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WEBINAR HOSTS • Rick Ducey, Managing Director, BIA Advisory Services • Mitch Oscar, Director, Advanced TV, USIM and executive industry advisor to BIA Advisory Services

Today’s Topics: Video Gaming & Esports

Rick Ducey, Managing Director Mitch Oscar, Advanced TV BIA Advisory Services USIM and BIA

Esports has athletes too. And, they are ready to Battle!

. From a local media perspective, esports is a particularly promising as a new platform to drive incremental advertising revenue. . Esports is a video game-based platform in which players compete on teams in a growing assortment of locally based leagues and in local forums. . The distinction is that instead of live physical games, esports contests are among live contestants but competing online in virtual gaming environments. . Esports athletes can compete anywhere but the bigger events are venue-based just like an arena- based major league sporting event.

Esports is an adjacent market for local media companies, something to consider.

Esports is a timely topic as the local media industry wrestles with secular shifts in audience fragmentation and shifts across different platforms, devices and types of content.

Esports is offering: • Fast Growing Audiences • Hard to Reach Demos • Incremental Revenue Streams • Location-Based Leagues

What can we expect next? Let’s meet our guest panel.

Ben Paro Esports Specialist Lori Burgess Chris Blakely MRI-Simmons COO SVP Digital Media Beasley XP Comscore

Zach Oscar Paul Wright Assoc. Marketing Mgr Sr. Dir. Digital Media Simulmedia Comscore

Please email Zach for a copy of the slides he presented on the webinar: [email protected] Lori Burgess COO Beasley XP Video Gaming and Esports

VISION FOR BEASLEY ESPORTS

Beasley Esports is the newest division of Beasley Media Group – a legacy media company largely rooted in the radio space.

BMG diversified into esports in Fall 2018 and committed to creating high-quality, cross-platform content for next-gen consumers interested in video games and esports.

From our CheckpointXP brand that covers the news and opinions fueling the gaming industry, to the increasingly hot collegiate space with CheckpointXP On-Campus and now the Houston Outlaws—our professional esports Overwatch League Team, we have our finger-on- the-pulse of the entire esports and video gaming ecosystem.

Our content creators, players and personalities have the ability to leverage their influence, popularity and expertise on behalf of brands interested in aligning with GenY & Z consumers in this hottest segment of the sports entertainment industry. WHY ESPORTS

“BY 2021, ESPORTS WILL HAVE MORE VIEWERS IN THE US THAN ALMOST EVERY SPORTS LEAGUE.

141M

ESPORTS 84M 79M 63M

32M “THERE’S NO STOPPING ESPORTS” GOLDMAN SACHS WHY ESPORTS

TRADITIONAL SPORTS VS ESPORTS VIEWERSHIP

Digital 20% Linear 80% 80%

20%

Traditional Sports Esports

% Esports audience under age 25 79 Source: Goldman Sachs Esports Report, October 2018 WHY ESPORTS

Esports sponsorship revenue is expected to grow to $1.1B by 2022.

NFL and NBA sponsorship revenue in 2018 was $1.4B and $1.1B, respectively. BeasleyXP The newest division of Beasley Media Group

• Diversification Plan to reach the next gen consumer thru media.

▪ Connect gamer with major brands via our multi-platform content offerings .

▪ Deliver high quality, cross-platform content for consumers by catering to esports leagues, players, streamers and fans—and the games & music that capture it all. BeasleyXP Continues to build…

. September 2018: BMG purchased CheckpointXP . April 2019: BMG invested in the Renegades franchise . September 2019: Launched CheckpointXP On Campus— the voice of collegiate esports, by students for students . November 2019: BMG strengthened the company’s commitment to esports with the acquisition of the Houston Outlaws . January 2020: Launched CheckpointXP—Local across (30) stations sites . BMG acquired CheckpointXP and embarked on rapid expansion to grow our esports footprint and credibility ▪ Syndicated radio show on 70 stations across the USA and Canada ▪ Now a multi-platform brand with content on YouTube, Twitch, CheckpointXP.com, Radio.com and several esports lifestyle driven podcasts ▪ Serves as the voice of esports and video gaming—covering the news and opinions that capture the wide range of emotional, sometimes polarizing perspectives from the industry’s fans, players and game developers 2020 Lineup

AOE (All of Esports) The Other Identity We break down the biggest topics of the day in the world of gaming; major CheckpointXP host Robbie Landis is joined by Marvel veteran Ben Morse to talk breaking news, a controversial Top 10 list, or an Op Ed piece on new releases; if about comic books and the culture surrounding them. They cover the Marvel it’s important to the esports community it’s covered cinematic universe and the animated shows and movies we grew up with

CheckpointXP On Campus The OWL’S Nest With student hosts from UNLV, we partner with schools, clubs and collegiate CheckpointXP Overwatch expert Robbie Landis and Blizzard’s caster, Jake Lyon talk programs across the country to talk about everything from scholarship to about the Overwatch League; major roster moves, changes to the game, curriculum to life on campus; mixing news, interviews, opinion and lots of fun tournaments and the world of competitive Overwatch

CheckpointXP Radio Show and On Demand CheckpointXP AFK If you miss an episode of our syndicated radio show you can listen to it anytime CheckpointXP AFK is a gaming lifestyle, entertainment, news, and conversation at CheckpointXP.com show; from cosplay to consoles we cover everything you care about when you're away from the keyboard LTAG (Let’s Talk About Gaming) Late night TV meets video games; the humor and fun in the world of gaming. Guests will join our host “on the couch” for interviews and games, improv and more (Q2 start); ICYMI – get this podcast AUDIENCE

Content targets the most passionate, hard core and interested consumers that are propelling esports and the gaming industry forward

▪ Hardcore competitor — who loves the thrill of victory and the agony of defeat whether it’s in games they are playing or watching others play

▪ Occasional social player — who enjoys watching video gaming, esports and gaming lifestyle related music, TV and movies

▪ Lapsed gamer — who may have hung up their controller (for now) but still lusts for the game and all they are missing

Our audience ranges from 12-65:

▪ Teens dreaming of making it –as popular streamers ▪ Collegiate and Pro Players ▪ Super Fans ▪ Target 30-65 demo who still play, have kids that play – and keep pace . Brand Extension in September 2019: . The Voice of Collegiate esports & video gaming — by students, for students. . Varsity and club esports tournaments . College curriculums focused on gaming, STEM . Esports and the collegiate lifestyle . Collegiate esports scholarship programs

Goes behind the scenes with professional and student journalists; covering players, coaches, students, fans and thought leaders.

Covers collegiate tournaments, team training regimens, school rivalries, scouting reports, pro recruitment news and more.

Capturing the growing academic curriculums colleges are creating for future career-readiness March 2019: Invested in one of North America’s premier multi- gaming esports organization—to walk-the-walk

Featuring professional players and teams in the world’s largest competitive games. AN ESPORTS TEAM WITH THE SOPHISTICATION OF A LARGE MEDIA COMPANY November 2019: BMG Purchased the Houston Outlaws One of 20 city-based Overwatch League teams

Created by acclaimed publisher Activision Blizzard

Designed for engaging gameplay and ‘spectacular’ experiences

Overwatch breeds values and positivity; qualities that endear the game to its fanbase ALIGN WITH ONE OF PRO SPORTS YOUNGEST AND MOST POPULAR TEAMS, LEAGUES AND PLAYERS

OVERWATCH OVERWATCH think “Football” LEAGUEthink “NFL” the world’s first...

100+ ‘Game of the Year’ Global, city-based esports league with a home and away format Awards Live esports event to air on ESPN’s 50+ million players globally flagship network in primetime

91 average Metacritic score Esports league to adopt AMA as a key uniform viewership metric Played in 190+ countries Esports championship over broadcast on ABC OVERWATCH FANS ARE YOUNGER THAN FANS OF OTHER SPORTS

57 YEARS 49 50 OLD YEARS YEARS 42 OLD OLD YEARS OLD

24 YEARS OLD “OVERWATCH: ONLY SPORT TO BE UP YEAR OVER YEAR IN THE 18-34 AGE DEMO.” NIELSEN

+11%

-3% -2% -11%

-16%

Traditional sport viewership numbers from Nielsen Sports September 2019 Overwatch League data compiled by Nielsen Source: Nielsen third party reporting Social Media Engagement

95,253

72,432 62,480 v 54,999 25,229 96,974 95,768 93,718 103,681 94,021 YouTube Subscribers

144,229 Instagram 133,934 122,726 TwitterFollowers Followers 120,293 113,052 Sponsorship Opportunities

▪ We deliver highly targeted opportunities to advertisers and sponsors seeking alignment with video gamers and esports. ▪ Opportunities to seed brands into gaming culture & lifestyle, the gateway to reaching next-gen consumers throughout the USA ▪ Content Sponsorships leverage personalities, players and expertise across platforms

▪ Sponsored content ▪ Video Episodic Series ▪ Branded content ▪ Esports Minutes – national & local ▪ Live Reads radio spots ▪ Mobile messages ▪ Breaking New Segments on Twitch ▪ Tutorials ▪ Pre-Roll Sponsorships ▪ Podcasts ▪ Social Media Posts & Influencer campaigns ▪ Audience extension programs reaching gamers Sponsorship Opportunities

LOGO & IP RIGHTS PLAYER RIGHTS & APPEARANCES

DIGITAL BRANDING SOCIAL & VIDEO CONTENT

JERSEY LOGO PLACEMENT HOME GAMES & EVENTS Sponsorship Opportunities

Product Placement & Endorsement—across all platforms ▪ Studio Naming Rights ▪ Outlaws Practice Facility & Content Studio ▪ Renegades/Game Time Training Facility Naming Rights

Events ▪ Stadium-sized events/Homestands ▪ Pro, College and Amateur Events & Tournaments ▪ Mall Events & Watch Parties ▪ Intimate Meet & Greets for fans and trade ▪ Guest Appearances ▪ In-store activations with branded promo signage ▪ Tutorials ▪ Charity Tie-ins

Product Licensing, Contests & Sweepstakes ▪ National and Local Contesting ▪ Customized Merchandise Some reasons brands are diving in:

▪ Hard-to-reach demo ▪ Affluent audience ▪ Time spent with the medium ▪ Can avoid ad blockers ▪ Audience engagement level ▪ Hottest sports entertainment industry on the planet BEST HOMESTAND IN THE LEAGUE

Location Revention Music Center, Houston Date February 29-March 1 Attendance 2,898 NPS 71 Ben Paro Director, Emerging Category Sales Sports and Esports Specialist, MRI-Simmons Aligning with the right esports fan

BIA – May 2020 About MRI-Simmons

Trusted Reliable Actionable consumer currency/standard and predictive data and faster insights

Quality Attitudes Insights MRI’s Survey of the American 2000+ psychographic Automated segmentation and Consumer is the industry’s only statements Insights in 5 seconds or less MRC accredited multi-media service

Clients Scale Speed 300+ agencies 37k+ data points projectable On-demand insights, 200+ media companies to the U.S. population projectable to U.S. population, in 2 weeks 100+ brands

36 Sports and Esports Fan Study

• Fused to Survey of the American Consumer®

• 10,000 respondents annually

• Spring and Fall releases Sports and Esports Fan Study

• Fans Segmented by Sport and Level of Fandom

• Covers all Major Sports and Esports

• Behaviors and Attitudes  Sponsorship, Media, Expressions of Fandom, Merch, Betting, and more

Defining Esports

“Multi-player video games played (competitively) in organized events by professional gamers competing for official prizes. Fans can attend these competitions in- person or tune-in to watch (coverage of these events) on TV or online.”

2020 MRI-Simmons Sports Study There are 39 Million Esports Fans among US 18+

Among US 18+ (Base Size: 246 M) 39 Million Esports Fans 16%

Source: MRI-Simmons, Sports and Esports Fan Study, 46 Esports Fandom Doubles among 18-34 Universe

Among US 18+ Among US 18-34 (Base Size: 246 M) (Base Size: 71 M)

21.4 Million Esports Fans 30% US 18-34

Source: MRI-Simmons, Sports and Esports Fan Study, 47 Fans of Major Sports Among US 18-34

National Football League (NFL) 45%

Major League Baseball (MLB) 36%

College Football 33%

National Basketball Association (NBA) 30%

Esports 30%

College Basketball 28%

National Hockey League (NHL) 25%

Nascar 19%

Q2: How would you describe your level of fandom for each of the following sports? Fandom defined as any selected: Super-Fan, Average-Fan, Light-Fan, (excluding Non-Fan) Source: MRI-Simmons, Sports and Esports Fan Study, 48 Types of Esports Shooter Strategy Sports Fighting Games Other

Team- Battle Racing SIM Based Royale

Other Traditional

Real Time Auto Card & Strategy Battler Deck Building MOBA Types of Esports Shooter Strategy Sports Fighting Games Other

Team- Battle Racing SIM Based Royale

Other Traditional

Real Time Auto Card & Strategy Battler Deck Building MOBA MOBAs SHOOTERS MULTI PLAYER ONLINE BATTLE ARENA

65% of all Esports Fans

Source: MRI-Simmons, Sports and Esports Fan Study, MOBA AND SHOOTER ESPORTS U.S. AGE 18-34

Indexed against the average Adult Age 18-34 Source: MRI-Simmons, Sports and Esports Fan Study, 52 MOBA AND SHOOTER ESPORTS U.S. AGE 18-34

66% (97) MEDIAN AGE 27% (114) 81% 13% 9% male (97) (126) (162) 25 White African Asian Spanish/ American Hispanic

Indexed against the average Adult Age 18-34 Source: MRI-Simmons, Sports and Esports Fan Study, 53 MOBA AND SHOOTER ESPORTS U.S. AGE 18-34

66% (97) MEDIAN AGE 27% (114) 81% 13% 9% male (97) (126) (162) 25 White African Asian Spanish/ American Hispanic

MEDIAN HH EMPLOYED FULL-TIME INCOME FULL-TIME STUDENT $87k 60% (105) 10% (119) [▲15% US Median]

Indexed against the average Adult Age 18-34 Source: MRI-Simmons, Sports and Esports Fan Study, 54 MOBA AND SHOOTER ESPORTS U.S. AGE 18-34

& INFLUENTIAL INFLUENCED

Indexed against the average Adult Age 18-34 Source: MRI-Simmons, Sports and Esports Fan Study, 55 MOBA AND SHOOTER ESPORTS GE U.S. A 18-34 & FASHIONABLE

WORLDLY & INFLUENTIAL INFLUENCED

Indexed against the average Adult Age 18-34 Source: MRI-Simmons, Sports and Esports Fan Study, 56 MOBA AND SHOOTER ESPORTS U.S. AGE 18-34 & FASHIONABLE

WORLDLY & INFLUENTIAL INFLUENCED

INTELLECTUALLY TECHIE AMBITIOUS CURIOUS & HANDY

Indexed against the average Adult Age 18-34 Source: MRI-Simmons, Sports and Esports Fan Study, 57 MOBA AND SHOOTER ESPORTS U.S. AGE 18-34 & FASHIONABLE OPTIMISTIC

WORLDLY RISK-TAKERS & INFLUENTIAL INFLUENCED ACTIVE

POLITICALLY ENGAGED

INTELLECTUALLY TECHIE AMBITIOUS CURIOUS & HANDY MOVIES!

Indexed against the average Adult Age 18-34 Source: MRI-Simmons, Sports and Esports Fan Study, 58 MOBA / REAL-TIME STRATEGY FANS

Source: MRI-Simmons, Sports and Esports Fan Study, 59 MOBA / REAL-TIME STRATEGY FANS, ARE ESPECIALLY…

Asian Advanced Education Male (▲5%) (Index: 119) Married (33%)

Indexed against US18-34, MOBA & Shooter Esports Fans Source: MRI-Simmons, Sports and Esports Fan Study, 60 MOBA / REAL-TIME STRATEGY FANS, ARE ESPECIALLY…

Asian Advanced Education Male (▲5%) (Index: 119) Married (33%)

TECHIE

▲TV

Indexed against US18-34, MOBA & Shooter Esports Fans Source: MRI-Simmons, Sports and Esports Fan Study, 61 FEMALE MOBA AND SHOOTER ESPORTS U.S. AGE 18-34

INFLUENCED AND AMBITIOUS TECHY INFLUENTIAL

PROUDLY UNCONVENTIONAL

INTO FASHION AND SHOPPING

ECO-CONSCIOUS

Indexed against the average US Women, Age 18-34 Source: MRI-Simmons, Sports and Esports Fan Study, 62 MOBA AND SHOOTER ESPORTS U.S. AGE 18-34

5% 3%▼ 15%▲ 15% 12%

6%▼ 20%

▲: Over-Index 14%▲ 8%▲ ▼: Under-Index

Indexed against the average US Age 18-34 Source: MRI-Simmons, Sports and Esports Fan Study, 63 64 Broader Implications

(… so why is this important?)

65 TV as a source of entertainment continues to decline. Especially among Young Males (Down 42% since 2010)

TELEVISION IS MY MAIN SOURCE OF ENTERTAINMENT

50.0%

45.0% F2010 to F2019: 40.6% 40.0%

US Total: ▼11% 35.0% 34.2% 30.0% 28.9% Total 18-34: ▼31% 25.0% 23.8% 20.0% M 18-34: ▼42% 15.0%

F 18-34: ▼20% 10.0%

5.0%

0.0%

US TOTAL U.S. 18-34 U.S. MALE 18-34 U.S. FEMALE 18-34

Average change every 6 months: - 0.3% - 0.7% - 0.9% - 0.5%

Source: MRI-Simmons NHCS 2010 – 2019, Spring and Fall waves 66 Today, 1-in-3 (32%) M18-34 spend more time playing video games than watching TV. Up 58% since 2010.

I SPEND MORE TIME PLAYING VIDEO GAMES THAN WATCHING TV 35.0% 31.9%

30.0% F2010 to F2019:

25.0% US Total: ▲40%

20.0% 18.7% Total 18-34: ▲47% 15.0% M 18-34: ▲58% 10.0% 7.1%

F 18-34: ▼4% 5.0% 5.3%

0.0%

US TOTAL U.S. 18-34 U.S. MALE 18-34 U.S. FEMALE 18-34

Average change every 6 months: + 0.1% + 0.3% + 0.6% 0.0%

Source: MRI-Simmons NHCS 2010 – 2019, Spring and Fall waves 67 Opportunities for Advertisers

The Esports Ecosystem

TEAMS Play in PROFESSIONAL ESPORTS Managed by EVENT COMPETITIONS ORGANIZERS

Individual Leagues Tournaments/ Third-Party Game Players Nonleague Events Event Operator Publisher

Streamers Broadcaster / Platform Game Served to fans

68 Ben Paro Director, Emerging Category Sales Sports and Esports Specialist [email protected]

69 Chris Blakely SVP, Digital Media, Comscore

Paul Wright SR. Director, Digital Media, Comscore Multi-Platform Gaming Trends in 2020

Chris Blakely Paul Wright SVP, DIGITAL MEDIA SR DIRECTOR, DIGITAL MEDIA

71 Gaming content is capturing an engaged audience, and growing significantly. 211 +144% Total Unique Visitors in Gaming Category Growth in Time Spent on Gaming Sites (in Millions, March 2020) (vs. Q1 2017) 35% +81% U.S. WiFi Households with an Growth in Time Spent Watching Gaming Active Gaming Console Videos on Desktop (vs. Q1 2017)

Source: Comscore Media Metrix Multi-Platform, Games, Average of total minutes Jan-March, 2020 vs. Jan-March, 2017. U.S. and 72 Comscore Video Metrix, Desktop, Games, Average of Jan-March, 2020 vs. Jan-March, 2017, U.S. and Comscore Connected Home, U.S., March 2020 The majority of gamers engage across multiple screens, with PC gamers showing a higher affinity for variety.

PC GAMERS CONSOLE GAMERS

55% play across all platforms 60% play across all platforms PC, console, and mobile PC, console, and mobile  Only 9% of PC gamers play only on a PC  Only 8% of console gamers play console only  43% play a variety of games and genres  33% play a variety of games and genres

Comscore State of Gaming Survey, U.S., 18-65, April 2020 73 As more consumers stay at home, there have been notable rises in both console and desktop gaming in recent months.

AVERAGE CHANGES IN ENGAGEMENT, MARCH 9-APRIL 19, 2020 VS JAN. 27-MARCH 8, 2020

Desktop, Mobile and Console Engagement Before and After Shelter-in-Place Orders

Source: Comscore Gaming Report, March 9-April 19, 2020 data vs. January 27-March 8, 2020, U.S. 74 Engaged duration: total time with the PC game in the foreground. Average metrics from top 10 PC, mobile, console games used Metrics for PC games include both desktop PC and Mac data Esports watchers are a significant segment of gamers – and gamers who play on multiple devices are much more likely to watch.

% Who Have Watched Esports by Devices They Use to Play Games

Console- 24% of gamers only 14% have watched esports in the past PC- three months only 14%

PC, Console, and Mobile 36%

75 Among esports watchers, first person shooters, battle royale, and MOBAs are top genres gamers have watched.

% of Esports Watchers Who Have Watched Each Genre

First Person Shooter (FPS) 57%

Battle Royale 49% Multiplayer online battle arena (MOBA) 46% Sports games 36%

Real-time strategy (RTS) 21%

Card games 14%

Other 6%

Comscore State of Gaming Survey, U.S., 18-65, April 2020 76 “What genres of esports games have you watched?” A significant segment of esports watchers have watched esports for genres they do not play themselves.

% Of console esports watchers Who watch esports for…

Battle Royale First-Person Shooter

Among Those Who Do Play Genre 76% 71%

Among Those Who Do Not Play Genre 45% 38%

Comscore State of Gaming Survey, U.S., 18-65, April 2020 77 Many gaming events have filled the void left by lack of traditional sports.

Just some recent gaming events created and aired on TV (and/or digital)

Overwatch League NASCAR iRacing Pro ESPN Invitational Series FOX, FS1 League of Legends ESPN and ESPN2 Madden NFL 20 competition eMLS Tournament Special ESPN2 FS1 and Fox Deportes Rocket League Season 8 NBA 2K League ESPN2 ESPN and ESPN2

78 Esports took a step up in 2019 with the debut of the Overwatch League on broadcast TV.

87,000 Average Audience of all 2018 Overwatch League telecasts.

420,000 Average Audience of the 2019 Overwatch League Grand Final.

Source: Comscore TV Essentials, May 2020 79 New gaming events are attracting mainstream audiences.

NBA 2K Players Tournament Viewership Index Among Heavy March Madness and NBA Viewers

TOURNAMENT PREVIEW ALL NBA2K PLAYERS TOURNAMENT TELECASTS 600 510 500 485

400 318 300 280

200 151 137 100

0 Heavy MM Viewers Heavy NBA Viewers M18-24

Source: Comscore TV Essentials, May 2020 80 Esports and gaming measurement in the future

PARTNERSHIP WITH TWITCH STATE OF GAMING STUDY Cross-platform Twitch audience Wave 2 of the survey has completed, reporting: with a full report being released soon. • Livestreaming video consumption Have burning questions about gaming? • Demographics You can purchase questions in the next • Key audience segments wave of the omnibus survey. • International market-level audiences

81 Thank you!

Chris Blakely Paul Wright SVP, DIGITAL MEDIA SR DIRECTOR, DIGITAL MEDIA

82 Conclusions

• Esports is becoming more broadly accepted as a legitimate media platform with high growth spending potential in paid media advertising and sponsorships from leagues, teams, venues and distributors.

• It’s also showing high audience growth rates, particularly in younger demo groups that are hard to reach elsewhere.

• While it is a complex ecosystem, it is worth figuring out and determining priorities for entering and participating in the parts of this market that look to make the most sense.

• BIA is here to help you assess the opportunity. Contact us at [email protected] if you’d like to set up a time to discuss further.

• And, enjoy a complimentary report: https://bit.ly/BIA-EsportsPaper

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