Why are eSPORTS the new MASS SPORT? – VisualPolitik EN

Here’s a question… Has anyone heard of FAKER? Do you know any SK TELEKOM fans? Those over 30 won’t have the slightest idea
of what I’m talking about… I’m talking about one of the famous players
of League of Legends. League of Legends, also known as LOL due to its initials, is one of the most successful video games in the World. You head that right. Many may think that video games are simply a domestic entertainment. We buy the game, we play at home, alone or with our friends and that’s it, right? Well, my dear friends of VISUALPOLITIK, nothing could be further from the truth. Blizzard will open its first U.S. esports
stadium in Los Angeles next month You heard that right. Nowadays, video games have become a mass sport,
almost on the same level as football or formula Formula 1 To give you an idea, only in 2017, esports,
that is, electronic sports, moved more than 1.5 billion dollars through sponsorships,
merchandising and investments. Yes, that’s still little in comparison to
the 8 billion dollars that Formula 1 moves, for example, but it isn’t bad if we consider that this new mass
sport isn’t 10 years old. To give you an idea, the first League of Legends
world championship was held in 2011 and had an audience of about 200,000 spectators. 7 years later, in 2016, more than 14 million
people from around the world saw the final match. These figures are a little lower than the
ones we could find in an NBA final, without going much further. In fact, League of Legends broadcasts even
have their own commentators in various languages. And where do you think esports are the most
popular? Of course! In Asia. Countries like China or South Korea account
for more than 60% of the video games audience. Unlike Formula 1, which never really took
hold in this part of the world, esports have really stuck. And logically, this has led to an uproar in
the investors’ world. Intel, HP Announce ‘Record’ Investment In
Esports Industry However, the internet and new technologies
have always been the perfect breeding ground for generating financial bubbles that explode
in a rather big way. We’ve all heard about the dot-com crisis at
the beginning of the 21st century, or the downturn companies like Snapchat took. So the question is… Are we really talking about a new sport? Or is this just another bubble? Can a mass sport be created from nothing,
just by investing money? We’ll answer these questions today, but
first, a bit of history. WHO INVENTED FORMULA 1? In 2015, a group of investors called LIBERTY
MEDIA bought Formula 1. You may be wondering: How could someone buy
a sport as such? Well, the truth is that Formula 1, in addition
to being a sports competition, is also a company. See, car racing is as old as cars themselves. After the Second World War, with the car’s
democratization, a massive public emerged who loved seeing the fastest cars in the world. And car manufacturers were happy to participate
in these races. Competitions gave them the perfect excuse
to test their latest engines. To give you an idea, a Formula 1 car can cost
millions of dollars, even if it’s not intended for the consumer market. However, the technology it uses ends up being
implemented in utilitarian cars. For example, disc brakes (Steel Disc Brakes)
or Active suspension were innovations born in Formula 1. Throughout these years, the only entity in
charge of regulating and dictating the competition rules was the International Automobile Federation,
also known as the IAF. However, the real business didn’t emerge
until the 70s, when this guy on the screen came up: BERNIE ECCLESTONE, the Ayatollah
of speed. Ecclestone was the owner of a Formula 1 team. He immediately realized that this sport was
a real money-making machine. But the business was neither in the prizes
nor in the car companies. The real fortune was in selling TV emission
rights around the world. And what do you think Bernie did? Well, he partnered with the other teams, went
to the IAF headquarters and told them “either you give us the emission rights so that we
can manage them or we stop running and you’re out of races”. And that’s how what we now know as the FORMULA
1 GROUP was born, that is, the sport that became a company that is even listed on the
New York Stock Exchange. In other words, on the one hand we have the
IAF, which is in charge of organizing the races and creating the regulations so that everyone competes
on equal terms. But the one who really moves the money is
FORMULA 1 GROUP And we’re not talking about a few bucks! Just in 2011, they made a profit of over 1.5
billion dollars. To give you an idea, a building like the BURJ
KALIFA in Dubai could be built with that kind of money. And as you can imagine, both organizations
aim to kill each other, and it’s quite normal for them to have all kinds of legal conflicts. You may now be wondering, how does Formula
1 make money? Well pay attention because this will help
us analyze esports better. Most of the money comes from emission rights
and from the payments municipalities and different governments make to host any of the races
in their cities. Only these two account for 60% of the income. The rest is made with company sponsorships,
that is, advertising, and merchandise sales. In other words, the answer is Yes: a company
can create a mass sport and make millions form it. Now the question is, can esports replicate
this business model? Let’s see! FROM PIXELS TO LEGENDS Just like car racing, video game competitions
are as old as video games themselves. The first major tournament was held in 1972,
at the Stanford University. More than 10,000 people gathered to see the
best Spacewar players. Spacewar was one of this old videogames with big pixels and 8 bits music. In those years, video games hardly had multiplayer
systems and Internet connections barely existed. In other words, it was very hard to organize
any competition that was worth seeing. So, just as interest in Formula 1 came about
when most people started having cars, interest in esports came when most people started having
high-speed Internet connections. And can you guess the first country in which
competitions were held? Exactly, South Korea! In 2006, South Korea was the country with
the fastest Internet on the planet. And half of the population had broadband connections. In other words, this was the perfect breeding
ground for the first big HALO or Starcraft players to emerge. And how did they become famous? Well, through streaming platforms such as
YouTube or, above all, TWITCH.TV. And that’s how the esports fever broke out
in South Korea. Seoul’s getting a new dedicated eSports
stadium come March 2016 You may now be wondering… Who would be the Bernie Ecclestone of esports? And the answer is RIOT GAMES. This is the company that created the most
successful game of all time, LEAGUE of LEGENDS, which was released in 2009. We’re talking about a video game that seems
to have been made for competitions. Check this out. To that date, online games were… How to say it? A bit rudimentary. Of course, there were titles like WOW, which
had fantastic graphics and a great story. But these were role-playing games, in which
one can play for hours and neither win nor lose. Also, you have to pay a monthly fee to play,
and not everyone can afford that. However, League of Legends is free, has graphics
and an unbeatable game mode and games last for about an hour, and have a winning and
a loser team. In a very short time, this video game gained
millions of players around the world. And since they were connected by the Internet,
the teams that were created were completely international. For example, one of the best-known groups,
known as ORIGIN, has Spanish, French and Finnish players. The truth is that by the year 2011, they had
a critical mass of users. And to celebrate it, they went to a festival
of the industry that was being held in Sweden. They had an audience and a place to celebrate
the championship. Allowing their players to share their screens
on YouTube or TWITCH was enough to offer a show on an international scale. And, as we always say in VisualPolitik, so
it was said and done. Season One Championship Reaches 900,000 Viewers One thing was clear: there was an audience
that wanted to watch matches from their favorite game on their computer screens. From the initial 900,000 spectators, we have
now surpassed more than 14 million spectators. And the players, who are now professionals,
travel around different tournaments with high competition athlete visas. This means that, from the institutional point
of view, League of Legends is now considered a rightful sport. And the same goes for other games such as
Call of Duty or DOTA. And where there’s an audience, there are
also companies willing to pay for publicity. Don’t forget we’re talking about video
games, a perfect environment to sell computers, graphic cards, screens or even high-speed
Internet connections. In other words, every technology company has
recently decided to sponsor esports events. And… as you can imagine, that’s where
the gains come from, as there are also huge investors willing to invest. Zacks Investment Research highlights three
esports stocks to watch It’s clear, esports are a business that is growing by leaps and
bounds. But how far can it go? Could we be talking about the new formula
1? Well… if you remember, we mentioned that
most of Formula 1’s income comes from the rights sold to TV networks. But, for now, esports are broadcasted openly,
through free streaming platforms. Therefore, there doesn’t seem to be a big
business there. On the other hand, no governments or municipalities
are willing to pay to host a tournament. In other words, Formula 1 has a diversified
business, with different income streams, which means that, even in times of crisis, the company
continues to make an income. However, at the moment it looks like the bulk
of esports’ income depends on their sponsors. And sponsor-based businesses are, by definition,
unstable. If not, listen to the media itself. But, above all, the biggest problem with this
type of sports is variety. There’s only one Formula 1. There’s only one football. But there are lots of esports, and we don’t
know which ones will last and which ones won’t. League of Legends has achieved an undeniable
success, but it was created in 2009. Will it still be fashionable in 10 years? Or will a new electronic sport emerge, and
come with its developer company, to pick up the baton? Make no mistake: esports are here to stay. The question is, which one is worth investing
in the long run? Of course, these are all reasonable doubts
for any new industry. And under no circumstances do we want to underestimate
this phenomenon. But, as we always say in VISUALPOLITIK, not
everything is as it seems, and the devil is in the details. And having said that, I leave you with this
question… Would you invest in an esports company right
now? Do you think we’re facing a new mass sport
that will generate billions of dollars? Leave your answer in the comments. And if you want to know more about another
emerging economic industry, in this case, that of electric cars, we’ll tell you all
about the battle between TESLA and BMW in this other video.

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100 thoughts on “Why are eSPORTS the new MASS SPORT? – VisualPolitik EN

  1. Î'm sorry to say this, but as a long time league player, a half year retired from all league person and a former LCS and general League of Legends Esports fan i am baffled why you picked Origen as an example for an international team. Neither their player's nationalities are that special for an EULCS team, nor is this a relevant team. There are teams that have players from four or more countries, which is more than Origen, that are competing in the EULCS, which doesn't star Origen anymore as they weren't good enough and there also are teams whose players are from Korea that are competing in EULCS, which posts a way higher distance than Origen's players. I don't even follow the eSport of LoL anymore (maybe I'll start again now) but i still know this is a bad example as it doesn't represent it's homeregion accurately as it's not even close to the top contenders and it's also not even close to the most international team.
    Let's consider G2 for a moment. They have, which i could find out in about 20 seconds of research, a support from Korea, a jungler from Poland, a midlaner from somewhere in the slawic nations other than Poland and a top and adc from some Scandinavian nations. At least four nationalities represented, the second team in EULCS, thus at least seven places better than Origen who aren't even in the EULCS. Way better example in any way possible.

  2. This is by far the most biased video of yours I've watched so far. Such focus on LoL and no mentions of DotA from which LoL became, and which had online tournaments for years. Nor Starcraft, like seriously…

  3. I would definitely invest in it. But as far as LOL it may if planned a seed, but it is definitely not gonna be around when and if eSports becomes something like NFL. I believe as VR and AR become more advanced and available, we will see a birth of eSports Stadiums and such. I feel like it will be a few more years if not a good decade before this comes to forwishen.

  4. tl;dr: E-sports are better (for viewers) than regular sports precisely BECAUSE they're less standardized. Now read on if you're nodding your head in disagreement…

    I'd say e-sports are superior to a lot of…non-e-sports?…for viewers mainly by virtue of the nature of the games themselves. Particularly the example he uses in this vid – motorsport. A lot of modern sports have had the variation virtually stripped away entirely from them in order to make them as 'competitive' as possible i.e. perfectly fair, by way of being exactly identical (ex: there's a lot of restrictions on what F1 teams can do to modify/improve their cars). In a sense, they've been purified/distilled down to a single set of standard procedures. That's great for the players, but NOT for the viewers. The less creativity and yes, even uncertainty, there is in a game, the less interesting it is to watch, imo. Ever wonder why the fantasy races we see in most Hollywood movies are so much less standardized (ex: the Star Wars pod racers are all different machines, the many 'death race' films also feature huge variation in the types of vehicles used, etc.)? Well, this is why – it's a lot more 'naturally/easily' entertaining, especially given the lack of commentary and all the other 'excitement injection' mechanisms of actual sports (they're also, of course, a lot less fair as a result). Many video games, however, are still somewhat less affected by this process, albeit they too are steadily undergoing it. For instance, there was a time when strategy games (such as Age of Empires) used randomized map layouts. However, now the norm in strategy games (such as Starcraft, which once was big in e-sports) is to play on fixed/static perfectly mirrored maps. Still, the typical e-sport game (such as League of Legends in this vid) still has TONS more variation and diversity in the gameplay than almost any real life sport. This allows the audience to disect the gameplay and tactics of the players while they watch it. The exact opposite of this is something like motorsport, which has just a handful of pit stop strategies, or even the ultimate pure sport – the 100m dash (or any simple race). A lot of these sports work mainly because of copious injections of excitement from the competitiveness of the tournament itself (which is WHY we love nail-biters so much), because the intellectual exercise of imagining yourself in that situation and trying to figure out what you would do is largely pointless, since there's only a handful of strategies available to anyone to begin with. Add to this the fact that there's a comparitively larger variety of genres, games and game modes played in e-sports and I'm of the opinion that it makes for a far more enjoyable watch (and inb4 anyone says they just wish to turn their brains off when they watch sports – fyi, getting excited isn't exactly relaxing, while not being excited means you're hardly getting much out of it and so may as well not bother).

  5. Hey, StarCraft is still around after 20 years so we'll see. I do wish on StarCraft Remastered, they did more than just upgrade the graphics and add a ladder system. The flawed controls and the retarded AI from 20 years ago still exist in this new one. Remastered? My ass! It's just StarCraft HD. I'd rather play StarCraft 2 instead with it's more fluent controls and the much smarter AI.

  6. As long as "E-sports" is a wet dream for teenage boys to make a living playing ONE game, which cant hold people forever, then yes, it is very much so a bubble that will burst.
    In Denmark, various education institutions have actually set up "E-Sports" classes, with "teachers" that played CS 1.5-1.6 over a decade ago, on a frankly average level. Bubble? Oh yes. I wish it weren't.

  7. I am sick of seeing all the Luege of Legends adds and all the people pressuring me to play it. Screw off majority, I love my empire simulators. I am incompatible with E-sports games, I need my detailed population, development, and nation leadership mechanics. I can't do these Arena games.

  8. Because it's not really a sport, just competition video games. Gaming companies and the so-called "professional gamers"(not necessarily "nerds") like calling it "sport" in order to glamorize it and make it sound like real "skill" or "profession" to compensate their "special mentality", also easier to make more money from the mass.
    I've played video game for all my life, but I never ever consider it as "sport" for a single minute, because it's simply not sport. You won't become a real boxer just because you can play Street Fighter on PS4.

  9. I'm an Irish guy studying in China, and you will always see Chinese, Thai, Koreans etc playing mobile games etc. Asia really is big for this kind of stuff.

  10. Formula 1 is ruined as a business model, and it's been done by their own hand.

    The old model of Formula 1 being the coolest and fastest cars around is undermined by the state-enforced move to inline 4 cylinder turbo engines, and this is only going to become more significant with the move to electric cars. Is F1 going to go electric? There is already Formula E. Soon enough there will be no such manufacturer R&D taking place, only for irrelevant old internal combustion engines.

    If they're not going to get this sort of R&D money anymore then they may as well stop pussying down the engines and commit to being big, loud and powerful. Commit to developing the V10 or V12 technology and preserving it for future generations. It's not like there aren't further innovations to be made in IC engines, and people would love to see it as the spectacle is impressive.

    If they're thinking of going to electric powertrains they'll ruin Formula E. I quite like Formula E, so I'd appreciate it if they did their own thing.

    Eventually Formula 1 is going to get ZERO manufacturer support, and they'll have to rely on advertising and transmission rights alone. At that point they may as well give up on the downsizing.

  11. 120,000 people gathered live in a stadium to watch a 2005 StarCraft championship — over 40K more than attended the Super Bowl that year. League of legends came out in 2009. I'm a huge fan of yours, but wow, lets totally ignore the spark that set off eSports.

  12. Yes, I am. With the advancement of the VR Technology in the future E-Sports possibilities is endless. E-Sport is not just one Kind of Sports like Football, Soccer, F1, MotoGP but different kind of thing that possible or maybe possible thing to do in the future in the Virtual Space or Electronic Space like Computers and Others. WoW can become an e-sport if they make it like Boxing where people battle against each other in a ring with their abilities but if you add VR into it then their character movement can be affected by the condition of the player it self, I will let you guys imagine more.

  13. And the Starcraft tournaments? They've been around the longest and became popular (in Asia) before twitch.
    Innovation, Special, Hero, Nerchio, Gummiho, Raynor and Scarlet those are a few of the starts.

  14. Enjoying the YouTube content associated advertisements being a spot off. In depth and objective as usual; fantastic work; please keep it up

  15. what about quake 3 and counter strike??? This video wrongly gives the impression esports didn't start until 2006 and to add insult to injury LoL started esports /smh :S

    Quake 3 Prize money:
    Release Date: 1999
    Prize Money Awarded: $1,137,832.19 From 100 Tournaments
    Recorded Date Range: 1999-09-09 to 2009-11-22

    Counter-Strike (1.6)

    Release Date: 2000
    Prize Money Awarded: $10,929,079.01 From 588 Tournaments
    Recorded Date Range: 2000-12-09 to 2014-08-02

  16. Visual Politik… You missed out one very important aspect about this industry.
    THE BOOK MAKER. One of the reason the egame has become so popular is because it allow gamble, especially Asian country. Bookie around the world has allow e sport to place betting on their odds. The gambling industry on it is huge.
    A huge doubt over its results, mainly on fixed results as most of their players are easy to control youngster. Hope visual Politik can cover these topic sometime in future…

  17. Esports will always be relevant. It's very inclusive and the variety means it will always evolve with the times. The audience are also naturally connected.

  18. eSports are the new big sporting event which will be way cooler than football or cricket type of sports. . So yeah there are a huge chance of it getting it's goal.

  19. Your videos are very watchable, but the loud music"headings" and stupid sounding "readouts of those headings" are a big turn off. Can you please make "normal" videos please. Big fan.

  20. Brains not brawns. Looking at black and/or burly flesh chunked men is so primitive and disgusting.

  21. Piss off with LoL, Rocket league is a better eSport. The rules are simple enough for a layman to understand, but the moves are complicated enough to be difficult. Also, rocket league is much more flashy. Also, unlike LoL, no memorization and skill cycling a bot could do, all mechanical skill.

  22. Well, most of the time when I play a certain sport, I always want to see the pros perform against each other and same goes to games. If you look at the number of gamers , you'll see the probability of success

  23. Well, most of the time when I play a certain sport, I always want to see the pros perform against each other and same goes to games. If you look at the number of gamers , you'll see the probability of success

  24. This comment is not about this video…..but can I ask you to make an explanatory video about the recent trade deal between Mexico and the European Union…….What do u think that's all about?….r/ LH

  25. u talk about LOL for almost whole video…and yet…only logo picture for Dota2….. really man??? in term viewers and prize pool…Dota2 beat them all in Esports…

  26. a possible subject to make a video, is television dead in its traditional form? im 37 and i never watch anything anymore on tele, everything via my laptop

  27. Chess also proffited from the Internet age. Now you can watch the most prestigious tournaments (even the world championship match) on your screen. The viewers are not so many as in videogames but speed chess, or blitz games (with very small time controls like 5 minutes or 3 minutes + 2 seconds increment by move) are taking place on the Internet. FIDE (the entity ruler of chess) has already staged world chess championships of speed chess. And there are sponsors! To watch some tournaments one has to pay to watch online. The top players are millionaires and the prizes have gone bigger and bigger.

  28. It's obvious you didn't do much research. Dota 2 is much bigger then league. Dota2 final had more viewed then the Super Bowl last year.

  29. Also majority of Esports titles get there profit from the game itself. Esports get more players into the game.

  30. Now eSports platforms are taking advantage of blockchain technology. One such project is Ausra World where they are using the NEO blockchain to provide a truly decentralized eSports platform where even the betting/gaming rules can be decided by community members. I believe that itself is a key fact way Asura World would become a leader in the eSports industry!

  31. How much Riot Pay'd you, Steam is way biger, Dota2 Counter strike, and the tournament prizes for steam created games are larger then Riot

  32. Thete is wrong information about South Korea Esports. South Korea started to broadcast Esports in 1998 and they didn't use youtube or Twitch TV.

    There was TV channel called Ongamenet(Now OGN) and MBC game(doesn't exist anymore because of some politic issues..) in early 00's, and there were really big starcraft league called OSL and MSL.

    Therefore, young Koreans can watch progamer's game very easily, and progamers became big celebrity all over the Korea. (Like slayerboxer, yellow, moon, JD, Flash, Bisu, and now Faker)

    So, Esports is already quite serious Sports in South Korea, and Korean started to think these games(starcraft1 and LOL) as a sports at least 15years ago. For instance, there was big esports gambling scandal with Savior in 2008?9? I remember. It shows Esports is already big thing in Korea.

  33. Then isn’t twitch the formula 1 of this industry? And the different games … that come and go just like the race teams. …. Basically…. twitch can start to generate profit on selling exclusive accounts without adds or with better comentators and move to a business model similar to that of netflix

  34. Actually Riot's information says that the audience of the last World Championship was around 80 milion unique viewers. The big factor was that it took place in China, where the biggest player base is, so the time zones were perfect for them.

  35. Internet speed is just part of reason why e sports started in south korea Does this guy even know that south Korea have dedicated TV channels just for E Sports???

  36. I remember getting those lol discs in packages. I think they came packages with another game I bought. I remember thinking no game I got for free could possibly be worth playing. boy was I wrong…

  37. E-sports will be The next Big sport but lol is done for, they have scared away The fan base they had, there are still alot of lol fans but it is not The one they had 3-4 years ago. I was a Big lol fan but they have reworked The game to death and I know im not The only one thinking that. Sc2 is still a thing and will be for a Long time

  38. No worries on game changes counter strike has been around since 1999 and large international competition has been going strong since 2002.

    As a matter of fact most of the team organizations you see today started in counter strike

  39. you know how you follow a youtube guy and you think to yourself "wow..this guy really know his stuff", until he talks about a subject you are familiar to, completly blew it and now you question everything this guys told you…..yeah…that s me right now

  40. I guess mentioning 25 millions USD prize pool for just one tournament is worthless information… DOTA2 is the be all end all of ESports. Without Dota that simplified game LOL will not exist.

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