E-sports and the Road to the Olympics

Licenses: The Biggest Challenge

Although the IOC has recognized the existence and development of esports, their path to becoming a category remains rocky. One crucial issue is licensing.

In the case of esports, each game is owned by a specific licensee. Paul Bellezza, head of Riot's Vakirant program and a professor at USC, explains how Riot is changing its licensed product strategy. "Riot's consumer product strategy has been focused on our direct business," Bellezza says. "We sell things through our channels, and we develop them internally. They're designed at Riot, we contract with manufacturers, sell directly to our players, and that's always been how we've run our gaming business. However, it comes at a cost because currently, the only way you can get our products is through our channels."

Nike and China League of Legends professional league reached cooperation, exclusive supply of peripherals/Source:@LPL Official

The IOC does not have to ask the NBA or individual teams for permission for athletes to participate in Olympic basketball. For esports, the IOC must agree with each game owner (such as Epic Games or Riot Games) to hold the games during the Olympics.

"Independent esports tournaments need help to obtain licenses for many games simultaneously. The best chance for the Olympics may be to hold one match at a time so that the IOC can negotiate licensing terms more easily,” said Jennifer Donahoe, head of publishing and marketing at HiDef. "Esports events tend to be limited to combining several different games. "

But reaching a one-time agreement won't eliminate licensing issues for future Olympics. While basketball and other traditional sports have changed little over the years, the most popular video games today were not the same as the most popular games four years ago. The IOC must constantly be aware of the hottest games to attract viewers and players.

"This will become an ongoing licensing issue," Bellezza said. "The IOC continually works out new agreements with the popular games of the day. In addition to the fact that different licensees own many esports, the IOC must constantly update or modify the popularity of the games being played."

Violence: Esports Against the Olympic Spirit?

In January 2018, IOC President Thomas Bach overshadowed the Olympic future of esports in an interview with the Associated Press. "We cannot have a competition in the Olympic program that promotes violence or discrimination. From our point of view, the so-called killer games contradict Olympic values and therefore cannot be accepted," he told reporter Stephen Wade. At the time, esports had just become a showpiece event at the Asian Games in Jakarta and looking forward to going further at the Asian Games in Hangzhou four years later.

French President Macron and President Bach have different views.In June 2022, he received the influencer of the eSports industry at the Elysee Palace. In a press conference afterward, he expressed his support for eSports: "In this respect, we have a historic opportunity: the 2024 Olympic Games." It will open in Paris, France, in 2024. "It is up to us to take full advantage to establish a link between the two worlds' Olympiads by hosting the world's greatest esports events: CS: GO Majors, Worlds of League of Legends, and The International of Dota 2."

The Olympic Council of Asia (OCA) announced in 2021 that esports would debut at the 2022 Asian Games, where medals will be awarded in eight games. The top three in each category will offer a gold, silver, and bronze medal, which means 24 medals can be won in esports at the upcoming intercontinental event in Hangzhou, China, in 2022.

Naz Aletaha, global head of League of Legends esports at Riot Games, pushed for esports to enter the 2024 Paris Olympics in 2021. "The process of League of Legends becoming an Olympic sport could be a long one, especially because it will involve the recognition of esports as a whole by the International Olympic Committee," he said in a statement.

In April 2021, the IOC announced that it would organize an esports event before the postponed pandemic 2020 Summer Olympics in Tokyo. The Olympic Virtual Series (OVS) will include racing, baseball, cycling, rowing, and sailing events. "The OVS is an exciting step forward for the world of virtual sports and the Olympic Movement," said David Lappartient, an IOC official, in a statement. Meanwhile, the IOC said in its announcement that OVS "supports the further establishment of virtual and simulated forms of sport as a discipline within its rules and strategy."

Who needs who?

The issue of violence aside, The IOC is faced with another dilemma. The Olympic audience is aging, and the competition for young eyeballs is more intense than ever. The event's appeal is slipping.

"The Olympics need esports, not esports need the Olympics," said Rod Breslau, an expert on the video game Overwatch. Overwatch hosted the World Cup in 2019.Ten national teams, selected from 27 countries after a lengthy qualifying round, competed in a two-day tournament at the Anaheim Convention Center. which became the first esports event to feature a national team.

Team USA won the Overwatch World Cup 2019 Sources:Overwatch League

This year, esports will have 261 million super fans and 271 million general viewers worldwide. Super fans mean watching more than three gaming matches weekly, while general viewers mean watching at least one game weekly. according to an April 2022 report from Newzoo. By 2025, the total audience could grow to 640 million. According to a 2021 report by GlobalWebIndex, most esports fans are young, male, and affluent, accounting for three-quarters of the audience among 18- and 34-year-olds. In the U.S., an estimated 84 million people will watch esports this year, according to Activate, which would surpass all professional sports leagues except the NFL.

"From an esports perspective, what we have is already very well developed and already represents the pinnacle; we don't need to be on TV or win gold medals," said Chinese League of Legends commentator Qian "Miller" Chen, who participated in eight League of Legends Finals as an official commentator. "What we already have includes big tournaments, prize pools, etc. At least for me, the system is good enough that we don't need the Olympics to prove ourselves."

While esports viewership is rising, interest in the Olympics is declining. Though influenced by the pandemic, this year's opening ceremony in Tokyo drew just 16.7 million viewers in the U.S., the lowest number in 33 years. Nightly ratings stayed at that level. "NBC's Summer Olympics ratings are in freefall," CNN declared.

Olympic viewers will primarily benefit from the excitement that esports brings to younger viewers. "The IOC ...a needs to adjust and adapt to the modern era and cater to a contemporary audience," said Joost van Dreunen, an esports investor and consultant. "Tastes have changed."

Twitch: The Rise of Streaming Platform

Twitch has become a powerful platform for live video game streaming, with most esports competitions broadcast on the site. Fans are used to watching the content they want for free while chatting and interacting in real-time with the streams they are watching.

Bocheng A/Annenberg Media

In the U.S., NBC is the exclusive broadcast partner for the Olympic Games. and unless someone connects an antenna to their TV, they may pay for cable or the network's new Peacock streaming service to watch the games.

“If the Olympics will add esports, there needs to be a way to ensure the Games don't alienate fans who are used to watching esports on Twitch or YouTube.” Rod Breslau said. “Olympic athletes not interacting with fans during the games would take away a crucial part of esports. “Ultimately, the glamor of the Olympic Games may outweigh the potential adverse effects for gamers. For the IOC, these new eyeballs could ensure that the Olympics retain their status for decades.

Despite the popularity of e-sports among young people, now is not the best time for e-sports to enter the Olympics.“I would love for our athletes to join the Olympics and compete for higher honors," said Team Liquid CEO, a North American esports club, in a statement on email. The virtual Olympics represent a first step for the IOC, and perhaps more esports athletes will soon fight for their country's glory on the field.