Edward Chang: The Missed Opportunity for Publishers and Platforms

The Missed Opportunity for Publishers and Platforms

Ed ChangEIR, The Chernin Group

@ed_chang

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Esports vs. Traditional Sports

Organizational Model

Description Traditional Sports Esports Titles

Decentralized • Independently organized competitions• Sanctioned and governed by an

administrative body• Open to any qualifying athlete

Standard Leagues

• Set number of recurring teams and players

• Exclusively managed by league front office that is collectively owned by each team

Heavily Centralized

• Administrates all professional and competitive play worldwide

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Esports vs. Traditional Sports

The difference?

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How Did We Get Here?

“It’s a significant investment that we’re not making money from. It’s an investment into the game, for our fans, just like we’d invest in any other feature within the game. It’s a worthwhile thing for us to do because it’s such a high quality, engaging experience for our fans.”

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How Did We Get Here?

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How Did We Get Here?

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How Did We Get Here?

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How Did We Get Here?

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How Did We Get Here?

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How Did We Get Here?

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How Did We Get Here?

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How Did We Get Here?

Open APIs

Control over media rights

Monetization avenues

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Case Studies: Tech

$80MM fund for supporting new integrations

AppExchange generates 2.8x revenue of Salesforce

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Case Studies: Valve

• Steam Workshop: 125,000 CS:GO items, 50,000 DOTA2 items• Ecosystem succeses: FaceIt ($15mm series A), ESEA (acquired by

ESL), Kickback (YC W15)• Robust competitive circuit: Eleague, ESL, FaceIt, top salaries• CS:GO items economy: At one point >$7bb yearly

transactionvolume

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Case Studies: Twitch

Features created or inspired by 3rd party ecosystem:

• Bits, preceded by Streamlabs and StreamTip

• Clips, preceded by Oddshot, Plays.tv and Forge

• Subscriptions / Partner Program and 3rd-party services (Revlo, Gamewisp and Curse/Discord integrations

• TwitchPlays• Chatbots (Moobot, Nightbot and

Xanbot)

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What about you?