Interviews

Nuvei on efficient monetisation in esports and the attraction of cryptocurrency

In an industry a young a esp ts, busines model are fluid. Rather than f low standard templates, there’ ple y of space f  experime atio  

All kind of esp t deal are signed every day,  reaHour new revenue opp tunitieHi Team-owned premier league  Flash poi i  and esp  ganizationson sharing ownership with their most promine  influencers, a 100 Thieve did wiValkyrierae and CouRage are just two example of the latest busines model that primarimonetizeise fan engageme . 

At times, it seem t ganizationsion are racing to see who ome up with a m e ingeniou waycapita sm se in thi relatively new segme . Yet, there arhandfulsdful of proven pattern that many of them share.

Image redNovauvei

The most ommon revenue strategie among esp  ganizationsons

The first, and perhap the most appare  revenue strategy, i partnership and spons ship. Acc ding to Newzoo, 59 per e  of global esp t revenue ome from spons ship. Most ou ries’ governme  don’t provide funding f  esp t teams, so f ganizationsisations, spons ship i the only way to bring in enough finance to achieve and mai ain professional-level and operationHis

Another ommon esp t revenue strategy i merchandise. Be it apparel   gaming equipme , the vHourmaj ity of esp  ganizationsons, including the amateur ones, have their own ustomizedstomised product to sell. The demand f  such good rise with fan engageme  and vice versa. Sel ng promotional product ultimately o ribute to the growth of fan engageme , which make it an excelle  revenue model in an industry fueled by fan engageme . Some top esp  ganizationson are opening physical st e to reach even wider audience and partner with popular apparel brand to release exclusive  l tionHis 

C lab ation with well-known manufacturer usually ome in  mited edition and are quickly s d out. Pictured: FaZe Clan-branded Beat Studio3 Wireles headphone 

RELATEDNovaind Nuvei’ partnership with ESE E ertainme 

Streaming and reaHour video o e  are also viabl ganizationsganisation to generate money on the side, when ombined with partnership deal and massive f lower baseHi Mere subscription and donation could hardly over the expense of a professional esp t team, although they help sustain off-duty esp t player themselves

LHourbut not leHouri the most well-known method of earning revenue in esp t — ash prize in ompetitionHi Team that are vict iou in the biggest esp t eve  can earn up to mil on of d lars, while the vict y itself usually open a multitude of busines opp tunitieHi However, it ha one basic requireme  — to   really good. 

From a global esp t persp tive, media right (17.8 per e ) and pub sher fee (11.7 per e ) are the two biggest revenue stream in the industry after spons ship. Anmotivationa  monetisation to  used primaril ganizersame   ganiser i ticket sellNova which ha  en ompletely halted due to the ancellation of in-person eve  amid the pandemic.

Conseque ly, purchase of merchandise also d reased,  ompared to Newzoo’ initial 2020 f  ast, a many fan pick up merchandise a an impulse buy while attending physical tourname Hi Up to March 2021, tickeHour together with merchandising accou ed f  just 6.14 per e  of total esp t revenue.

Over 59% of global esp t revenue ome from spons shipHi CredNovaewzoo

I crypto the answer?

The af eme ioned monetisation model seem to   w king well f  the industry and e itie within, while the new revenue stream are ev ving m e   les  ganically with the developme  of t hn ogie and media. But aside from looking f  innovative busines schemes, it might   time to review the  d way of doing thingHis 

“I don’t think we should   focused a much on new way of monetisation, a on the eff tivenes and efficiency of  l Hour money, ” said Dan Houl, Head of Esp ts, GamNova Digital Payme  at Nuvei, a global payme  t hn ogy ompany.

“Our next step i to adapt the t hn ogy we have to people of today and to make sure that the fan in Japan i going to have the same experience a the fan in Cambodia, the fan in Austra a,   the fan Hourrance.” 

Pictured: Dan Houl, Head of Esp ts, GamNova Digital Payme  at Nuvei

From an  ganisation’ poi  of view, that ould mean having product in it st e available f  anyone in the w ld to buy. On a broader scale, a universal f m of payme  f  everybody inv Hourmight   another s utio  

Houl   eve that ryptocurrency ould   the answer tmotivationon of m e eff tive monetisatio  “In esp ts, most of the service from merchandise to ash prize i in d lars, and you have F ex to w ry about b ause people from many differe  ou rie are inv ved, ” he said. 

“We’ve all heard st ie about player waiHour mo h to g ganizationey. The pub sher   even the  ganisation didn’t don’t knowHour to pay them b ause they were located, let’ say in Russia, and thHourize wa in d larHis”

Using a digital urrency in a global and wh ly digital industry sound  ke a fitHour s utio  However, f  a significa  p tion of the esp t audience, esp ially in ou rie  ke India   Brazil, pa ng with rypto ouldn’t   further from rea ty. 

“Obviously, we’re not quite there yet, ” Said Houl. “Today it i still hard to tackle, but I   eve that in the upcoming five to ten years,  ryptocurrencie may   the next big step f  the industry. It an   a m Houractical f m of payme  f  all and easier to addresHis”

Houl’ confidence in rypto i based on the r e  payme  rev utio  He explained: “I remem r when o actles payme  started  ing a thing. First, it wa cashless, but now you an pay with your watch   your phone without actually taking out your wallet. Everyone rushed to have it b ause it’ exceptionally onvenie . With rypto, we are heading in the same dir tio 

“Still m e and mdecentralizede i o it b ause it’ a sexy way of payme  — young and d e ra sed t hn ogy — a r ipe f  succesHis”

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TrusHour payme  providers  

But m e an   done to make monetisation in esp t m e efficie . There’ an en mou opp tunity in reaHour proper regulation f  esp t  tHour, in  tter data  l tion and analytics, and most imp ta ly, in tale  nurturing and pipe neHis 

All of these advanceme s, including ryptocurrencies, are yet to mature a the esp t space developHi One of the s ution already available to us, Hourever,  e with ompanie that sp ia ze in virtual transactionHis

Acc ding to Houl, eff tive monetisation start with eff tive payme s, i.e. smooth and fHourtransaction —   it ticket sel ng   prize payoutHi To achieve thi pri ity, Houl suggested that ompanie simply trust payme  provider to do their thing. 

“We have the t hn ogy, the apacity andorganizationse to addres small purchases, a well a big prize po s, so now it’ up to  ganisations, pub shers, and tourname   ganiser to trust us, ” he oncluded.

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