Dell will leverage its gaming brand Alienware throughout the year as the league's hardware partnerNBA 2K LEAGUE
The NBA 2K League season begins today as governing bodies like the NBA, NFL and MLS are "working with video game publishers to build their own leagues" as a way of "attracting a broader array of advertisers and building out their brands," according to A.J. Katz of ADWEEK. MLS Senior Dir of Properties & Events James Ruth said that roughly 65% of "avid MLS followers became fans of soccer by way of EA Sports’ FIFA, which is a higher percentage than those who became MLS fans by actually playing the sport." Ruth: “As we continue to think about the channels we have available to us to build our next generation of fans, gaming is really important to that." In terms of advertising, esports leagues are "scooping up mostly endemic ads." MLS has "attracted brands like PlayStation, EA, Adidas and AT&T for its new esports league featuring 19 of MLS’ 23 teams." The NBA 2K League launches today on Twitch and "already counts Dell and Intel as advertisers." Gaming hardware brand Alienware Dir of Marketing & Esports Bryan de Zayas said, “The NBA has a global reach, so combining our efforts to deliver a great on-court experience for both the professional esports players and viewers is a natural fit." Alienware's parent company Dell is the "official PC hardware and monitor partner for the NBA 2K League, and will leverage its gaming brand Alienware throughout the season." Katz: "But slowly, more mainstream advertisers are signing on." Media agency OMD's interactive entertainment unit Zero Code Dir Dario Raciti said, “We are now noticing significant investments in esports from non-endemic brands, particularly beverages, packaged goods, snacks and auto" (ADWEEK, 4/30 issue).
BUILDING BLOCKS: The league will tip off tonight inside Brooklyn Studios, a nondescript building in Long Island City -- far away from the glamour of midtown Manhattan. With just 114 spectator seats that will be given away for free, the venue underscores how dominant the digital streaming side of esports is compared to the existing market for live event revenue. NBA 2K League GM Brendan Donohue said the league believes ticketing could be a major revenue stream in “the long term,” but for now, a video production studio is the appropriate venue. “For this season, we think this is the best venue for us, and really for the most part our audience is a streaming audience outside of the building, we’re catering to them as much as anyone else,” Donohue said. Traditional sports investors salivate over the business prospects of esports, but the jury is still out on how much demand there is for routine, regular-season games that might fill gaps in arena schedules across the country. Certain major international or national championships in popular titles such as League of Legends or DOTA 2 have filled NBA or NHL-level arenas, but all current esports leagues operate from a single league studio and do not run classic home-and-road schedules. “I could see us crawl, walk, run,” Donohue said. “Maybe we test it in a few cities next year and take the show on the road.” The entire first season will be played in the Queens location. The 7,000-square foot studio is decorated with NBA league colors and camera-facing Intel signage. The Twitch streams will be produced by Defacto Entertainment and MediaXP. Rick Phillips, a longtime director of Showtime Networks’ boxing productions, is the director. He said the presentation will look something like a combination of traditional basketball and “Who Wants to be a Millionaire?” (Ben Fischer, Staff Writer).
READY FOR THE CHALLENGE: 76ers Gaming Club F Alex “Steez" Bernstein said there is “some pressure” to help make the league succeed. Bernstein: “Going out for this league, that’s what you wanted. You wanted pressure and you wanted that competitive edge and that’s what you’re ready for.” He said the 76ers “have really taken us in as a family and it’s been a great experience so far.” Bernstein said “what fans are looking for right now is for that competitive game and that’s why when these leagues are blowing up like that they’re going to see what this 2K league is doing” (“Fast Money,” CNBC, 4/30).
For more coverage of the business of esports, visit our partners, esportsobserver.com.
