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E-sports tournament revenue - the consumers

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Azzur
Profile Blog Joined July 2010
Australia6267 Posts
February 15 2012 05:17 GMT
#1
With all the fuss today about MLG and it's PPV model, there is much discussion and opinions. The 2 most vocal camps seem to be "I don't want to pay to watch SC2, and PPV is not going to work" contrasted with "You're killing e-sports if you don't support them!".

I don't care about either camp because they have no power. The people arguing about how a PPV model is going to fail are the same ones not forking out a single dollar. As much as you think you are special, tournament organisers/advertisers don't care about you too since you're not spending anything and will almost certainly not spend anything that is advertised either. The other "You're killing e-sports if you don't support them!" is so small that you don't actually make a big difference - and it seems that you are the ones that get shafted (e.g. MLG gold passes bait-and-switch!).

The ones that make a difference (and usually the majority is more silent) are the paying consumers. Consumers evaluate each tournament and organisation on it's worth and are putting their money where their mouth is. These are the ones that advertisers are interested in because if you have money to spend on SC2 tournaments, then you most likely will have money to spend on their products. Organisers/advertisers are certainly very interested to know the numbers - how many pay and what are the demographics of those who do.

Thus, these majority consumers will certainly make their voices heard with their wallets. Even though I'm speaking for myself, I'm certain that I speak for the majority of these silent consumers - MLG's decision to charge $20 for a 3-day event is too much. Like I've posted in a many threads, they would likely make more revenue if they charged $10 for the volume can make up for it. Also, the negativeness resulting from the high cost is definitely not going to help them. As a comparison, I bought GSL Premium ($100) and GSTL Light ($55) because I felt it was worth it. If you compare the GSL Light ($70 for 5 GSLs = $14 per event for the best tournament in the world) with the $20 MLG it's a no-contest really.

As a paying customer, the opinions of my fellow paying customers are important to me because they are also helping support the tournaments I enjoy watching. Likewise, I'm sure organisers/advertisers will pay careful attention. Thus, my prediction is that MLG is going to have to drop their price for Arena or the next event.

Lastly, I feel that PPV or freemium in-conjunction with ads is going to be the way of the future. Gaming has moved away from the teenage kids towards higher age groups (20's, 30's and beyond). We are the group of people who will make the decisions as a collective because we are going to vote with our wallets. I think it's naive to think that advertisers will magically support e-sports when the perception is that it is kids that are watching - when you provide them with solid numbers of PPV/subscribers they will then be interested as well. People opposing PPV without providing any alternative are not aware of the realities of the world and think that money for these tournaments will magically fall into place.
Primadog
Profile Blog Joined April 2010
United States4411 Posts
February 15 2012 05:26 GMT
#2
There're no strict lines between the three classes you outlined. Everyone have their price. The massive numbers of people that attend Barcraft cumulatively, the VOD count on GSL, and the hours players clock coaching are demonstration that the fanbase have money, and they're willing to spend it for the right product. Even those with a strict no-money-on-esports, still are consumers. Ads and sponsorship have value, precisely because even if these people don't hand money directly, their expenditure still gets influenced by the exposure.

If MLG didn't sell enough PPV next weekend, it's because they tried to sell a bad product and marketed it improperly. Those that make it a case against the fans are missing the point.
Thank God and gunrun.
Bagration
Profile Blog Joined October 2011
United States18282 Posts
February 15 2012 05:30 GMT
#3
There is a problem of time zones since we are a very spread out community. I have not and will probably never buy a GSL pass because GSL broadcasts during the middle of night for me (USA EST), and it is just impractical for me to stay up and watch.

I am someone who does not place too much importance on stream quality unless it is 240p or something atrocious, so I do not buy premium for HD streams because to me personally there is not too much marginal benefit from them.

Part of the problem with Western tournaments is that tournaments have found that it is hard to keep the community interested in an on-going tournament that spans several weeks, so they have 2-4 day tournaments. Some, like MLG or IPL, charge a premium for access to special streams or behind the scenes or whatnot. The problem is, I would buy those passes for the extra streams, but there is already so much going on at once. MLG has its quadview, but it is really hard to follow 4 simulataneous games (or even 3 or 2 for that matter) as you miss things and become less invested in the games themselves. IPL had the some issue at IPL 3. I really wanted to see the stream of the venue tour with Megumi, as well as the player lounge (Strelok, Stephano, Ret, and others just chilling and having a great time), but there were also multiple games being broadcasted at the same time, that I just could not keep up.

I think there needs to be more season-long premium passes that can include the PPV, rather than simple PPV only. Just my thoughts
Team Slayers, Axiom-Acer and Vile forever
aristarchus
Profile Blog Joined September 2010
United States652 Posts
February 15 2012 05:43 GMT
#4
I agree that it's too high, but advertisers do care about the people who would refuse to pay. They still spend money on something sometime. The vast majority of tv shows are not so loved by their viewers that those viewers would pay money just for that show alone, and yet advertisers still like to advertise on them.
shaftofpleasure
Profile Blog Joined December 2011
Korea (North)1375 Posts
Last Edited: 2012-02-15 05:51:23
February 15 2012 05:50 GMT
#5
On February 15 2012 14:17 Azzur wrote:
With all the fuss today about MLG and it's PPV model, there is much discussion and opinions. The 2 most vocal camps seem to be "I don't want to pay to watch SC2, and PPV is not going to work" contrasted with "You're killing e-sports if you don't support them!".

I don't care about either camp because they have no power.
...


What? They [consumers] have the power. They are the power. They are the reason why organizers are going PPV in the first place. If the majority of the consumer base are against it, that only means your business model will fail.

Good Luck with your Western 'E-Sports'.

+ Show Spoiler +
Charging people for stream when the scene is still in it's diapers. Really?
It's either the holes of my nose are getting smaller or my fingers are getting bigger. /// Always Rooting for the Underdog. Hyuk/Sin/Jaehoon/Juni/Hyvva/Hoejja/Canata //// Hiding in thread somewhere where BW is still in it's pure form here on TL.
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