Analysis of eSports as a commercial activity

Author:

Lokhman Natalia1,Karashchuk Oksana2,Kornilova Olena3

Affiliation:

1. Ph. D. (Economics), Associate Professor of Department of Entrepreneurship and Commerce, Donetsk National University of Economics and Trade named after Mykhailo Tugan- Baranovsky

2. Candidate of Economic Sciences, Associate Professor of the Department of Trade Policy, Plekhanov Russian University of Economics

3. Ph. D. (Economics), Associate Professor of Department of Human Resource Management and Business Economics

Abstract

The article deals with eSports as a perspective kind of commercial activity. The research urgency is determined by the fact that, given the active increase of eSports market with growth rates of more than 30% per year, the types of commercial activities in this field and in scientific papers are not studied in an adequate degree. The purpose of the article is to evaluate the commercial activity development in eSports and to determine the perspectives for its further growth in Ukraine. In order to determine the key types of commercial activity in eSports, the main sources of revenue in this area compared to sports were investigated, which showed a large unrealized potential for increasing revenues from the sale of tickets to competitions, the realization of broadcasting rights and merchandising. The study also showed that the largest number of income sources in eSports is at the stage of cyber-tournaments, which can be explained by a large consumer audience at this stage. However, unlike the esports world practice, computer game producers and well-known manufacturers of consumer goods in Ukraine do not finance domestic competitions, and, therefore, this stage of commercial activity remains at a low level. In modern conditions, among the types of eSports activities in Ukraine, only the computer games production and the cyber-racers game are properly developed. According to authors, to improve the eSports development in Ukraine, creating the national system of regular eSports competitions is needed, which will form the basis for the development of most types of commercial activities that are part of the cyber-tournaments. To do this, one needs to create appropriate platforms, as well as improve communications with fans in social networks and at amateur competitions. All this will make eSports a highly profitable business in Ukraine.

Publisher

LLC CPC Business Perspectives

Subject

Strategy and Management,Business and International Management,General Business, Management and Accounting,Information Systems and Management,Law,Sociology and Political Science,Public Administration

Reference21 articles.

1. 2016 eSports Market Report. - https://superdata-research.myshopify.com/products/spring-2016-esports-market-report

2. Heere, B. (2017). Embracing the sportification of society: Defining e-sports through a polymorphic view on sport. Sport Management Review, 18. - http://www.sciencedirect.com/science/article/pii/S144135231730061X

3. Daniel C. Funk, Anthony D. Pizzo, Bradley J. Baker (2017). eSport management: Embracing eSport education and research opportunities. Sport Management Review, 23. - http://www.sciencedirect.com/science/article/pii/S1441352317300670

4. eSports revenues for 2016 adjusted upward to $493m. - https://newzoo.com/insights/articles/esports-revenues-2016-adjusted-upward-493m/

5. Kirstin Hallmann, Thomas Giel (2017). Esports – competitive sports or recreational activity? Sport management review, 31. - doi.org/10.1016/j.smr.2017.07.011

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