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Will the Esports Overcome Traditional Sports?

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Will the Esports Overcome Traditional Sports? Escola Universitària d’Enginyeria Tècnica de Telecomunicació La Salle Final Thesis Graduate in Management of Business and Technology Will the eSports overcome traditional sports? Student Promoter Maties Vall Gili Stephan van Uijtregt ACTA DE L'EXAMEN DEL TREBALL FI DE GRAU Meeting of the evaluating panel on this day, the student: D. Maties Vall Gili Presented their final thesis on the following subject: Will the eSports overcome the traditional sports? At the end of the presentation and upon answering the questions of the members of the panel, this thesis was awarded the following grade: Barcelona, MEMBER OF THE PANEL MEMBER OF THE PANEL PRESIDENT OF THE PANEL 2 Acknowledgments First and above all I sincerely concede my gratitude to my supervisor Stephan van Uijtregt for his well-rounded guidance and support throughout the course of this research work. In fact, without his guidance and remarks, this research would have not been completed otherwise. I express my sincere gratitude to my family, my friends, the interviewee and all the people that has answered the questionnaire. Finally, I would like to extend my thanks to La Salle University for giving me the opportunity to enrich my skills and academic discipline. I am most grateful to all my professors who have taught me, their knowledge and professionalism. 3 Abstract This thesis analyzes the evolution of eSports and traditional sports in three different segments; audience, social networks and prize pools. Quantitative research, in the form of surveys and comparative graphs, and qualitative research, in the form of an interview, has been carried out in order to answer the main research question: "Will the eSports overcome the traditional sports?” Data analysis shows that in the three segments studied, eSports and traditional sports tend to grow, but eSports evolve faster. The results also showed some differences in the age sample, as young people consume more eSports than traditional sports. 4 Executive summary The objective of this thesis is to understand the evolution of the eSports and traditional sports industry in three different segments: audience, social networks and prize pool. Using comparative graphs, we will be able to see how the two entertainment industries have evolved over the last few years. This thesis studies the evolution of three different segments (audience, social networks and prize pool) of the main events of eSports and traditional sports, as well as the possible factors that affect these industries. To analyze the three segments, we have used comparative graphs that show the evolution of the three segments in recent years. For each of the segments, events and profiles in the social networks have been chosen and put in context to be analyzed. Also, thanks to the responses obtained in the survey, it has been possible to analyze the preferences of fans of eSports and traditional sports. The study of these segments can help to know how far the eSports can go, because thanks to new technologies, they are evolving very fast. Quantitative research was conducted to better understand the preferences and tastes of fans in both industries. A survey was distributed online with the aim of creating an overview of the Spanish market in the field of eSports and traditional sports, including all types of ages. The surveys were written in Spanish and the results were translated to English. In addition, an evolutionary study was conducted to show a comparison of the two industries. The results confirm that traditional sports continue to outperform eSports in all three segments. But the growth of eSports in recent years is greater than traditional sports. New technologies are helping the eSports industry a lot, and young people is adopting these new technologies more quickly. At the end, all you need is a device and an internet connection to enjoy eSports. 5 Table of contents Acknowledgements Abstract Executive summary Table of contents List of general figures 1. Introduction 2. Research question and objectives 3. Literature Review – eSports 3.1. Introduction 3.2. What is inside eSports? 3.3. Audience in eSports 3.4. Main tournaments of eSports 3.5. How many revenue generates 3.6. Teams in eSports 4. Literature Review – Traditional Sports 4.1. Introduction 4.2. Most popular sports 4.3. Most viewed events 4.4. How many revenue generates 4.5. Sports teams that have entered the eSports 5. Research plan 6. Hypotheses 7. Methodology 8. Quantitative research 8.1. Questionnaire 8.2. Comparative eSports vs traditional sports 8.2.1. Audience and peak viewers 8.2.2. Social networks 8.2.3. Prize Pool 9. Qualitative research 10. Research finding and analysis 10.1. Overview of the respondent 10.2. Results and analysis 10.2.1. Audience in eSports and traditional sports events 6 10.2.2. Followers in Social Networks 10.2.3. Prize Pools in eSports and traditional sports 10.2.4. Analysis of preferences and comparisons to traditional sports 11. Discussion 11.1. Limitations 12. Conclusions and future research 13. References 14. Apendix 14.1. Interview 14.2. Questionnaire questions 14.3. Questionnaire responses 14.4. Other graphs List of general figures Figure 1. Audience in eSports and traditional sports events Figure 2. Audience in eSports and traditional sports events [excluding World Championship LOL and Champions League Final] Figure 3. Platform used by spectators to watch eSports Figure 4. Hour per week dedicated to watch eSports Figure 5. Total followers per profile Figure 6. What fans follow most (1 to follow most, to 4 follow last/don’t follow) Figure 7. Prize pools in eSports and traditional sports events List of general tables Table 1. Audience of most viewed events Table 2. Hypotheses Table 3. Questionnaire questions Table 4. Chosen events (audience) Table 5. Chosen profiles (social networks) Table 6. Chosen events (prize pool) Word Count: 10.328 7 1. Introduction What are eSports? How is this industry developing? Will they surpass traditional sports? Do new technologies help young people access eSports events? Which are the biggest prize pools of the most important tournaments? These are the questions we ask ourselves and to which we will seek answers throughout the present work. All these inquiries brought me to state my research question: "Will the eSports overcome traditional sports?" To carry out a proper investigation we will analyze three segments [Audience, Social Networks and Prize Pools] of different events and profiles, and compare it with the data obtained from the survey. Today, thousands of people watch eSports every day, and this industry has no more than 20 years of history. Video game companies make this phenomenon possible, as they are in charge of organizing the tournaments. Thousands of gamers, as the players in this world call themselves, train many hours a day to be the best. On the other hand, we have the traditional sports, some of them with centuries of history, are still present in the day to day of many fans. This industry continues to grow in all aspects, and thanks to new technologies, some sports have been able to implement them to make a more competitive game. Finally, being passionate about video games and sports, I have been curious to investigate this new industry and compare it with traditional sports. Furthermore, it is an industry where technology plays a fundamental role in the development, broadcasting and experience of the consumer. 8 2. Research question and objectives Research question is as follows: The eSports world is increasingly having more media and economic repercussion year by year. Will the eSports overcome the traditional sports? The research objectives are as follows: - Know and analyze the audience of the most popular video games tournaments. - Know and analyze the audience of the most popular sports tournaments. - Know how the eSports teams are structured to participate in the tournaments. - Investigate the number of fans in social networks eSports teams and traditional sports teams have. - Investigate the biggest prize pools in eSports tournaments. - Investigate the biggest prize pools in traditional sports tournaments. 3. Literature Review – eSports 3.1. Introduction According to Juho Hamari and Max Sjöblom (2016); eSports (electronic sports) is as “a form of sports where the primary aspects of the sport are facilitated by electronic systems; the input of players and teams as well as the output of the eSports system are mediated by human-computer interfaces.” In more practical terms, eSports commonly refer to competitive (pro and amateur) video gaming that is often coordinated by different leagues, ladders and tournaments, and where players customarily belong to teams or other “sporting” organizations which are sponsored by various business organizations. During recent years, eSports have become one of the most rapidly growing forms of new media driven by the growing provenance of (online) games and online broadcasting technologies. It has been estimated that more than 70 million people watched eSports during 2013. In the other hand, AJ Willingham (2018), describes the eSports as "the world of competitive, organized video gaming." Competitors from different leagues or teams face off in the same games that are popular with at-home gamers: Fortnite, League of 9 Legends, Counter-Strike, Call of Duty, Overwatch and Madden NFL. These games are watched and followed by millions of fans all over the world, who attend live events or tune in on TV or online Streaming services like Twitch allow viewers to watch as their favorite gamers play in real time, and this is typically where popular gamers build up their fandoms. 3.2. What is inside eSports? Within electronic sports we can find different genres of video games. The most common ones associated with electronic sports are the real-time strategy (RTS), the first-person shooter (FPS), the fight and the online multiplayer battlefield (MOBA).
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