New Toronto arena to double as ‘global hub for esports’
Global esports and entertainment organisation OverActive Media is set to build a multipurpose 7,000-seater arena in Exhibition Place, Toronto, projected to be complete in 2025.
According to the company, the venue will host 200+ events a year, driven primarily by music and entertainment bookings, while also serving corporate events, award shows and ‘a full slate of esports events increasing over time’.
OverActive Media is the owner of four major global esport franchises, including Toronto’s two professional teams – Toronto Ultra of the Call of Duty League and Toronto Defiant of the Overwatch League.
“We are already in active discussions to attract some of the biggest esport events in the world”
The venue will be home for both teams and the company hopes to establish the Toronto arena as a “global hub for major international esport events”.
The arena, designed by Populous, is just one aspect of the privately financed $500 million project, which includes a theatre-style entertainment venue and hotel complex.
“Today is another important step in the evolution of OverActive Media. We are building a world-leading, 21st-century sports, media and entertainment company and this best-in-class performance venue will be the chosen home for a new generation of fans that think differently about their entertainment choices and experiences,” says Chris Overholt, president and CEO at OverActive.
“It has always been our intention to develop a venue and hosting strategy and to build a facility that could not only serve as an iconic home for our two franchises, but ultimately emerge as a global hub for major international esport events. We are already in active discussions to attract some of the biggest esport events in the world. This venue will redefine Toronto’s event hosting opportunities in every way,” added Overholt.
The arena will be the first new sports or entertainment venue built in Toronto since 2007 when the city opened BMO Field, a 40,000-capacity outdoor stadium at Exhibition Place.
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Virtual K-pop band inaugurate new Shanghai stadium
K/DA, a virtual girl group composed of four League of Legends characters, performed during the opening ceremony for the League of Legends World Championship grand final at the new Pudong Football Stadium in Shanghai on 31 October.
The competition, one of the biggest dates in the esports calendar, was the first event at the 33,765-capacity venue, constructed ahead of the AFC Asian Cup in 2023.
K/DA, created by League of Legends developer Riot Games, performed via augmented reality (AR), appearing on a physical stage in front of a crowd of 6,312 fans, according to tournament operator TJ Sports. The event was watched by an addition 3.8 million people online.
In addition to the virtual performers, the opening ceremony featured a number of real-world artists and dancers, including Chinese pop star Lexie Liu.
K/DA made their debut during a similar AR concert at the 2018 World Championships, which were held in Incheon, South Korea.
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Esports gets in on the drive-in boom
Inspired by the success of drive-in concerts and cinemas, a new company, USA Drive-Ins, is launching the first-ever drive-in esports arenas.
USA Drive-Ins, a division of esports analytics firm Harena Data, has partnered with property company Horizon Group to develop esports arenas in four US cities. The first – in Gettysburg, Pennsylvania – will launch at the Horizon-owned Outlet Shoppes shopping centre this Labor Day weekend (5–7 September), with venues in Louisville, Kentucky, and El Paso and Laredo, both in Texas, set to follow later this year.
The Gettysburg event will feature three-different forms of drive-in gameplay: car play only, in which attendees connect to games via their smart devices without leaving their cars; hybrid car play, where players qualify using their own mobile device or Nintendo Switch console, with those who make the cut then invited up to the (socially distanced) stage to compete head to head; and stage play, a competitive mode, broadcast on the arena’s projector, for the best players, who are entered into a tournament to battle on games such as Super Smash Bros, Fifa, NBA 2K, Mortal Kombat and Street Fighter.
The launch of USA Drive-Ins comes in the wake of the explosion in drive-in shows that followed the shutdown of concert touring in March. The concept originated in Dusseldorf, Germany, with venue operator D.Live, and quickly spread around the world, allowing artists and promoters to put on concerts while traditional music venues are closed.
“Our first trial will mimic the cinemagoing experience but maintain the comfort of gaming in your own space”
“Our first trial will mimic the cinemagoing experience but maintain the comfort of gaming in your own space,” comments Bill Dever, chief strategy officer of Harena Data.
“Along with high-tech concession stands, we’re offering clean bathrooms versus the standard port-a-potties that drive-ins have. They will be disinfected frequently and limited in maximum occupants at one time.”
Like drive-in concerts, the esports events will allow gamers to offer food to their cars by smartphone, choosing from touch-free menus, adds Dever.
According to Futuresource Consulting, the esports, or competitive videogaming, sector, will reach a value of US$1 billion this year. Gaming has been one of the biggest winners of the coronavirus pandemic, with videogame stocks becoming increasingly hot property as locked-down consumers turn en masse to games for their entertainment fix.
IQ revealed that more than three quarters of a billion people – each one of them a potential concertgoer once the live business restarts – play video games regularly.
This article forms part of IQ’s Covid-19 resource centre – a knowledge hub of essential guidance and updating resources for uncertain times.
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Riot Games exec joins virtual concert start-up Wave
Wave, a Scooter-Braun backed virtual concert start-up, has announced that former Riot Games executive Jarred Kennedy is joining the team as chief operating officer.
Kennedy, who most recently served as global head of entertainment businesses and partnerships at Tencent-owned gaming giant Riot Games, will oversee core operations and expand the scale of digital concert experiences at Wave.
The former Riot Games executive will also work on establishing partnerships with artists, investing and innovating in interactivity and expanding the reach of Wave so that more people can experience the musical events.
“The founding team and a lot of the first folks to join Wave are all musicians, they understand the artists that they’re serving and they understand what it means to be fans,” Kennedy tells The Hollywood Reporter.
“They’ve built their company and their culture around that, and so there’s a lot of trust between the creative community and Wave.”
“I believe in where technology is taking these interactive experiences and I also believe in the power of technology to enable really emotional and personal experiences”
Wave, which transforms artists into digital avatars in real-time, casting them onto stages in customised virtual worlds, recently received $30 million in funding from investors including Superfly co-founder Rick Farman, Twitch co-founder Kevin Lin and Justin Bieber manager Braun.
Kennedy says that he can see virtual concerts garnering popularity in a similar way to esports, as “[there is] the potential to create experiences that are both more interactive but also more immersive through virtualisation, [which] I think could be very powerful for what happens and what music performance becomes.
“I believe in where technology is taking these interactive experiences and I also believe in the power of technology to enable really emotional and personal experiences.”
“Wave is growing exponentially thanks to an incredible team of investors, partners and employees committed to our mission,” comments Wave CEO Adam Arrigo.
“Jarred’s wealth of knowledge in the industry, as well as understanding on how to build initiatives that tap into the core of digitally-forward culture, will allow Wave to better serve today’s digital avatar generation and increase our core technology and gaming capabilities.”
Wave concerts are distributed for free on major platforms including Twitch, YouTube, Facebook and Twitter, and have featured artists such as John Legend and Imogen Heap.
Read more about the intersection between live music and gaming here.
Gamers: 750m new live music fans?
Live music professionals who fail to capitalise on the lockdown-era boom in videogaming will miss out on a confirmed audience of more than three quarters of a billion potential fans, new analysis of player numbers for some of the biggest online games reveals.
A total of 758.5 million people – more than live in Europe, and some 2.5 times the population of the US – regularly play one or more of the 20 most popular online multiplayer video games for which there is recent, reliable data on active users, according to IQ analysis.
Gaming is thriving during the Covid-19 crisis, with firms such as Epic Games, the company behind the Fortnite phenomenon, and Tencent, the Chinese publisher of hit multiplayer titles League of Legends and Honor of Kings, seeing sales soaring while consumers worldwide remain stuck at home.
Especially interesting for the concert industry is how successfully the virtual worlds of Fortnite, Minecraft and other online games lend themselves to live performance, as well as the apparent receptiveness of those games’ existing audiences to live music content. For comparison, One World: Together at Home – aka the star-studded, Taylor Swift-headlined virtual Live Aid – was watched by 20.7m people in the US; the figure for Travis Scott’s 20-minute ‘Astronomical’ event in Fortnite Battle Royale (albeit globally) was 27.7m.
Estimates of the number of videogamers worldwide range from 877m to 2.7bn
Before we continue, a note on IQ’s numbers: the 758.5m figure includes only active users. so while EA’s Apex Legends, for example, has been played by at least 70m people on PC, Xbox One and PlayStation 4, the only available data on monthly active users (MAU) shows just shy of 7m playing regularly on console, which is the figure IQ has used. Similarly, Epic Games does not share data on active Fortnite users, so IQ has used the 27.7m who turned out for Travis Scott, even though the real number is far higher.
This, combined with the choice to limit the research to 20 games, means the aforementioned three quarters of a billion is a conservative estimate – with the actual total likely far higher. (Estimates of the number of videogamers worldwide range from around 877m for online gamers only to 2.7bn in total, including those who play single-player titles, casual mobile games and others).
Videogame concerts, it should be noted, are nothing new: Second Life, the forerunner of event-focused video game-cum-virtual hangout Sansar, hosted what was billed as the world’s first virtual gig in 2007, with Duran Duran, Suzanne Vega and, most famously, U2, also performing as virtual avatars during the game’s late-2000s heyday.
However, the ongoing coronavirus pandemic has accelerated the push towards digital forms of ‘live’ entertainment, with Travis Scott’s spectacular (albeit prerecorded) show in Fortnite in April and upcoming Diplo-headlined festival Electric Blockaloo in Minecraft among recent high-profile virtual events capitalising on the influx of new gamers.
A number of other multiplayer titles are nipping at Minecraft’s heels
Mojang Studios’ Minecraft, which launched in 2011, is both the best-selling video game of all time, with 200m copies shipped, and the most popular online game, with 126m monthly active users as of 18 May. It hosted its first music festival in 2016, and has held several more in the years since, including Fire Festival in January 2019 and the recent Block by Blockwest, with Pussy Riot, Idles and Sports Team.
However, Minecraft’s status as top dog of the notoriously fickle online gaming world is by no means secure, with a number of other multiplayer titles – such as tween-friendly create-your-own-game platform Roblox (115m MAU), esports favourite League of Legends (100m MAU) and two Chinese games, Fortnite-style mobile battle royale Free Fire (80m daily users) and blatant Minecraft knock-off Mini World: Block Art (80m MAU) – already nipping at its heels.
To date, none of those games have hosted a large-scale, artist-backed live music experience akin to Travis Scott or Marshmello in Fortnite – and the same is true of Fortnite’s battle-royale arch-rival, PlayerUnknown’s Battlegrounds (PUBG), which has 55m active daily users excluding China according to developer PUBG Corporation.
Other as-yet untapped videogame phenomena include another free-to-play battle royale, Call of Duty: Warzone, which has been played by 60m people since its launch in March; mobile strategy game Teamfight Tactics, spun off from League of Legends by developer Riot Games, which had 33m active users as of September; and first-person shooter Counter-Strike: Global Offensive, another game played as a competitive esport, which recorded over 26m players in April.
“Going forward, there will be more partnerships with the wider entertainment industry”
Given Fortnite’s success, it seems likely the next major in-game musical performance will be in a similar battle royale-type title; DJ Deadmau5, who recently performed in Fortnite’s new combat-free Party Royale mode, is known to be a PUBG player, while Taylor Kurosaki of developer Infinity Ward has suggested live events could be held in Call of Duty: Warzone in future.
What the future has in store for digital live performance – whether consumers will ever flock en masse to concerts in video games or virtual-reality worlds, or if ‘simple’ livestreamed video will suffice – only time will tell. What is certain, however, is that music and other traditional entertainment businesses, keen to claim their slice of the US$160bn global videogame market, will seek increasingly to partner with gaming companies in the years ahead, according to Stefan Hall of the World Economic Forum.
“Going forward, there will be more partnerships with the wider entertainment industry, as media companies seek to take advantage of the momentum gaming has produced,” says Hall, who also highlights recent reports linking Japanese tech giant Sony with efforts to improve the VR content, including concerts, available for its upcoming PlayStation 5 console as proof of the growing power of virtual experiences.
The latest IQ Focus session, The Innovators, will discuss the growth of videogaming, virtual worlds, 3D venues, livestreaming and more. Featuring Sheri Bryant, president of Sansar, alongside other technological innovators, the panel takes place tomorrow (27 May) at 4pm UK time on Facebook and YouTube:
“The next gen is virtual”: Five Vectors on the rise of esports
Five Vectors, a start-up founded by former Universal Music Group and ESL executives, is on a mission to create “the first real baby” of the music and gaming space.
The company, which recently received US$1 million in seed funding from esports investor BitKraft, is aiming to “bridge the gap between the two worlds and create an end-to-end system”, creating and integrating music into games, streams and live esports events.
Esports has burst onto the entertainment scene in force in recent years, with revenues from the competitive gaming sector set to exceed US$1 billion in 2020. Esports events are now filling large-scale venues such as the O2 in London and New York’s Madison Square Garden with a host of new, purpose-built stadia also popping up to house the events.
However, for Five Vectors co-founder Andres Lauer, the role of music in the gaming space “is not being pushed to its limits”.
“All we’ve seen is the promotional angle, but no one is truly looking to understand what best fits the situation”
“All we’ve seen is the promotional angle – of pushing artists out there through gaming events – but no one is truly looking to understand what best fits the situation,” says Lauer, “so neither side is really benefiting.”
Lauer met fellow Five Vectors co-founder Wasae Imran while working on a multi-year partnership deal between Universal and esports giant ESL. Lauer, then head of digital strategy at the music company, dropped out shortly after the deal was signed, teaming up with ESL’s global head of video network, Imran, to work on a different kind of music/esports hybrid.
The Five Vectors team is looking at how music can be integrated into competitive gaming to “truly enhance the experience”. Lauer believes that the emotive and social qualities of music have the power to make physical and digital events much more immersive for players and for fans.
Working with gaming partners, the start-up creates data-driven profiles of the kinds of music that gamers, and those watching them, best respond to, and their research is revealing that the music best suited to esports events is not necessarily what would be expected.
“A lot of times dance music or mainstream pop tracks are used at esports events, but we found that often more instrumental music is preferred”
“A lot of times dance music or mainstream pop tracks are used [at esports events], but we found that often more niche music is preferred, and the arrangement always varies due to the curve of the game,” says Lauer.
Livestreaming also forms a big part of esports viewership, with those watching at home demanding a different kind of experience. EDM, for example, works in an arena but could be difficult in the livestream, states Lauer, so Five Vectors is looking to help create or find the right composition with pieces to fit a range of specific situations.
Once the company has identified the right kinds of music for the gaming space, the plan is to help artists, producers and independent labels find access and new ways of monetisation in the esports space, allowing them to flourish and grow their audience
“We are moving into a virtual age. The new generation identifies with their ‘online selves’ and is leading a more and more virtual lifestyle – this is why esports is so important to us,” says Lauer. “With Five Vectors, we are going to integrate music into this sector in completely new and engaging ways.”
Esports and music hub to open in Stockholm in 2021
Space, a music, videogaming and media company run by leading Swedish record label execs, has announced Space Stockholm, a seven-storey, 7,500m² (80,000sqft) gaming and music hub set to open in the Swedish capital in the first half of 2021.
The complex, to be located in Stockholm’s main square, Sergels Torg, will include recording studios, a co-working space, a gym, a nightclub and around 500 high-end gaming stations – along with an arena that, at a capacity of up to 800 seats, will be the largest permanent esports venue in Europe, according to the company.
Space’s co-founders are Gustav Käll, head of Universal’s esports label, Enter Records, Per Sundin, the former MD of Universal Music Sweden, and Lars Bloomberg, a partner at architecture firm DAP Group. Sundis is now CEO of Pop House Sweden, partly owned by Abba’s Björn Ulvaeus, which has invested an undisclosed amount into the project.
“Gaming, music and content creation are the three biggest pillars in terms of what the youth enjoy”
“In online culture, people are interested in gaming, music and content creation. They are the three biggest pillars in terms of what the youth enjoy,” Käll, who remains head of Enter – a JV between Universal Music and Electronic Sports League (ESL) – tells the Esports Observer. “We want to bring that under one roof.”
“Space Stockholm, with its unique location at the heart of Sweden’s capital, is poised to become a cultural landmark, not only for the city, but for the entire country,” says Anna König Jerlmyr, mayor of Stockholm, in a statement. “It promises a bright future for Sergels Torg by creating a modern, progressive hub for digital culture.”
Esports revenues are on track to exceed $900m this year, as a growing number of sponsors and investors show interest in the competitive gaming sector. Live music companies that have invested in, or partnered with, major esports competitions and teams in recent years include Deutsche Entertainment, AEG, CAA, TEG and Madison Square Garden Company.
Five Vectors receives $1m from esports investor
Five Vectors, a start-up bridging the gap between the music and gaming industries, has raised US$1 million in seed funding, in a round led by esports investment specialist Bitkraft Esports Ventures.
Five Vectors was founded earlier this year by former Universal Music Group executive Andres Lauer and ex-ESL executive Wasae Imran, and is based out of Los Angeles and Berlin.
Combining the two founders’ expertise, the company produces music for esports tournaments, leagues, games and teams, working in partnership with gaming industry publishers and esports organisations.
Five Vectors has created music for esports league Rainbow Six Siege, SK Gaming’s League of Legends team and the Japanese esports projects of creative gaming agency PlayBrain, among others.
Currently, Five Vectors initiatives engage over 4m gamers, with 600,000 monthly active users, and its artists collectively have more than 15m streams on Spotify.
“Music and games are coming together in new ways”
The funding will be used to attract additional music talent and to make music more accessible to game publishers, platforms, teams, leagues and creators across the gaming and esports industries.
“We are extremely proud to welcome the Bitkraft Esports Ventures family as an investor in Five Vectors,” says Lauer, CEO and co-founder of Five Vectors. “We see a powerful overlap between music and gaming and created Five Vectors to fill the gap in the industry by providing customised music solutions for the global gaming audience.
“Music and games are coming together in new ways,” says Bitkraft founder and managing partner, Jens Hilgers. “With our investment in Five Vectors, we are supporting an incredibly ambitious team that has subscribed itself entirely to music experiences and technology in gaming and esports.”
Esports revenues are on track to exceed $900m this year as more and more sponsors and investors show interest in the competitive gaming sector.
Professional esports is taxing
Esports are taking off in Latin America, with the recent creation of national leagues in Chile, Peru, Argentina, Mexico and Colombia. Rapid growth has also seen TV Azteca, a Mexican TV channel, acquire a sports production company with the aim of launching a 24 hour esports channel.
As ever with new technologies, regulation must work hard to keep up with developments. How are tax regimes dealing with the new business models and income streams generated by the boom in esports? We take a look at the tax rules for esports players and industry participants in Colombia, Chile, Mexico and Peru.
Chile has established itself as one of the key LatAm hubs for the industry
The esports community is becoming increasingly important in Chile as the country establishes itself as one of the key LatAm hubs for the industry. Riot Games recently announced that the Latin America North and South Leagues will merge to form the new Latin American League, based in Santiago de Chile, which will also be the host city for the League of Legends Latin America final.
Professional gamers are profiting from new forms of compensation, including gifts, sponsorship and money earned through publicity on YouTube channels. Some have achieved ‘influencer’ status on streaming channels and are attracting attention from companies keen to exploit lucrative marketing opportunities.
The Chilean Tax Administration has taken steps to address the related tax implications. It is focusing its efforts on the digital economy, and has recently launched the Tax Compliance Plan 2019. This centres on tax avoidance business models such as base erosion and profit shifting, with the aim of creating a level playing field for all participants.
Chile’s Tax Administration also announced that income earned by influencers (which includes professional gamers) will be taxed according to general taxation rules (ie a progressive tax rate up to 35%). Failure to comply may lead to an audit and possible monetary fines.
Currently, there is a digital economy tax bill under discussion in the Chilean Congress, but it remains to be seen if this will extend to cover all aspects of the digital economy, including esports.
Colombia’s esports ecosystem is thriving
Colombia’s esports ecosystem is thriving. Last year saw the introduction of the Professional Videogame League’s ‘Golden League’ into Colombia. More and more professional gamers are now looking to Bogotá, which was recently chosen as the headquarters for the Movistar Latin American League of Legends competition, organised by Telefónica and Riot Games.
Despite this, the Sports Leadership and Positioning Organisation in Colombia does not recognise esports as a “sport”. Because most players have an employment contract or some other contractual obligation to provide their services, its players are not treated differently for tax purposes. Unlike in other jurisdictions, the Colombian Tax Authority has yet to issue any regulation differentiating professional gamer income, including sponsorship money, from more conventional earnings.
Taxation rules are the same for players as for any other citizen paying income tax, and if the professional gamer earns additional income through tournament victories, those earnings are subject to prize taxation rules.
There is no fiscal category for esports under existing tax legislation
Mexico’s esports sector has huge potential. Earlier this year, the Mexican Federation of Esports was formally recognised as a sports federation by Mexico’s sports regulator, giving esports official, legal status as a “sport”.
In November 2019, Mexico City will host the first Central America and Caribbean Esports Championship, with the participation of the PanAmerican Esports Confederation and the World Esport Consortium. It will be the first esports tournament in the region to offer sports medals to the winners.
In Mexico, players are typically paid by their teams under a “provision of services contract”, with the players either issuing invoices to their teams or hired as an employee and paid a salary. In both scenarios, players are subject to income tax at the normal rate of 36%, with players responsible for their own tax filings if paid under a services contract.
The age of the player can impact the approach taken. Players under 16 years old face challenges registering with the Mexican Tax Administration, and players aged 16–18 may currently only register under salary schemes.
There is no fiscal category for esports under existing tax legislation. As a result, teams currently prefer services contracts, easing the administrative burden of their tax filings. All stakeholders must match their activities and revenue streams to the most appropriate existing tax code – whether for income derived from marketing, sponsorship or prize money – in order to ensure proper compliance.
Esports is still not considered to be a sport in Peru
The 2017 creation of the Peruvian Association of Electronic Sports and Videogames (APDEV), which promotes the professionalisation of esports, was a significant step for Peru’s esports sector. Companies such as Claro and Riot Games have launched esports tournaments, allowing different brands to be directly involved in the Peruvian esports ecosystem. Nevertheless, esports is still not considered to be a sport in Peru.
Currently, gamers are mostly hired under provision of services agreements for esports competitions. Their income generally consists of payments for their services as professional gamers, prizes divided between all team members, or payment of their travel and accommodation expenses. Players may also receive income as streaming casters, influencers or through event appearance fees.
As players are not currently subject to specific tax regulations, their services do not have a specific tax category. Payments and prizes earned through their participation in competitions may therefore qualify as independent personal services income with a withholding tax rate of 8%. Tax collected may be considered by the taxpayers as part of their annual work income tax, which is subject to progressive rates from 8% to 30%.
In 2017, the Peruvian Tax Court issued a decision which categorised income obtained through sale of advertising space on a blogger’s website as third category income, with a withholding rate of 29.5%. If a professional gamer wants to sell advertising space as the owner of a website, any income obtained from that source (e.g. sponsorship, influencers) may be similarly considered as third category income, but there have been no test cases as yet.
With the popularity of esports growing at a significant pace in Latin America, legislators face the difficult task of ensuring that regulations are suitable for such an important and lucrative market. Stakeholders can expect to see the authorities working together with key esports organisations to make the new rules appropriate for all.
The nine authors of this article are lawyers at CMS Latin America, and include Cecilia Del Pilar Kahn and Cesar Davila, associates at CMS Grau in Peru, and Diego Rodríguez, partner at CMS Carey & Allende. It originally appeared on the CMS website.
“We’re unifying two communities”: LiveXLive to bring esports to festivals
US festival video platform LiveXLive has announced a multi-year partnership with China’s Allied Esports, which owns a network of esports venues and content production facilities, in a deal the pair say provides “a unique opportunity for new revenue streams by connecting the $9 billion live music industry with the $100-plus billion esports and gaming industries”.
The collaboration will see Allied’s fleet of mobile esports venues, dubbed Esports Trucks, used to create create original “live esports experiences” and other gaming-related content at music events and festivals throughout the world.
That content includes LiveZone, a travelling studio broadcasting a mix of music news, commentary, festival updates and artist interviews from LiveXLive’s roster of festivals – as well as hosting performances by artists under the banner LiveXLive Presents and providing festivalgoers with competitive videogaming activities.
‘Live Zone Live from the HyperX Esports Truck’ will debut in Las Vegas on 21 September, in conjunction with LiveXLive’s live video stream of the iHeartRadio Music Festival.
Esports-specific revenues are on track to exceed US$1bn in 2020, reflecting increasing buy-in to the burgeoning competitive videogaming sector by corporate brands and traditional sports and entertainment businesses.
Alongside live shows by YouTubers, internet personalities and other online ‘influencers’, esports is an important growth area for live entertainment businesses, prized for its ability to fill arenas and stadia with thousands of young fans who may have little interest in concerts or other forms of live entertainment.
“With this partnership, we are bringing the two fastest-growing live entertainment categories together”
In May, German concert giant DEAG became the latest live music company to invest in the esports sector, joining music companies including AEG, CAA, MSG, Australia’s TEG and France’s Vivendi which have acquired stakes in, or partnerships with, major esports competitions and teams.
“With this partnership, we are bringing the two fastest-growing live entertainment categories together, enhancing the experience for both consumers and brands,” says Rob Ellin, chairman and CEO of LiveXLive, whose festival livestreaming partners include Rock in Rio, Sziget, Paléo Festival Nyon, EDC Las Vegas and Montreux Jazz Festival.
“We’re also unifying two distinct communities – music fans and gaming fans – while at the same time continuing on our promise to provide the best in streaming entertainment to our core audience.”
In addition to its concert streams, Nasdaq-listed LiveXLive produces its own original music content, and also owns ticketing company Wantickets, management firm LXL Influencers and digital radio business Slacker. With esports, the company is understood to be diversifying further beyond music streaming amid investor pessimism about its business model.
Allied Esports, meanwhile, has 11 esports venue properties, including Esports Arenas in Las Vegas; Oakland, California; HyperX Esports Studio in Hamburg; and five arenas in China, including in Beijing, Shenzhen and Hangzhou. Its 12th arena, operated by Allied-affilitated Fortress Esports, will open in Melbourne later this year.
“Esports and gaming represent an expansive and emerging audience that has been incredibly hard to reach by those targeting its demographic,” says Jud Hannigan, CEO of Allied Esports. “Partnerships with forward-thinking companies like LiveXLive will allow us to continue to bridge the gap between esports and other entertainment industries and deliver high-end, brand-friendly experiences and content for consumers around the world.”