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The audiovisual exploitation of esports is becoming a significant source of revenue for the esports industry through the monetization of audiences and broadcast content. A crucial factor in esports, the existence of an audience watching video game competitions requires industry players to develop methods for broadcasting esports events, facilitated by modern technology.
Esports activities are now largely funded by sponsors whose involvement is generally limited to overseeing the distribution of content produced for video game competitions or, more generally, for video game-related events in a semi-competitive context: esportainment.
Esports: Content distribution and advertising from partners
Aided by the law of October 7, 2016, for a digital republic, which defined the initial elements of a specific legal framework, esports is becoming a genuine communication tool and, as such, is attracting increasing interest from professionals, particularly advertisers. In September 2017, the Orange Opéra store offered numerous activities related to the entire world of video games, while the C8 channel joined L’Equipe, beIN, and SFR Sport in broadcasting esports on French channels.
The Canal+ Group, for its part, launched the second season of “Canal Esport Club,” dedicated to major esports and gaming events.
Numerous companies have sprung up around esports competitions, offering a wide range of services: professional player clubs, organizers of sporting events and tournaments, match commentators, competition data analysts, platforms dedicated to managing esports teams, and even bars offering video game consoles. Advertising agencies are also preparing major brands to invest in esports.
Esports and advertising: promotional contracts at the heart of monetization
In the past, brands seem to have underestimated the scale of the esports phenomenon. Often lumped together with traditional sports fans, casual/amateur gamers and esports enthusiasts constitute a consumer group that is frequently young and highly sought after by sports advertisers who are gradually learning the codes of this new audience.
The variety of esports video games, the tastes and preferences of their respective audiences, and the wide range of brand placement opportunities make these events a significant opportunity.
Considered by some as a new advertising bubble, esports offers unparalleled profitability compared to any other type of sporting competition. Player and team sponsorships, event sponsorships, tournament organization, product placement, media buying, and other forms of advertising generate new opportunities, as demonstrated by Coca-Cola’s recent campaign featuring a fictional video game character, Alex Hunter from the FIFA 18 universe.
Video game publishers, the owners of the operating licenses, are the new key players in reaching this new audience and are essential partners for promoting any product.
Esports and video games: A legal framework that still needs clarification
The growth of advertising through this new medium raises numerous legal questions that remain unresolved despite the initial efforts proposed by the Law for a Digital Republic.
For example, television broadcasts are still subject to the provisions of the Léotard Law of September 30, 1986, particularly regarding the broadcasting of advertising on television. The advertisements shown, including sponsor logos, competition organizers’ logos, and the names of consoles and video games, risk being classified as disguised advertising.
While some hope for a system similar to that of sports broadcasts, a point supported by the parliamentary report on the development of esports, the legislature’s refusal to grant video game competitions esports status does not appear to be working in their favor.
The High Council for Audiovisual Media (CSA), the competent authority in this matter, will have to rule on the issue as soon as possible.
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