The pandemic has changed the face of sports and entertainment in a way that has opened new opportunities that may have not been capitalized on prior. Some “pandemic era” industries may have run their course while others have evolved and become a more mainstream focus for consumers and investors alike.
Esports has actually seen a massive surge of interest and participation. This trend doesn’t appear to have any signs of slowing down right now either. That could mean an ideal time to take things seriously even during these early stages of the new industry.
Quietly, the writing may already be on the wall but Main Street hasn’t fully grasped the full opportunity (for now). This presents a potentially time-sensitive bull case to capitalize on the first stages of growth in this new arena.
Revenues from competitive gaming are set to be just shy of US$1.1 billion by the end of this year, according to market researcher Newzoo.*
Meanwhile, awareness of Esports continues to rise. There has been a flood of new interest in the industry since 2015. Just slightly more than 800,000 people had heard about it at that time. These numbers soon changed, right now, Newzoo finds that nearly 2 billion people are well aware of the industry itself with over 660 million making up the active live streaming audience.Esports Is Far Outpacing The Stock Market!
We can also look to stock market trends to see how retail investors have responded to the potential of this new sector. Take a look at the VanEck Esports ETF (ESPO).
Since the start of 2020, including the pandemic drop, it has climbed as much as 110% after hitting 2021 highs of $81.39. While many stocks rallied on the back of the reopening trade, Esports stocks have far outpaced the overall market AND the tech sector COMBINED! From January 2, 2020, to highs of $422.82 in May 2021, the S&P (SPY) “only” climbed 30%. Furthermore, the Tech Sector (XLK) “only” jumped 55% from the start of 2020 to highs of $143.77 in April 2021.
Does it surprise you that BIG INVESTORS are already clamoring for a share of this industry? While the likes Activision and Electronic Arts are scrambling for market share, pure play esports companies have already staked a claim in this emerging sector.Alpha Esports Tech Inc. (CSE:ALPA)(OTC:APETF) Is Trying to Position Itself To Disrupt the Billion Dollar Esports Industry
The 2021 debut of Alpha Esports Tech Inc. (CSE:ALPA)(OTC:APETF)implemented a multi-pronged approach that includes esports, mobile gaming, and ecommerce. Its portfolio is built on the backbone of revolutionary products like its GamerzArena, setting the stage for a new type of competitive experience.(CSE:ALPA) (OTC:APETF) Presents A Turn-Key Solution For Gaming
According to the company It has already partnered & worked with HUGE names in sports, entertainment, and education including:
The New Jersey Devils, The Vancouver Whitecaps, Barstool Sports, ESPN Radio, Devil Child, Oxygen Esports, Notre Dame, Syracuse University, Penn State, University of British Columbia, University of Rochester, Western Michigan University and others!
Virtually every college, university and professional sports team has its own gaming division. The problem right now is that most don’t understand how to unlock the potential of the industry. This is where Alpha Esports Tech Inc. (CSE:ALPA) (OTC:APETF) adds another layer of growth to its model.GamerzArena & Alpha Esports’ Competitive Advantage
The company’s platform is based on building an active community of dedicated gamers. Not only can they play and watch games alongside their peers. They can compete in tournaments to earn prizes through daily tournaments.
Where the real opportunity comes to light is the way Alpha Esports Tech Inc. (CSE:ALPA) (OTC:APETF) is monetizing its user base. The GamerzArena+ product is a subscription-based service that only costs $12.99. Members gain access to higher-paying tournaments along with the ability to access unique and special events.
GamersArena+ stores gameplay and statistical data on each of the participating gamers, allowing users the ability to monitor and improve their skills. There’s also a clear path for some to become professional gamers! Just like professional contact sports, GamersArena+ allows access for scouts from a number of universities and professional Esports teams to find raw talent from the company’s pool of premium gamers.
This is not just a company that’s hosting tournaments…unlike the vast majority of early esports companies in the stock market today, Alpha Esports Tech Inc. (CSE:ALPA) (OTC:APETF) is fostering a community and building a unique ecosystem that appeals to everyone from novice gamer to professional esports superstar.
With a current claimed active user base of over 100,000 gamers, Alpha Esports Tech Inc. (CSE:ALPA) (OTC:APETF) already appears to have a wide berth of talent to develop and bring into the next phase of professional gaming.Case Study: Barstool Sports
Devlin D’Zmura, Social Media Manager & Content Producer at Barstool said that GamerzArena “exceeded our expectations across the board. The level of personal and interactive content it provides us for our community is invaluable!”
GamerzArena hosted an exclusive Fortnite event for Barstool that helped them boost their Twitch following by 15%. Considering that Barstool Sports on Twitch has over 100,000. Followers, this was no small level of growth.
Over 9,000 entries and 6,500 reentries were recorded along with 2,700 unique users. One of the bigger value propositions offered was that the event itself created nearly 270 days’ worth of streaming content. That led to over 6 hours per week spent by each user engaging with the brand!Massive User Base Ushering In The Next Generation Of Esports Competitions
The company’s relationship with the Vancouver Whitecaps FC has now given exposure to Alpha Esports Tech Inc. (CSE:ALPA) (OTC:APETF)’s offerings and GamerzArena to 40,000 members of the Whitecaps youth development league. Aside from their eligibility to become GamerzArena+ members (at $12.99/ month per member), the partnership also presents Alpha Esports Tech Inc. (CSE:ALPA) (OTC:APETF) with sponsorship revenue, additional user acquisition, and future collaboration.
This will also establish a larger base for the company’s skill-based challenge events. Think “Esports” meets “Vegas”. We’re not only talking about competitive gamers but also the ability to wager on the outcomes of these challenge events. The larger the number of streaming competitions, the more opportunities for gamblers to wager.Building Partnerships With Premier Esports Teams
In 2021, Alpha Esports Tech Inc. (CSE:ALPA) (OTC:APETF) signed an Esports and marketing partnership with Centric Gaming, an Esports team, and roster with a combined over 150,000 followers on social media. Centric Gaming will both use and promote the Company’s online gaming platform, GamerzArena for a number of different activations and contests.
Centric Gaming (founded by NBA player Dion Waiters) and its Pro Esports players, which includes Kubx, Snagged, Rasko, marketing Alpha Esports Tech Inc. (CSE:ALPA) (OTC:APETF)‘s subscription service GamerzArena+. The two will also host a variety of Esports tournaments on GamerzArena, beginning with Fortnite tournaments, which will be also promoted on the Centric Gaming social channels.Data Already Presents A Multi-Million Dollar Opportunity
Alpha Esports Tech Inc. (CSE:ALPA) (OTC:APETF)’s data already estimates that 10-20% of GamerzArena freemium users will place head to head bets with an average bet size of $2-$10 per math per month. At the company’s 10% service fee, that could boil down to revenue of over $5 million just for this one vertical.* That’s assuming a $6 wager per month from just 15% of the company’s 500,000 user goal by the 4th quarter of 2021! The important part is that esports betting is set to grow exponentially and in the very near-term.
According to Market Insight Reports, the global esports betting market size is expected to gain market growth in the forecast period of 2020 to 2025, with a CAGR of 13.1%. From a revenue perspective, it’s expected to reach $13.05 billion by 2025! While this may seem like a larger than life opportunity, industry comparables already support the potential for rapid growth in esports companies.
Also keep in mind that this isn’t just about the desktop either. The company’s acquisition of Paradise City Gaming puts them in a position to capitalize on the growing body of casual and pro gamers on mobile platforms as well.
Alpha Esports Tech Inc. (CSE:ALPA) (OTC:APETF) aims to leverage Paradise City Gaming and its library of mobile games to grow its user-base through hosting skill-based contests, head-to-head betting and charging entry fees for tournaments. There are also key relationships with influential people including Jamie Foxx, which also opens the door to secure IP gaming rights to his films including Groove.
Just to give you an example, Skillz, a mobile game platform has shown the potential that mobile has in the esports world. The company saw its player growth increase from 9 million users to 18 million users in 2 years from 2016 to 2018. Now, its user-base is pushing 30 million+! Furthermore, first quarter revenue hit $84 Million in 2021, Up 92% Year-over-Year. It also raised guidance to over $370 million in revenue for the year.
With a growing pool of gamers searching for ways to not only monetize their gaming but also learn to become pro players, Alpha Esports Tech Inc. (CSE:ALPA) (OTC:APETF) is building more than just another platform. Its mobile opportunity paired with its skill development platform could define the next generation in the esports industry.