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Funding from venture capitalists has kept the company alive thus far but has yet to turn a distinct profit despite experiments with different revenue models. Mixes of pay-per-view, advertisement segments and sponsorships have not worked, so they are hoping to draw upon others' experience. These larger companies will definitely bring more weight to the credibility of gaming events and have deeper pockets to invest in events. This could increase popularity and viewers, and even make it possible to broadcast without pay-per-view, which limits audiences.
The main benefit of a deal with a broadcasting company such as CBS, and the area with the largest potential for E-SPORTS, is broadcast television. Concerning having events on television "there's definitely going to be an opportunity for us to be looked at by the broadcast network that is CBS on the traditional media side" said CEO of MLG Sundance DiGiovanni in an interview with Forbes. One of the great separations between E-SPORTS and more mainstream sports has been their availability on TV, as they were streamed exclusively on the internet in the U.S. Moving to broadcast television makes advertising much more attractive, allowing these events to grow.
Ultimately, the CBS partnership is a huge step for the credibility and recognition of the popularity of E-SPORTS. Bringing larger companies with long histories and powerful connections will serve to increase viewership and allow E-SPORTS to grow in the U.S. just as they have done in other countries, but that future is still far off.
Sam Lewando. More »