Why TV and digital media companies are pursuing esports IPs?

Nodwin Gaming and Star Sports have unveiled the return of the BGMI Masters Series, while Krafton India has partnered with JioCinema for live-streaming the Battlegrounds Mobile India Series (BGIS). Just like established sports events such as IPL, both TV and digital media companies are actively seeking esports IPs, benefiting the sector as a whole. With the esports market in India projected to hit $107.8 million in 2023, broadcasting and streaming are turning significant contributors, generating enthusiasm among brands.

Brands like Lenskart, TVS, Lenovo, Intel, Philips and others are joining in the esports frenzy.

According to experts, the biggest reason behind mainstreaming of esports is that now it is making its way to a much broader and diverse audience, including those who have previously never been exposed to it. Why are platforms looking at these properties? The answer is manifold.

While announcing its association with Krafton, JioCinema said esports has evolved beyond its niche origins and emerged as a mainstream experience, with a consistent surge in popularity and such collaborations help the platform deliver diverse and engaging content to the viewers.

The demographics of these viewers is a key reason. “Since the gaming community comprises a significant portion of the younger population, marketers targeting the youth demographics can connect and engage directly with their target audience through esports. Esports tournaments serve for endemic brands to showcase their gaming hardware, peripherals and software within the gaming community,” said Lokesh Suji, Director, Esports Federation of India and Vice President of Asian Esports Federation (AESF).

Bigger scale

According to Suji, with esports making its debut as an official medal sport at this year’s Asian Games while also being confirmed for the 2026 edition of the tournament, video gaming is only going to gain more credibility by being part of these major multi-sport tournaments.

Shradha Agarwal, Co-Founder & CEO, Grapes, said there were always options to watch esports, what has changed is the scale of it.

Online streaming of esports saw a definite spike after COVID-19 but broadcasting of esports dates back to 2017 in India. Earlier, UTV started UCypher, an esports league airing on MTV with Counter-Strike: GO and DOTA 2. Following that, Discovery Communications brought its own channel DSPORTS which broadcast esports and tournaments.

“The viewership at that time was limited to a very small audience segment. There were limited teams, especially the Indian contingent. Recently, platforms like YouTube and Facebook saw the emergence of video game streaming, when a large audience started interacting with gaming content. Also, games like PUBG and Fortnite, with their ease of compatibility and interactive features, made gaming easier for everyone,” she said.

Eventually, it gave a pedestal to esports tournaments as well, and now they have collaborators to broadcast them on television again making them accessible to people and viewers, she said.

Television boost

Experts said esports consumption is now a popular trend with a growing audience that seeks effortless discovery and access to engaging gaming content on various screens, including TV.

“Some of the biggest TV channels are now broadcasting top esports IPs, while digital streaming has improved through the integration of apps like Rooter across connected TVs. Together, they serve millions of households in the country. Brands now see esports as a valuable way to connect with passionate viewers. In the ongoing BGMI Master series, non-endemic brands like Lenskart, TVS and Phillips have joined on smart TV streams and TV, respectively,” said Piyush Kumar, founder and CEO, Rooter.

While digital streaming platforms like Rooter and Loco have always streamed gameplays and tournaments, involvement of mainstream media in televising or streaming boosts the reach, recall and engagement of these events to a whole new level.

As per EY estimates, the esports industry revenue is expected to reach Rs 1,100 crore by FY25 and tournament revenues, streaming media revenues and prize pool are key revenue streams.

The same report also says that streaming platforms will generate the largest chunk of esport revenues. As esports grows popular amongst youth and the affluent, advertisers and agencies are expected to increasingly use esports tournament viewership to gain reach and engagement with the audience, growing over 4x to Rs 650 crore by FY25. Infect, eventually, the industry could explore subscription revenue models. Tournament sponsorship and syndication revenue would likely quadruple to more than Rs 350 crore growing at a CAGR of 45 percent.

“Media broadcasting rights and advertisement sponsorship revenue together constitute this segment,” the report highlighted.

This is what experts are calling the beginning of an innovative era for gaming in India. The role of the audience is of primary importance. They not just add to the reach and boost numbers but are the main reason why brands like to get involved.

“The mix of TV and streaming platforms creates a diverse and dynamic audience—from the dedicated gaming community to those venturing into this dynamic realm for the first time. It also opens up exciting avenues for various brands to advertise,” said Animesh Agarwal, founder and CEO at 8Bit Creatives, a creator agency specialising in gaming, and esports organisation S8UL.

Brands are collaborating with esports at various levels. Agarwal’s organisation recently concluded the S8UL Gaming Festival 2023 and the brand participation in it is a clear indication of their interest in the domain. Popular brands like Lenovo and Intel were an integral part of the festival.

Brands however are not always endemic, sometimes brands that are in no way related to gaming collaborate with players in the space to resonate with a tech-savvy and engaged demographic.

What brands gain other than reach?

“The gaming audience in the country is much younger, and we need to deploy various ways of reaching out to them – by participating in community and culture-first events to enable a direct conversation with our consumers. ROI (return on investment) is in two parts, the direct ROI is in showcasing and engaging with the fans at the event we are a part of, and the indirect ROI is the digital engagement and content we are able to drive for us,” said Chandrika Jain, Director - Marketing, Lenovo India.

Shradha Agarwal highlights a few examples of how brands can use the space. “The fashion world, for instance, can present its best designs, using the players as the brand ambassadors. Food and beverage brands can bring their customised products by teaming up, as we have seen in the international market. The automobile industry can leverage the opportunity, collaborating with gamers or distributors to market their products within the game. Also, there are more typical ad formats like TVCs, in-stream ads, skippable ads, short-form videos, and even influencer collaborations,” Agarwal said.