The sports landscape is changing. E-sports like League of Legends have gained a lot of popularity with online viewers. But despite that popularity, the companies behind those games still haven’t been able to make a lot of money from streaming.
That’s about to change though — thanks in part to a more old-school sport. Riot Games, the company behind League of Legends, just agreed to a $300 million streaming deal with BAMTech, which is owned by Major League Baseball Advanced Media.
This deal means that people can soon view League of Legends streams on an app, either desktop or mobile. And BAMTech will have the exclusive rights to make money off of those streams. However, Riot Games says that fans will still be able to stream for free. The revenue will just come from ads and sponsorship.
Earlier this year, 43 million people watched the 2016 League of Legends World Championships. So there are a lot of people interested in streaming this particular esport. New media like online streaming has caused a lot of change in how companies operate. But one thing remains the same — you have to have a business model that allows you to actually bring in enough money to sustain your operations.
Without a Profitable Business Model, Promotion is Often Wasted
Small business owners can learn a lesson from this, too. Technology has made it easier to promote businesses than ever before. But a popular website, Facebook page or YouTube channel does not make a profitable business. It all comes down to a good old fashioned profitable business model that works.
Image: Riot Games