Business of Speed<\/p>\n
The Money Behind the Motorsports Industry<\/p>\n
By: Tim Frost<\/p>\n
Date: February 3, 2017<\/p>\n
WILMETTE, Ill. \u2014\u00a0One of the\u00a0hottest entertainment\u00a0trends is eSports.\u00a0This month we will\u00a0take a look at the business\u00a0and how motorsports fits\u00a0into this economic sector.<\/p>\n
The evolution of gaming\u00a0serves as the foundation\u00a0for eSports. This trend\u00a0originally started with\u00a0video games being played\u00a0in a single-location environment\u00a0with friends. The\u00a0movement toward the\u00a0multi-player online battle\u00a0arena created the modern\u00a0eSports industry.<\/p>\n
The community aspects\u00a0of eSports are unique.\u00a0There are players and\u00a0those who like to watch\u00a0them. There are an estimated\u00a0100 million active
\nusers worldwide. Major\u00a0events and competition\u00a0are driving viewership\u00a0consumption similar to\u00a0traditional sports.<\/p>\n
Since eSports is rapidly\u00a0growing, mainstream\u00a0sponsors are taking notice.\u00a0Brands are expected to\u00a0spend more than $500 million\u00a0on marketing through
\neSports with about 60 percent\u00a0on sponsorship and\u00a0the remaining on advertising.\u00a0The viewership numbers\u00a0are one of the most appealing\u00a0aspects as almost four\u00a0times or 400 million people\u00a0worldwide watch them\u00a0compete online. Viewership\u00a0is expected to grow at\u00a0almost 20 percent annually
\nover the next few\u00a0years.<\/p>\n
Major broadcasters are\u00a0broadcasting tournaments\u00a0live. Online streaming via\u00a0Twitch is reaching numbers\u00a0exceeding traditional media outlets and trailing\u00a0only the ESPN networks.\u00a0There are partnerships between\u00a0broadcast and digital\u00a0platforms as they try to\u00a0define their positions in a
\nrapidly changing media\u00a0landscape.\u00a0The appeal for eSports is\u00a0centered on its consumers\u00a0\u2014 an engaged and valuable\u00a0audience. Currently,\u00a0eSports enthusiast per\u00a0capita revenue is behind\u00a0traditional sports. However,\u00a0there is massive upside\u00a0potential and eSports\u00a0viewers are high earners
\nand big spenders.<\/p>\n
The demographics are desirable\u00a0with more than 50\u00a0percent falling in the 21 to\u00a035 age demographic. Those\u00a0that are getting harder to\u00a0reach via traditional advertising\u00a0because they\u00a0spend less time watching\u00a0television, listening to\u00a0radio or reading printed\u00a0media.<\/p>\n
eSports aspects that appeal to this audience include\u00a0cross-screen\u00a0entertainment technology;\u00a0video platforms and communities;\u00a0consumers entertain
\nconsumers; and\u00a0live-chat functionality.<\/p>\n
Historically, motorsports\u00a0has maintained a presence\u00a0at the gaming table.\u00a0Games had players in a\u00a0head-to-head online competition.\u00a0Simulation changed the\u00a0direction, allowing users\u00a0to simulate real environments and advance in\u00a0rankings.<\/p>\n
One key to success has\u00a0been the ability to expand\u00a0beyond the game and\u00a0evolve into a place for reality\u00a0and skill enhancement.<\/p>\n
The recent launch of\u00a0\u201cNASCAR Heat\u201d will focus\u00a0on a tournament-style\u00a0competition during race\u00a0weekends. Contests will be held in haulers, allowing
\nfans of every skill level to\u00a0drive.<\/p>\n
iRacing has been around\u00a0for almost 15 years. Its\u00a0focus was on creating a realistic\u00a0experience with\u00a0precise accuracy, bridging\u00a0the gap between racer and
\ngamer. Enthusiasts and\u00a0drivers are able to compete head to head and have results\u00a0posted via an online\u00a0ranking system. It has\u00a0solid relationships with the top sanctioning bodies\u00a0for open-wheel, stock car\u00a0and sports car racing.\u00a0Leading tracks (paved and\u00a0dirt) are also featured on\u00a0the iRacing platform.<\/p>\n
Several series and manufacturers\u00a0are developing\u00a0their own platforms and\u00a0hosting their own championships.\u00a0These include Formula One, WEC, Formula E, Nissan and\u00a0McLaren. Runoffs between\u00a0eSports players and drivers\u00a0are providing interesting\u00a0results.<\/p>\n
Motorsports is using eSports\u00a0as another way to\u00a0engage with its audience.\u00a0Whether it be for driver\u00a0development or fan outreach,\u00a0it is important to
\nkeep technology at the\u00a0front of the pack.<\/p>\n","protected":false},"excerpt":{"rendered":"
Business of Speed The Money Behind the Motorsports Industry By: Tim Frost Date: February 3, 2017 WILMETTE, Ill. \u2014\u00a0One of the\u00a0hottest entertainment\u00a0trends is eSports.\u00a0This month we will\u00a0take a look at the business\u00a0and how motorsports fits\u00a0into this economic sector. The evolution of gaming\u00a0serves as the foundation\u00a0for eSports. This trend\u00a0originally started with\u00a0video games being played\u00a0in a single-location […]<\/p>\n","protected":false},"author":5,"featured_media":489,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"_links":{"self":[{"href":"http:\/\/businessofspeed.speedwaysonline.com\/index.php?rest_route=\/wp\/v2\/posts\/488"}],"collection":[{"href":"http:\/\/businessofspeed.speedwaysonline.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/businessofspeed.speedwaysonline.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/businessofspeed.speedwaysonline.com\/index.php?rest_route=\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"http:\/\/businessofspeed.speedwaysonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=488"}],"version-history":[{"count":7,"href":"http:\/\/businessofspeed.speedwaysonline.com\/index.php?rest_route=\/wp\/v2\/posts\/488\/revisions"}],"predecessor-version":[{"id":496,"href":"http:\/\/businessofspeed.speedwaysonline.com\/index.php?rest_route=\/wp\/v2\/posts\/488\/revisions\/496"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/businessofspeed.speedwaysonline.com\/index.php?rest_route=\/wp\/v2\/media\/489"}],"wp:attachment":[{"href":"http:\/\/businessofspeed.speedwaysonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=488"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/businessofspeed.speedwaysonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=488"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/businessofspeed.speedwaysonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=488"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}