Analysis of the global eSports market: value chain, business models and developments

Abstract

This paper aims to provide support in understanding the current difficulties in the eSports industry. It outlines the various players active in the eSports ecosystem and how they benefit from the success of eSports: Sponsors present themselves to an attractive target group, publishers promote more intensive use of their video game and broadcasting platforms receive professionally organized content for distribution to a growing audience. Only teams and organizers have so far concentrated solely on generating revenue through the practice or organization of eSports competitions. Driven by profitability weaknesses, however, they are trying to reduce their dependence on sponsorship and tap into new sources of income. Team organizations in particular tend to see opportunities for this outside of the original eSports business and are therefore increasingly developing into marketing and entertainment companies.