Activision Blizzard, Inc., 2018

Abstract

Esports became increasingly present to the point that it is becoming normal and mainstream, this has a direct impact on viewership that is projected to grow 12% each until 2020. As the viewership grows, the revenues of the industry grow simultaneously. In 2016 the audience for esports was 323 million viewers and the revenues reaching $493 million, the revenues were forecasted to reach $696 million in 2017 with a viewership of 385 million people and the overall revenues are supposed to grow 26% until 2020. As the market matures, investors are more and more confident, as an example, 85% of the total value of the market comes from investors through sponsorships or investments. Video game companies like Activision Blizzard or Riot Games, try to support as best as they can their games that were launched in esports to make sure that the right ecosystem is in place to attract investors and allow this new industry to prosper. Pete Vlastelica, President and CEO of Major League Gaming, the esports division of Activision Blizzard that oversees the Overwatch League, the Call of Duty franchise and other esports interests of Activision Blizzard, received the first results of the Overwatch League, the new esports league launched by Activision Blizzard earlier in January 2018. The results were very encouraging and exceeded their expectation. He is expected to meet with the three new executives that were hired by the firm and that all came from the traditional sports business: Brandon Snow that was the former NBA senior VP/team marketing and business operations and that will become CRO, Daniel Cherry that was the former New Jersey Devils and Prudential Center Chief Marketing & Innovation officer and that would become the new CMO and Mac Kolin former NBC Universal VP Revenue analytics & strategy that would become VP finance & strategy. They will have to draft the esports strategy of the company and present it to the board and Activision Blizzard’s CEO, Bobby Kotick.

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