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Esports Organizations Expanding Business Models Beyond Gaming

As esports organizations start to "embark on long-term visions to shore up their positions for the future," some seek to "emulate traditional sports teams while others see something quite different, operating more like full-on corporations than merely a competitive organization," according to Noah Smith of the WASHINGTON POST. For some organizations, their business model "extends into other areas," including content creation and apparel. In this way they are "breaking from the established business models of traditional sports, based heavily on television broadcast revenue and box office receipts." Cloud9 has "decided to place some of its upcoming focus and capital on creating a competitive structure for young players." Cloud9 President Dan Fiden said that the organization’s planned L.A. HQ will "feature a public space where fans can meet up, interact with players, watch games and it will also contain the 'equivalent of the esports little league diamond.'" Gen.G CEO Chris Park said that his organization "will continue to place a heavy focus" on growing in China, Korea and the U.S. In a "departure from traditional sports," Park said that Gen.G "will not only be looking to attract top players, but top content creators as well, since they plan to 'create content that shows gaming is a culture and way of life'" (WASHINGTONPOST.com, 4/17).

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