Introduction
The recent growth of esports has been driven by several key stakeholders, each playing a decisive role in the sector's success. Game developers and publishers create and maintain the games, while teams and players bring these games to life through their skill and dedication. Tournament organizers provide arenas for players to showcase their talents, orchestrating events from local competitions to international championships. The sector is intensely driven by IP rights, crucial for controlling game distribution, protecting personal brands, and securing broadcasting deals and sponsorships.
The debate between sports and esports often centers on the roles and influence of these stakeholders. In sports, stakeholders such as teams, athletes, leagues and broadcasters have well-established roles and revenue models. In contrast, the esports sector is still defining and refining these revenue models, with a significant emphasis on IP rights and digital distribution. This ongoing evolution poses both challenges and opportunities for stakeholders in the esports sector, highlighting the unique dynamics that differentiate esports from sports.
Non-commercial stakeholders
Players are at the heart of the esports sector, serving as the primary talent and driving force behind its growth and popularity. They are the individuals who compete in video game competitions and leagues, displaying their talent and attracting audiences worldwide.
It is safe to say that players are indispensable to the esports sector, as they are among those responsible for its growth and success. They can achieve this through their performance, influence and community engagement. Their role in the esports sector is multifaceted. It is not only about their performance in competitions, but also about their influence on branding, marketing, and the involvement they achieve from their fan base, such as through social media. The sector of esports is evolving everyday, and with it, the importance and the contributions of the players will only increase, solidifying their position as key stakeholders.
Players are the individuals who showcase their video gameplay skills in esports competitions. They can range from amateur enthusiasts to professionals who compete at the highest levels.
Business relevance
Players are the core of the esports sector, as their performance and personalities drive viewership and fan engagement. Their influence affects branding, marketing and the overall popularity of esports. They are key in revenue streams for the sector, such as sponsorships, advertising deals and merchandise sales. Due to their popularity, some eventually become celebrities with strong social media engagement.
IP-related matters
Players usually combine and protect their image rights with brands and copyright that reflect their identity, image and likeness. Those would be key in securing revenues from their activity as players and any unique content they generate (such as streaming or social media content). If the IP policies of a concrete video game require it, they may also need to secure rights to use certain in-game assets or characters.
Team organizations are other pivotal stakeholders in the esports sector. They provide structure, support and a training environment for players and teams. These entities are responsible for assembling talent, managing player careers and fostering a sense of community and identity within the esports sector. Their role extends beyond competition, as they also work on other aspects, such as business management, marketing and fan engagement.
Furthermore, team organizations manage IP and branding with respect to, not only themselves, but also the players, and they also navigate complex contracts and agreements and address various challenges and disputes. One of the most important factors they need to consider to maintain their influence in the market are effective management and audience engagement.
Team organizations are entities that recruit and manage players or groups of players (teams) while also competing at competitions. They offer the infrastructure, support and resources required for players to compete at their best.
Business relevance
Team organizations have a very important role in the competitive landscape of esports. They handle business management, marketing and fan engagement, creating a sense of community and identity. The successful organizations are those that manage to attract sponsorships, media deals and a loyal fan base, which consequently contributes significantly to the sector's growth. They also manage and license, to some degree, the image and IP of their players after obtaining authorization to do so.
IP-related matters
Team organizations need to protect their brand, including logos, team names and any unique content they produce. Like players, they also need to secure rights for using game-related content in their marketing and promotional activities. One trend is teams negotiating naming rights with a main sponsor or brand, such as Dplus KIA, Shopify Rebellion or QuikTrip Pioneers Gaming.
Commercial stakeholders
Video game developers and publishers in the esports sector are key stakeholders responsible for creating, maintaining and bringing games to market, supporting competitive scenes, and driving the commercial success of competitive video games. While developers focus primarily on the technical aspects of game creation, such as designing gameplay, graphics and mechanics, publishers are responsible for distribution, marketing and monetization. However, the distinction between developers and publishers is often blurred. Developers may take on roles of self-publishing, distributing and marketing their own games, and publishers may develop games in-house or own subsidiaries responsible for game development. This trend reflects a strategic shift towards greater control over the creative and production processes, allowing them to protect and maximize the value of their IP.
Game developers are companies or individuals responsible for creating and maintaining video games, especially from the technical perspective. They design the gameplay, graphics and mechanics that form the foundation of esports competitions. Publishers are companies responsible for the commercialization of video games, including distribution, marketing and monetization. They can acquire games from developers by commissioning and financing their development in return for distribution rights and possibly partial or total ownership, or they can develop games in-house. Publishers work closely with game developers, teams and other stakeholders to bring games to market and advocate for the growth and sustainability of the esports sector.
Business relevance
Both developers and publishers play critical roles in the esports sector. Game developers are pivotal as they create and maintain (e.g., by balancing game mechanics) the games that players compete in. They work with publishers in the commercialization of the video game, who usually handle distribution and marketing. Publishers may also contribute by funding game development, managing marketing campaigns and organizing or authorizing the use of video games in large-scale events. They help build the game's brand and expand its reach to a global audience. Together, developers and publishers ensure that the games remain operational, engaging and commercially successful.
IP-related matters
Game developers hold the IP rights to the games they create, including copyrights, trademarks, and patents. Developers may license, commercialize and exploit video games directly or in partnership with publishers, sometimes retaining some or none of the IP rights over the video game. Publishers typically acquire the rights of all those involved in the creation of the video game and hold the exclusive distribution rights to the games they publish. Additionally, publishers usually bear the right to authorize the use of the IP of the video game so that third parties can make use of it (e.g., via EULAs, agreements with tournament organizers).
Tournament organizers are responsible for planning, executing, and managing esports events and competitions. They create competitive opportunities for players, engaging audiences and driving the overall growth of the esports sector. Collaboration between tournament organizers and other stakeholders is needed to deliver high-quality events that exhibit the best of competitive gameplay. Likewise, the organization of competitions is not always attributed to a third party, as sometimes the competitions are organized by the game developers and publishers themselves. For instance, Riot Games hosts the “League of Legends World Championship,” while Valve Corporation organizes “The International” for Dota 2.
Tournament organizers handle the logistical and operational aspects of these events, ensuring they run smoothly and attract large audiences. They also coordinate with teams and players to ensure their participation, manage schedules and provide necessary support to enhance the competitive experience Additionally, we note that some organizers operate on a 'white label' basis, meaning they handle the event logistics and planning but allow the event to be branded under the name of the hiring company.
Business relevance
Tournament organizers are necessary for creating competitive opportunities for players and engaging audiences. Their efforts help elevate the profile of esports and contribute to its mainstream appeal.
IP-related matters
Tournament organizers need to manage IP and licensing related to the events they host. This includes securing rights to use game content (generally from publishers), event branding and any promotional materials. They also need to navigate complex contracts and agreements with various stakeholders. Organizers must also obtain licenses from players and teams to use their likenesses, names and other personal IP in promotional materials and broadcasts. This is typically granted in player contracts or team agreements.
Sponsors and brands
Sponsors and brands have an important role in the esports sector, providing financial support, resources and promotional activities that drive the growth and visibility of esports in exchange for having their distinctive signs displayed and shown in events, competitions, or even games. Their involvement is critical to the economic viability and commercial success of esports events, teams and players.
Sponsors and brands are companies that provide financial support and resources to esports entities in exchange for marketing and promotional opportunities. They can range from gameplay-related companies to mainstream brands looking to tap into the esports audience.
Business relevance
Sponsors and brands are vital for the financial sustainability of the esports sector. Their investments help fund players, teams, events and content creation, enabling the growth and professionalization of the sector. They also bring legitimacy and mainstream recognition to the sector by associating their brands with the sector. The expansion of a fanbase community of esports is vital to attract more sponsors and brands to esports.
IP-related matters
Sponsors and brands need to secure rights to use the names, logos and likenesses of the teams, players and events they sponsor. They also need to protect their own IP rights when they are used in conjunction with esports marketing and promotional activities.
Additional stakeholders
In addition to the primary stakeholders discussed above, several other key players contribute significantly to the esports sector. These stakeholders include fans, content creators, online streaming and social platforms, retailers, service and telecommunications providers, and associations and trade organizations. Each of these groups plays a unique role in supporting and enhancing the esports sector.
Associations and trade organizations
Associations and trade organizations bring together and represent the interests of various stakeholders within the video games and esports industry. They advocate for policies and regulations that support the growth and sustainability of esports, design industry standards and guidelines, and offer resources and support to esports professionals. These organizations have considerable influence in shaping the future of the esports sector and ensuring its continued and sustained development.
Content creators
This category includes streamers, YouTubers and social media influencers, who take advantage of the large audience they attract to promote esports and engage with their community. They produce and share esports-related content, such as live streams, gameplay videos, tutorials and commentary. Professional players can also be content creators. It is the sense of community they create with their audience that increases the visibility and popularity of competitive video games and events.
Fans
Fans are the lifeblood of the esports sector as they bring the audience and community support that drive the popularity and commercial success of esports events, players and teams. Their engagement through live event attendance, online viewership and participation in fan communities helps to create vibrant and dynamic esports ecosystems. They also contribute economically to the sector’s revenue through the disbursement they make on ticket sales, merchandise purchases, crowdfunding efforts, membership schemes, donations and subscriptions to streaming services.
Governments
Some governments have drafted specific legislation to regulate or support the esports sector. In a handful of cases, this has involved the classification or recognition of esports as a sport, a controversial measure not generally supported by the video games industry, providing funding and resources for grassroots development, and implementing regulations to ensure fair play and protect the rights of players and other stakeholders. Government involvement can help to promote the growth of esports on a national and international level or sometimes has stunted the growth of the sector in a territory. For instance, some governments have opted for the creation of specific entities to regulate the esports sector, such as the Korean e-Sports Association (KESPA). In other cases, governments have focused their activity on facilitating conditions for esports, for example, by financing esports arenas and competitions while also deploying social programs to attract players and teams from underprivileged areas.
Online streaming and social platforms
Platforms such as Twitch, YouTube, and other social media and content distribution sites are the main channels for broadcasting esports events and facilitating community interaction. These platforms provide the infrastructure for live streaming, video on demand and social engagement. They have made esports more accessible, creating a space that allows fans to watch and discuss video gameplay and esports content from anywhere in the world, and this discussion leads to more interactivity among fans. The rapid growth that the esports sector has experienced can be partially attributed to the impact of social and content platforms. As esports attract bigger audiences, platforms sometimes enter into exclusivity agreements with players, teams and even competitions for their broadcasting rights.
Retailers
Retailers are involved in the sale of esports-related merchandise, including apparel, equipment, and other branded products. They increase the visibility and branding of esports teams and events through the commercialization of official team merchandise, gameplay peripherals, and other products that enhance the esports experience.
Service providers
Service providers encompass a wide range of companies that offer essential services to support esports events and operations, ensuring that esports competitions are professionally organized and accessible to a global audience. These include production companies, event management companies, equipment and hardware providers, IT and technical support, and software developers. While they are involved in the organization of the competitions, they cannot exploit the IP rights of the competition, for example by associating their brands with a video game, a competition, or a team, unless authorized to do so.
Telecommunications providers
Telecommunications providers play a critical role in the esports sector by providing the connectivity and network services needed for online gameplay and streaming. High-speed Internet and reliable network infrastructure are essential for competitive gameplay, live streaming and online interactions. Many competitions rely on dedicated infrastructure and, in exchange, sponsorship deals or tailored authorization to use the competition’s IP is negotiated. Without the contribution of telecommunications providers, it would be impossible for players and fans to participate in and enjoy esports without technical disruptions.
In summary, these additional stakeholders are important to the esports sector, each contributing in unique ways to the sector's growth and success. By recognizing and understanding the roles of fans, content creators, online streaming and social platforms, retailers, service providers, telecommunications providers, and associations and trade organizations, we can gain a more comprehensive view of the esports landscape and the various forces driving its evolution.
