April 12, 2012

kljustice asked: Ryan, do you think that before big name companies start sponsoring players the FGC should clean up its act a little bit. For instance, in Action Sports-Shawn White may be sponsored by Mountain Dew, but can't that hurt MD if they found out that Shawn was involved in the FGC and was around the uncensored crowd or someone sponsored by Brazzers? The FGC at this point 'got no rules.' Don't you think that major companies fear that? That there is no standard for actions or language at events?

First off, I should say that I’m not Ryan :P I think you might be referring to Gootecks, who follows me and retweets my articles, but I am not him. With that aside, you raise a good question. Anything that the FGC can do to clean up it’s act will definitely help to gain sponsors. You are absolutely right in that respect. The big thing to note, though, is that just as much vulgarity and adult discussion takes place in the majority of major sports. Baseball, basketball, soccer, football, all of them have a TON of bad language and bad intentions thrown around, but we don’t USUALLY hear about it. When we do, the leagues call it an isolated circumstance, when in fact, it’s non-stop. I only played professional baseball for a few years, but woooooow, lemme tell ya, I heard more F-bombs in 5 minutes in the dugout than hours upon hours at FGC events. This is all due to good selective broadcasting by television networks. They do a wonderful job of keeping sports PG when they are really rated R. 

I believe that this same level of selective broadcasting can be achieved by the FGC. It falls to the people who are responsible for streaming. Everyone actually at the event would be able to hear the riotous FGC crowds that we know and love in all their glory, but on the stream, the casters/announcers would keep the vulgarity in check. And this is not to say that streams should lose any of their hype, just some of the vulgarity. Chatrooms for stream monsters could be hosted away from the main stream site to allow for people to discuss all the crazy matchups without bringing any vulgarity to the actual streams, the same way that mainstream sports fans take to message boards to discuss their favorite sports.

There are definitely things that can be done to clean up the FGC’s reputation without ruining ANY of the hype or famous trash-talk. We can still maintain the down and dirty hype we always have, while showing the public and the sponsors a clean face on streams.

April 11, 2012
Why the Brazzers Sponsorship Should Excite Everyone, Including Soccer Moms

During a slow day at work today, I was mulling over LIJoe’s meteoric rise to sponsorship stardom, trying to put together a concise explanation as to why I am so excited, and why everyone else should be too. Yes, this even includes those people who may view the involvement of a porn company as a stark negative.

In short, LIJoe’s sponsorship in and of itself isn’t that important. Don’t get me wrong, I absolutely adore the guy, no homo, and I’m excited as hell for him, but Brazzers’ involvement isn’t nearly as important as what their involvement signifies: the FGC being taken seriously as a marketing opportunity. To be frank, the fact that a porn company was the first to come to this realization is…..unfortunate. Coming on the heels of the Cross Assault fiasco, those on the outside looking in were all too eager to point fingers, labeling the community as immature, vulgar, or tactless. And even though, as I explained in my last post, these accusations are baseless and unfair, critics will be critics, and are best ignored. 

That being said, I’m beyond excited about Brazzers’ involvement. Come to think of it, it’s ironically fitting that a porn company would be the trailblazer in large-scale non-gaming-related FGC sponsorship. Much like the FGC, the porn industry is misunderstood, often-criticized, and yet undeniably powerful. While the masses sit atop their high horses, tossing insults and rhetoric about family values like Daigo lobs plasma, men like Rob Steele cash checks. Say what you will about the industry he works in and the company he keeps (which is no more morally bankrupt than Big Oil, Tobacco, Alcohol, or half the firms here on Wall Street, by the way), but the man knows a good investment when he sees one. The rabid and passionate fan base of the FGC fits that bill to a T. And as I said before, Brazzers can market their product the same way any other corporation can: tags and tshirts. Tried, true, and nudity-free. 

But what I’m really getting at here is the capacity for other firms to get involved. Mr. Steele recognized the marketing potential for his product within our demographic, and MANY other firms can do the same. I feel as though this fact is being overlooked. I’ll list just a few of the industries that could be every bit as well-served by targeting/sponsoring our demographic as Brazzers: ISPs, Food/Snacks/Energy Drinks, Gaming-related Hardware Companies (adapters, monitors, recording/streaming), big brand apparel, web hosting, and so on and so forth.

Not enough people are aware of the snowball effect that can happen with regards to corporate sponsorship. You may think it ridiculous, but I’ve seen it happen in other arenas, and it could just as easily happen within the FGC. All it takes is one large corporation showing interest (yes, even if it’s a porn company), and many more can follow suit. I’d go so far as to urge anyone who’s anyone within the scene to spread the word and to try to garner as much interest as possible. Now that Joe has tipped the first domino, you might be surprised to see how quickly the rest can fall.

April 3, 2012
Brazzers, LI Joe, the FGC, and Ham Sandwiches

There has been a storm brewing the last couple days, and I’d like to address it with a repost of something I posted over on a hypocritical Kotaku article. I believe LI Joe and Brazzers have both been unfairly vilified. This type of uproar is seen all too often this day in age, and honestly, people need to sit back and see how things develop before making blanket judgment calls.

I simply cannot understand how people just completely ignore the capacity with which companies can be involved in sponsorship. Yeah, if there are pornstars walking around FGC events, that’s over the top and inappropriate for most venues. But is someone like LIJoe wearing a Brazzers shirt to an event inappropriate? And is it any worse than an endorsement from an alcohol or cigarette company? I’ve heard people say that it is in fact worse, whereas I believe it to be exactly the same. Like it or not, pornography exists, and as long as the sponsorship is done tastefully (a shirt with a nondescript logo, and a tag before the player’s name), there just isn’t anything inappropriate about it.

I work in Finance, and if I’m being completely honest, there are ‘big oil’ companies with a financial stake in my firm. Ones that you’ve heard of. Ones that are universally despised. I may not “like” it, per se, but as long as they aren’t dumping dead marine life in our lobby, nobody in the general public cares nor raises issue with the fact that they’re involved, even though it’s common knowledge that they are. Regardless of how the idea of Brazzers being involved makes you feel, if they keep it low key, there is no reason to raise issue.

And that’s to say nothing of the fact that the real story here is that an event coordinator from a prominent company with little to no experience in gaming spoke to a few people, saw a few videos, and was enamored with the scene. This could easily be replicated by other, more “reputable” backers. Just because the first big sponsor to come out of the woodwork happens to be a porn company should not reflect negatively on the community. If you listened to what was said as to why Mr. Steele found the FGC attractive, you’d realize that the traits he realized were in no way pornography-specific, and they would excite any sponsor to the same degree, if they took the time to look.

Relax, people. The story is just beginning to unfold. Wait a few weeks before you jump down the throat of someone who has always tried to do right by the community.

LI Joe always has the FGC’s best interests at heart

January 11, 2012
Brovietalk: The Evolution of Esports

At present, you can reach me only at BrovietTumblr@gmail.com or Broviet on twitter. I’m not currently at liberty to discuss the situation from a numbers standpoint in an official respect just yet, but I anticipate a public announcement in the next 4-5 months max, at which point I could give out my firm contact information to discuss everything further. But I’m sure I could try to answer any general questions you might have that don’t pertain directly to this specific project.

dnamhsra:

Anyway to contact you brovietalk? I have done some initial market research and just wanted to get your thoughts on some ideas.

brovietalk:

It has become abundantly clear in recent months, especially to those of us working in Venture Capital, that esports are here to stay. The communities surrounding each respective game are passionate and dedicated on a level comparable to that of any conventional professional sport, but there is a…

January 9, 2012
The Evolution of Esports

It has become abundantly clear in recent months, especially to those of us working in Venture Capital, that esports are here to stay. The communities surrounding each respective game are passionate and dedicated on a level comparable to that of any conventional professional sport, but there is a differentiating factor that isn’t seen elsewhere, at least not very often: personal connection to the games involved. Most people have a group of sports teams they root for, usually influenced by their current location, where they grew up, family preferences, etc., but often the emotional connections begin and end there. Other than a select few former college/professional athletes who have a stronger connection and appreciation for their sport, there is little vested interest. Most view casually and intermittently. I just so happen to be one of those former professionals. My connection to and love for baseball started in little league, and continued all the way through a few years in the minor leagues, before I finally had to hang up the spikes. As a result, I have this close emotional connection to the game, not just to one particular team (although I do love my Cincinnati Reds), but to the sport in general. I’m entranced by any ballgame that’s on, not just the ones for my favorite team. I constantly analyze the strengths and weaknesses of each individual player, lineups, management decisions, etc. I love all sports, but while my interest in others may wax and wane, my love for baseball keeps me constantly involved…

This is a characteristic that ALL fans of esports have. Esports fans are not just enthusiasts. They are former players. They have all been in the situations they are witnessing when watching games. They have felt what those pros are feeling. Their childhood experiences are playing out in front of their very eyes. It is this connection that presents such potential for esports as a whole, and it’s what has all of us in Venture Capital so excited. I dedicated 20 years of my life to baseball, and I dedicated a great deal of my leisure time to gaming pursuits. I get the exact same feeling when I watch a World Series game as I do a GSL Code S Starcraft Final or a Evo Street Fighter Final. Esports are not just casual viewing experiences for fans. They are a reflection of our childhoods and lives.

That being said, I’m sure many are wondering what kind of investing they can expect to see on the horizon, so I thought I’d give a brief rundown. A few weeks back, I made some calls to contacts around the VC industry to see if I could get an idea. I knew our firm was interested, but who else was? What kind of numbers could we expect to see? Here is some of the information I was able to garner:

There are currently between 15 and 20 unique VC firms that are looking to invest 15-30 million apiece. The investor approval rating for an esports capital infusion is 70%+ overall, even higher for ages 20-40. The institutional investors I spoke to are considering it safe investment, and anticipate a high short-term rate of return. What can we glean from these numbers? Esports has an atypically high approval rating among potential investors, especially among those young enough to have witnessed their development firsthand. Even institutional investors have been considering the potential for growth, and are also projecting a very low chance of the investment failing to return. This speaks volumes for the stability and rabid interest of the esports community.

Now I’m sure many are wondering how such a huge capital investment would affect their communities, and whether there are any negative connotations that arise from corporate involvement. Just a few weeks ago I saw an episode of Cross Counter TV that focused extensively on this particular topic. One of the hosts of CCTV, Gootecks, made some astute observations, and was largely of the opinion that new money would be a benefit to his particular community, that of fighting games. This is not a view that many in his community share, especially the small-market purists who think too much corporate sponsorship will cause the community to lose it’s sense of closeness and familial ties. Now, while I understand their concerns, I tend to agree with Gootecks (who has an uncommon knack for analyzing the macro aspect of esports, and to see the big picture). To explain why, it’s important to outline where the majority of this new capital will be going:

The largest problem facing esports as a whole, and one that conventional sports do not typically have (due to network telecasts), is that of availability. While many of us have great internet connections and the money to pay for premium streams to support events, a huge amount of the gamer population does not, especially internationally. Consider these numbers from a recent MLG event:

“MLG reported a total of 3.6 million hours of video consumed over the course of the tournament, with peak viewership of 240,000 users watching at the same time. And those viewers were totally engrossed in the gameplay: Average viewing time was north of three hours per viewer, according to MLG. Videos were streamed to viewers in more than 175 different countries, with the US, Germany, Canada, Sweden, and the UK leading the way. To put that into perspective: When CBS Sports live streamed the matchup between No. 1 and No. 2 ranked NCAA football teams LSU and Alabama earlier this season, it reported just 214,560 unique viewers during the game.”

Huge numbers, sure, but just a fraction of the total number of potential viewers. And while there is nothing that can be done to improve the personal ISPs that each gamer utilizes, there is a ton of work to be done in the area of stream quality, vod quality, and infrastructure quality between the stream provider and the potential customer. Even among those of us with great connections, living in the same country as the stream provider, stream errors/slowdowns/lag are noticeable and irritating. There are vast improvements that can be made, and all are costly, with little immediate revenue gain for the stream provider. These are improvements that we can fund in the short-term, increasing stream quality and availability for all fans, and giving the stream providers long-term revenue increases and viewership growth. Even MLG, with 10m of VC money under their belts (http://www.venturecapitalupdate.com/company/12/26/major-league-gaming.html), can only do so much. Imagine how difficult it must be for the little guy. This is where we can help, and it does little to disturb the familial ties that all esport communities have.

Then, of course, there is the issue of prize pools and the creation of new tournaments. This seems to be the great divider as far as the pro vs con of esports investment is concerned. Many believe that larger tournaments being created with prize pools upwards of $100k for first will take away from the smaller tournaments, and create a schism within these respective communities. Let me try to alleviate some concerns right off the bat by saying that the intended targets for any new prize money will be existing tournaments. If it is determined that there are times when additional tournaments (such as east coast or central majors) would thrive, then of course they’ll be considered, but nothing would make us happier than to see tournaments like Evo or NASL sporting 100k+ for first. The intention is to keep professional players hungry, happy, and competitive, not to take away from the grass-roots feel of the communities.

Additionally, there is talk of capital going towards esport-related ventures outside the tournament scene. The same way that the general public likes to listen to sports radio and watch ESPN/CBSSports/etc, the gaming population loves to get their fix at places like Day9tv, CrossCounterTV, State of the Game, and many others. It is just as important to have knowledgeable and likable personalities discussing and commentating as it is to have players playing, and helping these people do what they do best is another avenue we are exploring. 

I sincerely hope that this has helped to inform you guys as to what’s on the horizon for esports, and to alleviate some concerns that you may have. At the end of the day, we view esports much the same way as we did the tech industry in the past. And while many people may ask “what about the bust at the end of the boom?”, it’s important to note that an industry getting ahead of itself does not mean that the said industry is a fad. Esports are here to stay, and whether or not investment capital gets ahead of potential for growth, the communities you know and love aren’t going anywhere. It’s a chance that we’re willing to take, but the risk won’t be shared. Evo will always be Evo. MLG will always be MLG. GSL will always be GSL. Just sit back and enjoy the ride.

http://www.ibtimes.com/articles/274997/20120101/2011-year-esports-starcraft-2.htm

December 20, 2011
Coming Soon: The Evolution of Esports

I’ll be working on an article this week, should be posted by this weekend. I’ve heard a lot of chatter recently about how firms such as mine are starting to get more involved in esports, and there seem to be many conflicting opinions on whether this is a good or bad thing. I’ll be discussing what outside funding would entail, how it would change esports, and most notably, why it’s not a bad thing. Look for it later this week.

December 19, 2011
What is Brovietalk about?

In all honesty, I’m still fleshing out the answer to this question myself, because there’s so much that needs to be mulled over, but I suppose I’ll give a brief background as to who I am, where I come from, and what I’m interested in:

I am a graduate of Johns Hopkins University, where I majored in Political Science and Economics, and a current analyst for a prominent Venture Capital firm in New York City. For as long as I can remember, I’ve been an avid video game player and tech-head. A while back, I was told by a number of my friends, after offering them insight into how my industry viewed emerging technology and gaming, to start a blog about it. Many people might be surprised to hear how much is being done in an effort to evolve these fields, so I decided to take their advice and create a source not just for gaming and tech news, but also how Finance can help these industries grow, and what steps are currently being taken to do so.

Feel free to tell everyone you know to drop by and ask questions, and I’ll do my best to use my resources and contacts to get them answered. Much more info, discussion, and hopefully some interviews to come in the coming months.

December 19, 2011
Brovietalk is now live!

Brovietalk is now live!

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