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MEBM END TERM

PROJECT
E-Sports Industry- Online Gaming in current era

Anmol Rathore MBA20366

Saurav Kumar MBA20286

Siddhant Bhargava MBA20348

Bhavesh Motwani MBA20281

Aman Ranga MBA20339


Table of Contents

Present situation of the segment 3

OTT (over-the-top) and digital.....................................................................................3


Markets for broadcasting.............................................................................................3
Market Opportunities 4

Increased Investments..................................................................................................4
Strong Demand............................................................................................................4
Policy Support.............................................................................................................4
Opportunities that are appealing..................................................................................4
Challenges 5

Priorities in technology................................................................................................5
Increase the security of your content............................................................................5
Allow for cross-product interactivity............................................................................6
Suggestions 6

Regulatory Implementations -......................................................................................6


Ethical Gaming -.........................................................................................................6
Future of the Industry 7

Perspectives for the Future...........................................................................................7


Practical examples 7

Conclusion 10

References 11
Present situation of the segment 
OTT (over-the-top) and digital
 In 2020, India's digital media sector was valued at Rs. 234.9 billion (US$ 3.16
billion), and it is predicted to grow at a CAGR of 22% from 2019 to 2023,
reaching Rs. 424.5 billion (US$ 5.72 billion).
 In India, consumer demand for content is driving the increase. By 2023,
demand for original content will have increased to about 3,000 hours per year,
up from 1,187 hours in 2020.
 By 2023, it is predicted that selected short video platforms would account for
25% of overall internet video viewing time.
 Regional language consumption on OTT platforms is predicted to overtake
Hindi consumption by 2025, which accounted for 45 percent of total time spent
in 2020.
 By 2020, there will be 356 million mobile video watchers, thanks to an increase
in the number of smartphones.
 In 2020, the Indian gambling sector was worth $930 million, and by 2024, it is
estimated to be worth $3.8 billion.
Markets for broadcasting
• The Ministry of Information and Broadcasting received Rs. 4,071.23 crore (US$
562.80 million) in the Union Budget 2021, while Prasar Bharati received Rs.
2,640.11 crore (US$ 364.96 million).
• The Press Council of India, the Films and Television Institute of India (FTII), and
the Indian Institute of Mass Communication had budgets of Rs. 20 crore (US$ 2.76
million), Rs. 58.58 crore (US$ 8.10 million), and Rs. 65 crore (US$ 8.99 million,
respectively.
• Under social services, Rs. 2,921.11 crore (US$ 403.81 million) was set aside for
broadcasting.
• Rs. 971.26 crore (US$ 134.27 million) was spent on information and publicity.
• SES S.A. inked a new nine-transponder capacity deal in India for its SES-8
satellite in July 2021. The firm has secured a multi-transponder arrangement with
NewSpace India Limited (NSIL), a Central Public Sector Enterprise (CPSE) under
the Department of Space (DoS).
Market Opportunities
Increased Investments
FDI inflows into the data and broadcasting area (counting print media) arrived at $
9.5 billion between April 2000 and March 2021.
The Union Budget 2021 raised the cash allocation to autonomous organisations like
the Press Council of India (Rs. 20 crore (US$ 2.76 million) in FY22 vs. Rs. 8.9
crore (US$ 1.23 million) in FY21). FTII (Films and Television Institute of India)
(Rs. 58.58 crore (US$ 8.10 million) in FY22, compared to Rs. 49.40 crore (US$
6.83 million) in FY21.
Strong Demand
India's internet users are expected to reach 900 million by 2025, up from 622
million in 2020, according to a report published by IAMAI and Kantar Research,
with a CAGR of 45 percent between 2020 and 2025. The advertising-based video
on demand (AVoD) sector, according to a FICCI-EY report, is expected to expand
at a CAGR of 24 percent to reach US$ 2.6 billion by 2025, up from 0.38 percent in
2019.
Policy Support
The Information Technology (Intermediary Guidelines and Digital Media Ethics
Code) Rules 2021 were published on February 25, 2021, with the goal of providing
a progressive institutional system and a three-tier grievance redressal framework
for news publishers and OTT platforms. The government has lifted the FDI cap
from 74 percent to 100 percent.
Opportunities that are appealing
 The media and entertainment industry in India is predicted to be worth between
US$ 24 and US$ 100 billion by 2030.
 According to a FICCI-EY report, television will remain the largest segment in
the M&E industry, rising at a CAGR of 7% to Rs. 847 billion (US$ 12.01
billion) by 2023.
 The number of OTT viewers in India increased by 47 percent between 2020 and
2021 as a result of "stay at home" laws, enhancing market prospects for content
platforms and app developers in the country.
Challenges
In India, esports is a rapidly rising sector. There is a lot of excitement surrounding the
sport, and it is quickly gaining popularity. There are, however, certain substantial obstacles
it must overcome. The following are the most significant challenges that the Indian
eSports sector will face in the future:
Priorities in technology

o Create a personalised and differentiated customer experience.


 The requirement to differentiate product design and customer
experience (CX) becomes increasingly critical as the number of video,
audio, and textual products continues to expand with the launch of
more players and goods.
 Interactivity, AR, VR, and other technologies can help differentiate the
product and establish a dedicated fan following by incorporating
sustainable and genuine experiencing components.
o Regulatory compliance can be automated.
 The multiplicity of restrictions concerning data protection, complaints
handling, content, advertising, data storage, age limits, access to
pornographic content, and so on can be intimidating when dealing with
millions of clients. Scaling efficiently while remaining compliant with
rules would necessitate automating these processes.

Increase the security of your content

o With ad spending predicted to double by 2025, print, radio, and out-of-home


(OOH) segments will need improved measurement tools, and tech solutions
will be necessary to keep interest in these media alive.
o Furthermore, the demand for media spend assurance will grow in order to
provide assurance about the efficiency of ad campaign planning and execution,
as well as brand safety in non-curated media settings.
Allow for cross-product interactivity.

o Developing a plug-and-play interactivity stack that can be used across


channels, content genres, and media can assist increase audience engagement
and time spent.
o The ability to monitor and shut down pirate sites in real time around the
publication of new material might help enhance the efficiency of marketing
costs when seen through the lens of subscription products and an ineffectual IP
enforcement regime. Subscription gaming will become a reality, but it will
take a lot of infrastructure work.

Suggestions
Regulatory Implementations -

 To guarantee regulatory clarity and a single point of contact for problems,


establish a nodal ministry.
 Allow self-regulation mechanisms to ensure, among other things, fair play, child
safety, adherence to a content code, security, privacy, and random number
generating certification. As India crosses a billion screens by 2025, piracy is
expected to increase significantly.
 Create a haven for game publishers in India by cutting taxes and/or giving
incentives to enable onshoring of the US$129 billion game publishing sector.
 Encourage the establishment of global game development centres in India to make
the development of new games easier.
 Plan to outsource gaming processes to India, and encourage scalable hosting of
game technology development, game design, game layering, and revenue back-
office services in India.

Ethical Gaming -

 Clear up any misconceptions you might have regarding gaming, gambling,


esports, and betting. Clear away any uncertainty about gaming, gambling,
esports, and betting by passing a common national legislation on what is
acceptable to harmonise central and state government viewpoints.
 Building esports venues alongside national stadiums to hold international
competitions and informing the public about the activities that are taking
place.

Future of the Industry

By 2025, the number of online gamers in India will exceed 500 million, making it the third
largest M&E industry in the country. o While revenue growth will be led by mobile-based
real-money gaming applications across all verticals, including Esports, fantasy sports, casual
gaming, and other games of skill, the segment will increase across all verticals.

Perspectives for the Future

 Internet gaming is predicted to be worth INR155 billion by 2023.


o By 2023, we expect the online gaming business to grow at a CAGR of 27%,
reaching INR155 billion.
o It is likely to become the 3rd largest segment of the Indian M&E sector by
2025.
o By 2030, it has the potential to employ a million Indians.
 Subscription-based gaming will become a reality.
 By 2023, we expect the online gaming category to grow at a CAGR of 27% to
INR155 billion, taking it to the 3rd largest segment of the Indian M&E sector.
 By 2030, it has the potential to employ one million Indians.

Practical examples
Esports is a popular and professional form of video game competition that is growing
in popularity by the day. It is a well-organized multiplayer video game competition that takes
place between professional game players. Since the beginning of the video game era, India
has had a number of teams in the top ten.
 India's Top 10 ESports Teams
 Orange Rock is a PUBG Mobile team from India that is owned by Pole To Win
International (PTW). The team is ranked first in India and is competing in the
competition. Bharat "Ribbiz" Reddy serves as the team's manager. The team's total
earnings are $125,706.
 TSM Entity is a well-known squad that is currently ranked second in the
tournament. The squad has a record for placing sixth in the PUBG Mobile
tournament, winning $14,500 and $26, 781 in prize money.
 Celts are one of the top three teams in India, as they finished 9th in the PUBG
Mobile Club Open. The award of $10,500 was won by one of the top teams. The
team's earnings are $55,222.
 Total Gaming (Free Fire) is a company based in India that has entered the Free
Fire market. It was signed as The Mafia's. FozyAjay is the team's captain. The
team's total profits are $91, 879. The team has a net value of $49,692.
 The Fnatic (PUBG Mobile) team is made up of members from India and the
United Kingdom. Nimish "Nemo" Raut is the team's manager, and Wouter
Sleijffers is the team's CEO. The team has a net value of $24,384.

 TOP INTERNATIONAL TEAMS


 The Dallas Empire brought home $1.80 million in the main period of Activision
Blizzard's Call of Duty League. The group won $1.79 million in prize cash by
prevailing upon the Atlanta FaZe in the finals three guides to two. While single
occasions, as the Dota 2 International, are normal in esports, this is an
introduction that a solitary Call of Duty match has been the impetus for a group's
No. 1 rating.
 San Francisco Shock was a $1.56 million hit for Activision. During the pandemic,
Blizzard's capacity to keep their Overwatch League and Call of Duty League tasks
working was imperative in keeping the North American esports area significant.
By building up a system and moving to web competitions, NRG's umbrella groups
had the option to bring home a colossal amount of cash. The Overwatch League's
Season 3 bosses, the San Francisco Shock, won $1.55 million out of an all out
prize pool of $3.05 million throughout the customary season and end of the
season games. The Shock won most of the prize cash in the finals, overcoming
the Seoul Dynasty 4-2.
 Team Liquid: $1.46 million - Like Virtus.pro, Team Liquid's prize money in 2020
came primarily from CS:GO and Dota 2. Like G2, Liquid has diversified its team
portfolio and makes money from a variety of games. Consider the prize pool:
$414K for Team Liquid's Dota 2 team, $292K for CS:GO, $95K for Starcraft II, $83K
for Player Unknown's Battlegrounds, $81K for League of Legends, $75K for
Hearthstone, $64K for Fortnite, and $49K for Arena FPS. Because of its multi-title
strategy, Liquid has been able to maintain its elite rank in esports, earning more
than $9 million in prize money as the second biggest earner last year. Team Liquid
will make the most of its CS:GO opportunity.
 Virtus.pro ($1.37 million) – Virtus.pro competes in two of the most popular
esports, with CS:GO and Dota 2 teams bringing in the majority of the prize money
in 2020. However, the Russian esports team also competes in games such as
Fortnite and Apex Legends. Before the Dota competitions were discontinued,
Virtus.pro earned more than $472K in various tournaments, including the EPIC
League and the ESL One Los Angeles championship. The CS:GO squad of
Virtus.pro took home the majority of the prize money this year, bringing home a
total of $641K, including a $500K reward for winning Flashpoint Season 2.
Additionally, the team collected almost $25K from Fortnite and $4.6K from
Electronic Arts' Apex Legends.
 $1.36 million - Spacestation Gaming Spacestation Gaming, who finished fourth,
more than tripled its esports prize money from the previous year, which was
$436,000. The R6 team from Spacestation won two of the four competitions they
entered, earning $1.1 million in prize money. Spacestation, like G2, has teams
playing in a variety of esports titles, with prizes ranging from $5,000 to $10,000,
which has aided in the company's 2020 growth. R6 is a burgeoning esport that
has gained four new teams, bringing the total number of teams to 20 for the Six
Invitational 2021, which Spacestation will surely compete in.
 G2 Esports Carlos "ocelote" $1.23 Rodrguez' ability to construct strong teams
across multiple titles helped G2 Esports move to No. 6 this year. G2 features
teams playing in titles such as League of Legends, CS:GO, RainbowSix: Siege,
Valorant, Rocket League, Fortnite, and Sim Racing. G2 earned $383K in League of
Legends, more than $330K in Counter-Strike: Global Offensive, $163K in R6,
$159K in Rocket League, more than $100K in Valorant, and more in other games.
Rodriguez has survived the esports craze and diminishing prize pools by fielding a
large number of teams, some of which do not require a lot of overhead. If esports
returns to normalcy in 2022, G2 could be in line for a hefty pay-out.

Conclusion

Content, editorial, product development, brand value, and community management


are the core M&E operations that will move media companies forward. The remaining
processes can be transferred to shared services models, either at the level of a media
conglomerate or, through competitive cooperation, at the level of a sector.
• Across all client touchpoints, the IoT and personal consumption revolution will
generate a significant opportunity for automated decision making. Wearables,
interactivity, AI and machine learning, social media, location-based services, and
other technologies will be required of business executives. Gaming and esports are
becoming increasingly popular.
 During the outbreak, esports and video games will benefit from an increase in fan and
user numbers. Teams, leagues, athletes, and promoters turned to esports competitions
using popular video games and simulations of "real-life" events to keep spectators
engaged and fill airtime when sporting events were cancelled early in the crisis.
Virtual events ranging from auto racing and basketball to cycling and even
horseracing drew millions of viewers.
 In the meantime, income from video games have nearly doubled in the last five years.
The increase of in-game microtransactions and advertising, paired with new releases
from big and small publishers, is putting the industry on course for another record
year. The big gaming platforms will introduce new consoles in late 2020, fuelling
enthusiasm and demand well into 2021. Serious and casual gamers will be kept
interested by new cloud-based game streaming services, as well as improved mobile
experiences and virtuous feedback loops supplied by industry-focused social and
streaming media companies. Streamers and video providers will also benefit as a
result of this.
 Each of these themes emphasises the significance of industry leaders altering their
strategies in 2021 to account for unexpected market opportunities and threats.
Systemic flexibility is the only option to survive and thrive in extreme settings when
disruption is a continuous. As a result of the COVID-19 crisis, leaders in the media
and entertainment industries were compelled to activate transformation plans, cut
implementation deadlines, and experiment at breakneck speed.
 Companies that can manage a broad ecosystem of in-house talent and external
partners, and pivot rapidly and confidently, will be successful in 2021 and beyond.

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