The following was compiled by Columbia student Kelly Carroll…
This post is another in a series from the Columbia University Sports Podcast, a 360-degree view of the sports business from the people leading it. Each podcast is approximately 35–45 minutes in length, and features industry insiders from all aspects of the business—from brand executives to startup founders to former MLB players—all talking about their work, the current state of the sports industry, and, more importantly, the future of the field.
In March, Joe Favorito and Tom Richardson spoke with Nathan Lindberg, director of eSports sales for Twitch, a highly used live streaming platform for the gaming community. Always a lover of video games, Lindberg never thought he could create a career from his passion. After graduating from Ithaca College with a degree in sports media, he took a circuitous route to the world of eSports, finding their extreme growth, multigenerational appeal, and ability to generate revenue to be important indicators of their future. With all the recent news about ESPN’s expansion in the space, Twitch’s new ventures and the upcoming world championships we felt it was worth a deeper look…
What’s this all about?: Lindberg landed at Twitch in 2015, but the company can trace its origin back to 2007, when co-founder Justin Kan launched a platform to broadcast his life in real time. Other users quickly joined. In 2011, an eSports-specific subsidiary was created, later morphing into Twitch as we know it today, a behemoth platform for gamers to broadcast their competitions, practices, and real-life video game experiences. Twitch sets itself apart with its interactive capabilities. Users can chat to their favorite gamers, asks them questions, and receive responses. “What’s the first thing you do when you turn on the TV?” Lindberg asks. “You lean back and you let the content come to you. With Twitch, you’re actually typing and communicating in this chat, actively participating on the same platform that you’re consuming.”
Knights vs. Jesters: Twitch’s appeal also comes from the inherent accessibility the platform creates. ESports pros, who Lindberg refers to as “knights,” broadcast their competitions, as well as their practices. “Jesters,” amateur players who aren’t necessarily any good, are the jokesters whose lighthearted gaming is fun for users to watch and interact with. “It’s one thing if you’re just sitting there watching practice happen,” say Lindberg. “It’s another thing if you can actually message Allen Iverson and say ‘hey man, why are you sitting on the bench?’” Twitch also gives aspiring eSport athletes a place to channel those aspirations: “If you were born 5’3”, you are likely not going to play in the NBA,” Lindberg explains. “You can go from Joe to pro as long as you’re dedicating yourself to hours and hours [of work].”
Team driven: In the traditional sports landscape, general interest is derived through specific games. According to Lindberg, eSports interest is team driven, meaning fans find the teams they want to cheer for and follow them across games. Multiple teams can be owned by one owner, as well, and compete across the vast eSports landscape. There are no regional, state, or local loyalties, as teams are not based on geographics. “You find the teams you cheer for by watching games you like to watch,” says Lindberg. “They will most likely have a sister team playing in another game.”
Fans across generations: Twitch’s core demographic is millennial males ages 18–34, but Lindberg insists this demo is growing drastically due to generational ties. People who were 10 or 11 when Nintendo came to the market, he says, are now in their 30s and 40s, with children of their own who play contemporary video games. “It’s an opportunity for mixed-generational enjoyment,” Lindberg adds. This growing audience with disposable income makes Twitch, and eSports in general, very attractive to brands looking to advertise and increase revenue. But brands beware: The Twitch fan base appreciates loyalty. Brands like Intel, Red Bull, Coca-Cola, and Geico have been in the space for years and/or have made meaningful partnerships that resonate with the average audience. “You’re not slapping on a 30-second Super Bowl spot and going ‘oh, I hope I get some revenue off that,’” says Lindberg. “You’re building a long-term relationship.”
Symbiotic approach: Another interesting aspect of Twitch is that revenue doesn’t just flow to advertisers. The gamers also receive a piece of the pie through broadcasted ads on their channels, sponsored broadcasts, sponsored clothing and product placement, subscription fees, and donations, or “tips.” Of the nearly 2 million broadcasters on Twitch, 2,000 of them are “partnered” and can share in the ad revenue on their channels. Fans loyal to certain users, knowing that revenue will trickle down to their chosen gamer, are happy to watch the broadcasted ads on that gamer’s channel—Twitch users have a 90 percent ad-completion rate. According to Lindberg, elite streamers can make as much as $200,000 a year. “My parents told me you can’t make a career in games,” he says. “We’ve been able to prove that you can, as an entertainment forum.”
ESports’ future: Though Twitch is a digital platform, Lindberg praises eSports’ expansion into the televised realm, saying TV broadcasts bring a level of legitimacy to eSports that would be difficult to achieve otherwise. Now under the auspices of Amazon, Twitch has the support to expand into a world that’s becoming more mainstream by the day. Lindberg says the company is looking to enter the game-publishing sphere, while also working to develop an eSports “season.” “If you have tournaments all the time, you don’t miss it,” he explains, noting that Twitch alone broadcasted 4,000 tournaments last year. “We need to create a regular season, playoffs, and an off-season.” Lindberg estimates eSports could be one of the country’s top five sports in 20–25 years. “We’re competing with sports that have been around for multiple generations,” he says.
These were just some of the topics Nathan Lindberg discussed with Joe and Tom. The entire podcast, number 11 in the series, can be heard here.
