj Wheat say the same thing happened with counter strike? people were fucking around putting on super expensive shows (and I guess trying to make a profit)? This is adorable. Who exactly was making that individual profit? Certainly wasn't NASL. They were millions in the hole, that much was obvious, even looking at the amount they spent on the initial seasons before WCS, it was massive. How do "super expensive shows" generate profit? They don't. They invested in this scene with the hope that given high enough quality, they could become sustainable and they failed. No, in fact, the SC2 scene needs MORE focus on profit, it needs to actually make one, rather than being just a bunch of philanthropy with no hope of ever getting into the black. NASL was set up with the eventual aim of making a profit. It didn't and now it has sunk. What on earth do you mean by "greater good of the scene?". That to me just sounds like some sort of populist buzzword. You said it because it sounded cool and "grassroots" but it doesnt actually mean anything. What makes a scene healthy? Enough money to go around. Stable organisations with an obvious future and the potential to expand. Safety nets, healthy competition, good sponsorship ROI generating further sponsorship interest. What do all of those things require? Profit, because eSports is a business and not a charity. How can it be anything else though? We are talking about the same community that was in open revolt over the notion that MLG would want to run sustainable Pay-per-View invitationals, that won't stop using adblock, that balk at the idea of paying $5 a month for a subscription to a league for HD. That's just the reality we live in, any organisation that supports SC2 is trying to farm an infertile field plagued with rodents, or at least, that's what it feels like from the inside. Please, don't say things like "greater good of the scene", it doesn't mean anything. You mean well, but you don't know what you're talking about and the community hating the idea of profit is part of the problem. You need people to be making a profit because at some point they are going to stop creating content and events on the back of passion, wishes and this distant hope that things will work out. None of those things keep the lights on. | ||
Plansix
United States60190 Posts
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Ansinjunger
United States2451 Posts
Chance, Lauren Elise, Terry, and especially Clutch will be missed. I won't miss Bitterdam too much, they're still around, though not together so often. <3 It's good to see Frodan at Seatstory Cup; he and Gretorp grew on me a lot. Not every caster does that even if they have a large body of work. | ||
WombaT
Northern Ireland24321 Posts
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TotalBiscuit
United Kingdom5437 Posts
On March 09 2014 12:58 Plansix wrote: TB dropping the truth. There is a reason that the majority of Dota 2 events start online with an offline finals. Events need to focus more on staying in the black and not wasting money trying to please every end of the community. In the case of DOTA it's even more important because of the huge travel costs associated with flying 5 people per team around minimum. DOTA2 started off right though, Valve built tools into the game to increase sponsor ROI and for teams to monetise and make some money by selling tickets and custom items/couriers. Their crowdfunding model for TI4 is savvy, they are innovating on all fronts and of course they have the benefit of just being a more popular game. SC2 popped up just a little too early, I feel if it had come later it would have been able to learn a lot of lessons from the successes of LoL and DOTA2. We started off as the biggest eSport and then we got overtaken but wanted to try and maintain the same kind of size. We can't, we have to focus on sustainability. We are fortunate that Blizzard is bankrolling WCS in that regard but other events either have to diversify the games they cover (which is why ESL covers League and DOTA, because thats where the money is) or rebuild a sustainable model from the ground up. Clan Wars is an example of that. Clan Wars is running in the black. Barely (and only by virtue that I'm feeding it with my personal opportunity cost), but it's making a small profit for MLG and we planned it to work out that way. I don't honestly see much of a future for SC2 only offline events outside of WCS or smaller venue stuff like Red Bull Training Grounds, at least in the long-term right now. This is how I see 2014 working. WCS live events, operating solely due to Blizzards good will. Nobody is making money on this, no fucking way. Multi-game live events such as Dreamhack, IEM and MLG, the Starcraft component of which will be smaller than other games, will probably pull its weight but could not exist on its own without the multi-game focus of the event. Even TakeTV is having to do this now with Hearthstone. A very small number of premium SC2 live events in the best possible locations with high ticket prices. Only a few cities can really support this, most likely New York and Toronto, maybe LA at a push. Unlikely to succeed without significant backing from a large organisation such as Red Bull and absolutely unlikely to make a direct profit, would need to benefit the organisation in other ways. Smallish regional events such as Lonestar Clash, driven primarily by volunteers. Nobody is making money here either. Online events. Where the biggest potential lies to make something happen, but it won't be from Twitch ad revenue because the cpm and fillrate are too low and too many people adblock to make that even remotely viable. Leveraging sponsorships correctly, improving ROI through the use of Gameheart sponsor overlays, diversifying possible revenue streams through optional subscriptions and merchandise sales and being fucking careful about when you schedule because that can make the difference between breaking even and getting financially crushed, yeah, you can make this work, though the vast majority of them are still passion projects that are losing money all over the place. | ||
Plansix
United States60190 Posts
On March 09 2014 13:09 TotalBiscuit wrote: In the case of DOTA it's even more important because of the huge travel costs associated with flying 5 people per team around minimum. DOTA2 started off right though, Valve built tools into the game to increase sponsor ROI and for teams to monetise and make some money by selling tickets and custom items/couriers. Their crowdfunding model for TI4 is savvy, they are innovating on all fronts and of course they have the benefit of just being a more popular game. SC2 popped up just a little too early, I feel if it had come later it would have been able to learn a lot of lessons from the successes of LoL and DOTA2. We started off as the biggest eSport and then we got overtaken but wanted to try and maintain the same kind of size. We can't, we have to focus on sustainability. We are fortunate that Blizzard is bankrolling WCS in that regard but other events either have to diversify the games they cover (which is why ESL covers League and DOTA, because thats where the money is) or rebuild a sustainable model from the ground up. Clan Wars is an example of that. Clan Wars is running in the black. Barely, but it's making a small profit for MLG and we planned it to work out that way. I don't honestly see much of a future for SC2 only offline events outside of WCS or smaller venue stuff like Red Bull Training Grounds, at least in the long-term right now. I always felt that offline events were to expensive unless they are coupled with some other large event, like a Pax or something else. It just to much money to be dropping. Look at the Monster Dota event. Its being run at South by Soutwest, which is perfect for events like that. Everyone wants the GSL, but forgets that Korea is a very small country and all the players live within driving distance of the event. Dota 2 didn't try that and just said "fuck it, everything is online, because its how we pay the bills." | ||
WombaT
Northern Ireland24321 Posts
While people refusing to pay for events and content is an issue, you're being over the top as to quite how much of the community are against that, unless you know the numbers which will give you an advantage over me in that regard. While I feel some elements of our community are appallingly stingy, this community also funded flights for the likes of MKP to attend foreign tournaments and do speak with their wallets (for the good) on occasion. MLGs Arena problem was a decline in production standards, lack of studio atmosphere and really just being a big departure for the classic MLG weekend marathon tournament with all the atmosphere and hype it entailed, spoken as somebody who paid for the first two. They were introducing great features like first-person sidestreams that I would happily pay a lot for a whole weekend event, but sadly such innovations haven't caught on. An oft not-touched about issue is the sheer expense of funding Korean flights to the events that they now dominate as well. I love to see them, but I don't see how it makes for a sustainable future if such overheads exist and the burden is on the broadcaster with WCS. This may be wrong, but from what I have read here and elsewhere the broadcaster has to pay out for those flights right? | ||
TRaFFiC
Canada1448 Posts
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jmbthirteen
United States10734 Posts
On March 09 2014 13:17 Wombat_NI wrote: Well yes TB, but the (albeit unexpanded) point about the NA scene's issues being a bit more deep-rooted is one worth checking out. On healthy competition, I'm not an insider, and indeed from what I've heard the NASL (or indeed other orgs) running WCS don't make money from those. The issue with the WCS system was that organisations such as the NASL were really restricted over what they could do to compete, and that was at the behest of the owner of the IP. While people refusing to pay for events and content is an issue, you're being over the top as to quite how much of the community are against that, unless you know the numbers which will give you an advantage over me in that regard. While I feel some elements of our community are appallingly stingy, this community also funded flights for the likes of MKP to attend foreign tournaments and do speak with their wallets (for the good) on occasion. MLGs Arena problem was a decline in production standards, lack of studio atmosphere and really just being a big departure for the classic MLG weekend marathon tournament with all the atmosphere and hype it entailed, spoken as somebody who paid for the first two. They were introducing great features like first-person sidestreams that I would happily pay a lot for a whole weekend event, but sadly such innovations haven't caught on. An oft not-touched about issue is the sheer expense of funding Korean flights to the events that they now dominate as well. I love to see them, but I don't see how it makes for a sustainable future if such overheads exist and the burden is on the broadcaster with WCS. This may be wrong, but from what I have read here and elsewhere the broadcaster has to pay out for those flights right? MLG Arenas did not have a decline in production standards. The arena's had fantastic production. MLG was pumping out a 1080p stream for those, while their big events were 720p. The down time was minimal. They had FPOV for every player in every game. Pretty sure they were running instant replay as well. They had a fantastic multi stream viewer as well. The production for the arenas was some of the best stuff SC2 had seen at that point. | ||
Danglars
United States12133 Posts
You want chairs? They had chairs. I have never in any other event been able to stand astride that red carpet and slap the hand of my progamer idols on the way to matches that would go down in history. Those thundersticks that misspelled Aiur lol. Who can beat a 20 minute one on one conversation with (then) Anna Prosser? NASL it is sad to see you go, but thank you to everyone behind it for the fun-filled adventure. I couldn't imagine a better entry into my local LAN Esports than GHOSTCLAW & shindigs broadcasting NASL live games for all of us (UCI eSports hype) | ||
darthfoley
United States8001 Posts
The NASL began with Jinro against IdrA. Both have retired from the game. The world into which the NASL was born has always seemed like another era. Even more so now. Beautifully summarized. | ||
TotalBiscuit
United Kingdom5437 Posts
On March 09 2014 13:17 Wombat_NI wrote: Well yes TB, but the (albeit unexpanded) point about the NA scene's issues being a bit more deep-rooted is one worth checking out. On healthy competition, I'm not an insider, and indeed from what I've heard the NASL (or indeed other orgs) running WCS don't make money from those. The issue with the WCS system was that organisations such as the NASL were really restricted over what they could do to compete, and that was at the behest of the owner of the IP. While people refusing to pay for events and content is an issue, you're being over the top as to quite how much of the community are against that, unless you know the numbers which will give you an advantage over me in that regard. While I feel some elements of our community are appallingly stingy, this community also funded flights for the likes of MKP to attend foreign tournaments and do speak with their wallets (for the good) on occasion. MLGs Arena problem was a decline in production standards, lack of studio atmosphere and really just being a big departure for the classic MLG weekend marathon tournament with all the atmosphere and hype it entailed, spoken as somebody who paid for the first two. They were introducing great features like first-person sidestreams that I would happily pay a lot for a whole weekend event, but sadly such innovations haven't caught on. An oft not-touched about issue is the sheer expense of funding Korean flights to the events that they now dominate as well. I love to see them, but I don't see how it makes for a sustainable future if such overheads exist and the burden is on the broadcaster with WCS. This may be wrong, but from what I have read here and elsewhere the broadcaster has to pay out for those flights right? Well honestly I don't see how you could run WCS without having a profitable wing doing other games. It's obvious WCS does not provide enough funding to sustain your entire company. ESL is doing well because it's also doing League and DOTA, they also happen to have the lions share of the viewerbase for weekly SC2 content and the prime-time slot which makes them pretty much untouchable. GOM has been kept afloat with Blizzard money for god knows how long and has of course also been diversifying into other games such as World of Tanks, though for the longest time they had enough community good will behind them (plus you had no fucking choice really) to sell premium subscriptions at a hefty pricetag. Recently that has dropped off significantly due to service problems on their end and a lack of incentive to purchase due to WCS offering a lot more stuff for free anyway. Numbers wise I have a few figures. Adblocking stand at anywhere between 40-50% on average and the problem is compounded by an inability to properly serve ads to a myriad of different regional demographics, leaving the US and UK as the best possible ad demographics, but the EU as a whole being the largest viewerbase for SC2. Twitch and Youtube CPM is all over the place, fill-rate is difficult to keep up to a high standard so even if you do have good CPM you get shafted in the eCPM stakes because maybe only 1 in 3 views is actually being monetised. Outside of that there's nothing I could publicly share about the operating costs of one of the larger organisations. I'd like to point out that the community efforts to fund MKPs flight etc were years ago. I was around at that time and I do remember the excellent works of the community. I remember the SCReddit Invitational, funding flights, funding tournaments, all sorts of things, but that was a different time and that does not happen anymore. There is plenty of blame to go around, not least of which has to fall upon those people that resorted to crowdfunding and basically poisoned the well by producing a poor quality product. Sons of Starcraft is the obvious soft target there but even earlier efforts like Liquid Rising failed to produce real results. That said some blame must lie on the community, the witchhunt surrounding Pizza.gg was ridiculous, the ROOT house even more so, particularly when people accused ROOT of not producing the content they had promised when in reality they had and people just hadn't paid attention. The willingness of the community to shell out monetarily is at an all-time low and who can blame them? They're sullen, wistful for past glories and looking at a seemingly dim future. Then we have a small but very loud portion of that community that is fucking cancerous and preaches doom and gloom constantly while attacking the people who try and hold the scene up. Did you see that recent Reddit thread about Take accusing him of using pirated Windows software? I hoped that thread was just joking around and a few of the posts were but there were actual highly upvoted posts lambasting Take, slamming him for asking people not to use Adblock and then apparently using "pirated" software (of course there was no actual proof of that). Fucking cancerous witchhunters that are still loud and proud in our community. Those kind of people would have been crushed by popular opinion in the past but not these days, not in 2014. Oh no, the community crucifies its betters on a regular basis and trust me, anyone still in this scene and still contributing is doing out of raw fucking passion because god knows anything less than a burning love for this game would have any sane person saying "fuck this, these people are awful, why am I wasting my time here?". Reddit is the worst culprit due to a lack of moderation but it's present on TL too, it just gets hit with the banhammer a lot more frequently. That doesn't make the attitude go away, it just keeps it out of the public eye. Anyway sorry about that, I wanted to get it off my chest. The scene is sick, it needs some serious chemo. My plan in 2014 is to go all-in on Starcraft with as many cool events as possible because that is the only thing at this point that will help. You cannot fight these people on forums and expect to win. Thankfully it works. Clan Wars gets a lot of positive attention on Reddit, the more cool stuff that happens in the scene, the less time people have to dwell on the negative. We gotta keep doing that. Onto your other points. I think MLG Arenas were a viable format that got shot down way before their time and that was the communities fault for the most part. People just couldn't accept that no, they couldn't have everything for free. The model was solid, appeal to hardcore fans with top quality players, focus entirely on the games. Production values at those events were SIIICKKK, there was very little at the time that could compete. Solid camera work, well lit studios, 1080p streams, great audio, you name it. The only thing lacking was a crowd (and please, do not mistake atmosphere for production values, they are not the same thing). Those innovations like player streams were all aimed at the hardcore fan. I doubt it could work anymore, we have too much high quality SC2 for free, but back then getting that many top quality Koreans together outside of GSL just didn't happen that often, so there was interest. You're right, flights cost quite a bit. Minimum it costs Axiom $1,000 per player per season for WCS and that's just for flights. Depending on the time of year that can rise to $1,500 and that doesn't cover other costs such as food and taxi fares. Europe is generally worse, depends where the event is. That said, depending on the size of your arena event, you can make it work. Let's say you go 8 man round robin like one of the arenas did. $1k per flight, 3 days hotel, maybe 4 per person, you can probably get them to at least go 2 to a room, factor in taxi fares, catering, lets say $1.5k per player if you budget well. That's probably the lions share of your costs, though then you have to pay lets say, 3-4 camera operators, 2-4 casters, maybe a host if you're feeling fancy, 5-6 production crew, 12 hours a day for 2 days. If you kept your casting in-house for the most part and brought maybe 2 high profiles in to boost the ratings... you could keep that from spiralling out of control cost-wise, particularly if a lot of your guys are already salaried anyway and would be paid regardless. Then you have to think well, how many tickets do I need to sell to break even? Can I sell an additional sponsorship like a Dr Pepper Early access pregame show? Can I get anything additional out of my existing sponsors for this event or is it just including in what they give me every month? Honestly? Those arena formats are probably some of the most sustainable you'll find outside of online only events. The travel costs are obviously high but it's not outside the realms of possibility to break even on those. I'd actually love for Adam to come in and tell us how much an arena cost to run. Honestly I can only guess, knowing how much those staff get paid, casters get paid and how much it costs to get a player from one side of the globe to the other and back, but seriously, we need to be looking at more stuff like that, more ways to directly monetise a product because the traditional ad monetisation ain't working anymore and even when it was it was never enough to begin with. | ||
iloveav
Poland1478 Posts
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NovemberstOrm
Canada16217 Posts
On March 09 2014 13:42 TotalBiscuit wrote: Well honestly I don't see how you could run WCS without having a profitable wing doing other games. It's obvious WCS does not provide enough funding to sustain your entire company. ESL is doing well because it's also doing League and DOTA, they also happen to have the lions share of the viewerbase for weekly SC2 content and the prime-time slot which makes them pretty much untouchable. GOM has been kept afloat with Blizzard money for god knows how long and has of course also been diversifying into other games such as World of Tanks, though for the longest time they had enough community good will behind them (plus you had no fucking choice really) to sell premium subscriptions at a hefty pricetag. Recently that has dropped off significantly due to service problems on their end and a lack of incentive to purchase due to WCS offering a lot more stuff for free anyway. Numbers wise I have a few figures. Adblocking stand at anywhere between 40-50% on average and the problem is compounded by an inability to properly serve ads to a myriad of different regional demographics, leaving the US and UK as the best possible ad demographics, but the EU as a whole being the largest viewerbase for SC2. Twitch and Youtube CPM is all over the place, fill-rate is difficult to keep up to a high standard so even if you do have good CPM you get shafted in the eCPM stakes because maybe only 1 in 3 views is actually being monetised. Outside of that there's nothing I could publicly share about the operating costs of one of the larger organisations. I'd like to point out that the community efforts to fund MKPs flight etc were years ago. I was around at that time and I do remember the excellent works of the community. I remember the SCReddit Invitational, funding flights, funding tournaments, all sorts of things, but that was a different time and that does not happen anymore. There is plenty of blame to go around, not least of which has to fall upon those people that resorted to crowdfunding and basically poisoned the well by producing a poor quality product. Sons of Starcraft is the obvious soft target there but even earlier efforts like Liquid Rising failed to produce real results. That said some blame must lie on the community, the witchhunt surrounding Pizza.gg was ridiculous, the ROOT house even more so, particularly when people accused ROOT of not producing the content they had promised when in reality they had and people just hadn't paid attention. The willingness of the community to shell out monetarily is at an all-time low and who can blame them? They're sullen, wistful for past glories and looking at a seemingly dim future. Then we have a small but very loud portion of that community that is fucking cancerous and preaches doom and gloom constantly while attacking the people who try and hold the scene up. Did you see that recent Reddit thread about Take accusing him of using pirated Windows software? I hoped that thread was just joking around and a few of the posts were but there were actual highly upvoted posts lambasting Take, slamming him for asking people not to use Adblock and then apparently using "pirated" software (of course there was no actual proof of that). Fucking cancerous witchhunters that are still loud and proud in our community. Those kind of people would have been crushed by popular opinion in the past but not these days, not in 2014. Oh no, the community crucifies its betters on a regular basis and trust me, anyone still in this scene and still contributing is doing out of raw fucking passion because god knows anything less than a burning love for this game would have any sane person saying "fuck this, these people are awful, why am I wasting my time here?". Reddit is the worst culprit due to a lack of moderation but it's present on TL too, it just gets hit with the banhammer a lot more frequently. That doesn't make the attitude go away, it just keeps it out of the public eye. Anyway sorry about that, I wanted to get it off my chest. The scene is sick, it needs some serious chemo. My plan in 2014 is to go all-in on Starcraft with as many cool events as possible because that is the only thing at this point that will help. You cannot fight these people on forums and expect to win. Onto your other points. I think MLG Arenas were a viable format that got shot down way before their time and that was the communities fault for the most part. People just couldn't accept that no, they couldn't have everything for free. The model was solid, appeal to hardcore fans with top quality players, focus entirely on the games. Production values at those events were SIIICKKK, there was very little at the time that could compete. Solid camera work, well lit studios, 1080p streams, great audio, you name it. The only thing lacking was a crowd (and please, do not mistake atmosphere for production values, they are not the same thing). Those innovations like player streams were all aimed at the hardcore fan. I doubt it could work anymore, we have too much high quality SC2 for free, but back then getting that many top quality Koreans together outside of GSL just didn't happen that often, so there was interest. You're right, flights cost quite a bit. Minimum it costs Axiom $1,000 per player per season for WCS and that's just for flights. Depending on the time of year that can rise to $1,500 and that doesn't cover other costs such as food and taxi fares. Europe is generally worse, depends where the event is. That said, depending on the size of your arena event, you can make it work. Let's say you go 8 man round robin like one of the arenas did. $1k per flight, 3 days hotel, maybe 4 per person, you can probably get them to at least go 2 to a room, factor in taxi fares, catering, lets say $1.5k per player if you budget well. That's probably the lions share of your costs, though then you have to pay lets say, 3-4 camera operators, 2-4 casters, maybe a host if you're feeling fancy, 5-6 production crew, 12 hours a day for 2 days. If you kept your casting in-house for the most part and brought maybe 2 high profiles in to boost the ratings... you could keep that from spiralling out of control cost-wise, particularly if a lot of your guys are already salaried anyway and would be paid regardless. Then you have to think well, how many tickets do I need to sell to break even? Can I sell an additional sponsorship like a Dr Pepper Early access pregame show? Can I get anything additional out of my existing sponsors for this event or is it just including in what they give me every month? Honestly? Those arena formats are probably some of the most sustainable you'll find outside of online only events. The travel costs are obviously high but it's not outside the realms of possibility to break even on those. I'd actually love for Adam to come in and tell us how much an arena cost to run. Honestly I can only guess, knowing how much those staff get paid, casters get paid and how much it costs to get a player from one side of the globe to the other and back, but seriously, we need to be looking at more stuff like that, more ways to directly monetise a product because the traditional ad monetisation ain't working anymore and even when it was it was never enough to begin with. What a fantastic post. I felt the same way on many of your points, I've never knew how to display them but you just did perfectly. | ||
TotalBiscuit
United Kingdom5437 Posts
On March 09 2014 13:51 iloveav wrote: Unfortunatelly the games popularity has decresed to the extent that some organizations leave the scene since the bussiness plan is no longer valid. It was never valid. When did these organisations ever get the required numbers to make it valid for weekly content? Oh yeah, fuckin never that's when. WCS numbers are HIGHER than NASL numbers were, than IPL numbers were. Do you remember what those numbers were like back then? 5k, 10k at best. WCS is regularly pulling in 40k concurrents for EU RO32, higher in the offline portions. NA is more like 15k but that's still better than what NASL Season 1-3 were getting. Even Proleague numbers are up, thanks I'd imagine in no small part to a change in commentary team. Proleague was regularly getting 5k concurrents last year, now it's closer to 15k-20k. We don't know what GOM used to get, but the numbers for this regular weekly content are actually really good compared to what the old regular weekly content used to get back in 2010-2012. And it's still not enough. It never will be, not for SC2 alone. For that stuff to work you need to be supporting other games too, you need a SC2 division not a pure SC2 focus. That's the sad reality right now but thing is, it's always been the reality, we are just in a time when that is more obvious to the average viewer. | ||
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