Did you know, a recent survey has exposed that more than 40% of the population plays video games which is nearly 3.1 billion people globally? However, can you imagine, by playing these video games, one can earn significantly and make money by playing tournaments and matches? With the ESports industry developing enormously at a substantial level over several years, it has exploded many athletes in the permanent competitive market.
Besides, with the maturity of the ESports industry, it is estimated that the number of local events, leagues, and media would increase up to the revenue per fan of $600 million by 2022. And this competitive market has impaired the requirements of regular training and supervision of top skills.
Particularly, there are five fundamental means of income through which professional gamers earn. These ways include Sponsorships, Live-Streaming, Money Prizes, and Video-On-Demand Content.
Sponsorships are a practical and high-paying means of income for both professional gamers and streamers. Since ESports gamers have become gradually visible to a wide range of population and have started a fascinating substantial number of the fan base and several companies. These sponsors include some brands like beverage brands, such as Red Bull, Mountain Dew, Monster Energy Drinks, and various other companies which provide players with these conspicuous products. However, in return, gamers promote their products via live streaming or social media and endorse them in the form of commercials.
Nevertheless, amongst different companies which offer sponsorships to these players and organizations, the marginal companies include food, beverage, computer, and internet companies which propose a deeper association and link with the utilization of video games. These sponsor companies are generally presented as locally widespread worldwide and expect returns from their investments.
Although with the prompt flood of investment into the ESports industry from diverse brands, companies, organizations, and other investors, many expert gamers have seen the worth of these linked sponsorships and by endorsing their products, they have earned through video games.
Streaming is probably the most prevalent way for a gamer to make money in a non-competitive manner. Thus, streaming has grown to real-life activities such as watching movies online, live cooking, chatting and so on, this is what is called live streaming. Anyhow, the viable ESports has also adopted live streaming to make an increment in their incomes.
However, the top of the line streaming platform is Twitch which is an American video game live streaming, launched 10 years ago in 2011 and has become the world’s leading live streaming platform. Though Twitch holds probably 72% of total live streaming and 20% is held by YouTube.
Since streamers develop their audience by obtaining more subscribers so that it becomes progressively ostensible how much population is dependent upon these subscriptions and earn. However, it has been estimated that one subscriber can earn approximately $5,000 per month and there are almost 2,000 streamers in a row. Not only this, if we estimate the earning of some popular streamer, it would be $14,000 each month which has a huge number of subscribers and their monthly earnings go even higher.
This is the oldest and simplest way of earning by an expert gamer in which the player wins real-world prizes by playing tournaments. However, by playing such video game matches, the winner gets a portion of their won tournament prize. Yet, this type is quite similar to that of physical games, but it is different because the player has to play online through a video game, but earn real money. Though money prizes have been present in the gaming industry since the early 80s and have been seen as a rapidly growing means in the viable gaming industry.
In money prizes, most tournaments need the contestants to travel physically to the venue and play the game on the battleground. However, this type is different because, the player does not need to travel and spend on anything such as travelling expenditures, entry fee, meals, and lodging etc. the player can play the game by staying at home and only needs a decent connection of internet and other playing equipment like consoles and PlayStation etc. nevertheless, many ESports players began playing such tournaments that provide learning opportunities as well as security and get numerous prizes in the form of money.
Video on Demand
Posting videos on-demand on YouTube is another means for professional players to earn and monetize their content which they have created, specifically on video games. These pro players make videos while playing the on-demand game and through expert editors, they alternate a seven to eight-hour video in ten to twenty minutes and post it on YouTube. These types of videos provide the audiences with an opportunity to watch the unique content in order to learn a game or enhance their skills in a particular game, that’s how these pro players get their fans.
YouTube also offers these players an amount of donation and takes consent to run ads on their platform in the form of ad monetization. Since YouTube is a platform owned by Google, so it corporates with numerous brands which permit and allows them to sell their products directly through their platform. As a result, the VOD players on YouTube get income from the platform and in return, they allow them to monetize different ads during their videos.
3 Ways to Invest in Video Games and Earn
In 1995, only 100 million people played video games but today there are more than 3 billion people who play video games. The video game market is a $152B global industry that has developed at 11% CAGR over the last seven years. However, according to an investigation, video games have become a large part of people’s lives and an average player spends half an hour playing video games each day.
If you hold a set budget and want to earn by investing in video games, you can make a huge investment and make a great amount of money.
Investing in Video Games Studios
Investing in video game studios holds an exceptional amount of risk but it has increasingly become a competitive landscape of $100M+ bets by the largest game studios.
Investing in Professional ESports Teams
E-Sports professional teams are presently overestimated with lined business models that do not demand the premium valuations they are receiving today. These expert teams have been dealing with 14x revenue multiples while the traditional sports teams earn only at 5x revenue. However, the investors see the evolution of ESports and are paying for that expected growth today in these evaluations.
Investing in Technology Companies
This is an operative, risky, yet money-making technique to get experienced to this space is through the technology companies that are giving the demand for the video gaming & E-Sports industry and make money
However, we believe that investing in video game studios is an overcrowded platform and high risk because you cannot predict every time which video game would be on-demand next month. On the other hand, making an investment in ESports pro teams is not a really fast-growing means of income. Thus, this trend is gradually getting mature in the competitive market. Hence, the best way to make money is to invest in infrastructure technology companies and earn through video games on demand.