mtg invests in esl€¦ · viewership phenomenon with >200m ... growing community. image or...
TRANSCRIPT
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MTG invests in ESL
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• Industry• Meet ESL• Strategic rationale• Transaction highlights
and summary
#whatsnext
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• Organised competitive digital gaming
• Players and teams from all around the world gather to compete in popular game titles
• Big audiences watch the events both live and via live streaming from all over the world
Esports what?
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Image or colour fill goes on top of thisIt’s all aboutthe esports
• A spectator sport –live at stadiums & online
• Fan base estimated to grow to 260 million people all over the world in 2015
• Young and rapidly expanding industry with strong brands & growth potential
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8.2 million unique viewers watched the League of Legends World Championship Series finals!
Live through Twitch
58%of Twitch users spend more than
20 hours per week watching live streams
44%of occasional esports viewers
do not play esports titles themselves
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Gaming is one of the biggest digital video categories globally, and has almost 50% of YouTube views in
MTG’s countries
Gaming
Music
Comedy
Other
* Sweden, Norway, Denmark, The Baltics, Czech Republic and Bulgaria
Top YouTube content categories by views per month in MTG’s core markets
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Connecting with key demographics
Community Entertainment
It’s exciting
High level of gaming
I can find like-minded peopleLearn new strategies
It’s relaxing
Learn tacticsExperiencing it live
I like the atmosphereI like the competition
Cheering on my favourite gamers
Learn from professionals
It’s entertaining
It's fun
It’s interestingTeam spirit
I can compare myself
Following the emotions of players
Alternative to other sports
Alternative to TV
It’s just great
It's
my
hobb
y
Improve my skills
The actionIt’s free
I am a fan of my team
It is part of my lifeI like the commentators
The thrill
Escaping to another worldThe players are cool
I can
see
wha
t oth
ers
do
Curiosity
There is always something new going on
I don't have to play myself Observing the player's development
New techniques
Bet
ting
Contact with my favourite players
Iden
tifi
cati
on
The special feeling
Motivation for my own playing
Insp
irat
ion
Variety of content
It’s funny
It’s coolIt’s authentic
Innovation
New tips and tricks
I want to be up-to-date
Community allows me to learn for real life
I don’ have to play myself
People get a chance to be seen
I feel like belonging to the gaming scene
Viewers & players connect!It’s entertaining and fun!
Being part of a global community!You learn from the pros!
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Esports is a viewership
phenomenon with >200m viewers…
Enthusiasts per sport (millions)
Source: Newzoo
7694
147151
186
89
145
IceHockey
AmericanFootball
Volley-ball
eSportsenthu-siasts
Hand-ball
Swim-ming
20142017F
…already rivaling many traditional sports
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A growth industry
0
50
100
150
200
250
300
350
400
2012 2013 2014 2015e 2016e 2017e0
50
100
150
200
250
300
350
400
450
500
2012 2013 2014 2015e 2016e 2017e
Global esports audience (millions)
Global esports revenues(US$ millions)
Source: Newzoo
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• Industry• Meet ESL• Strategic rationale• Transaction
highlights and summary
#whatsnext
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Turtle Entertainment:
A clear #1 position in its markets
ESL is one of the world’s best known esports brands
Millions of passionate fans & a growing community
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• Founded in 2000 & HQ in Cologne, Germany
• 300 employees• 16,000 hours of content
broadcast in 2014 & over 70 million unique viewers reached in last 12 months
• Growth of 50% to EUR 50 million of revenues expected in 2015
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Turtle runs some of the world’s biggest esports brands spearheaded under the ESL and Intel Extreme Masters
brands
0
10
20
30
40
50
60
2012 2013 2014e
Mill
ion
hour
s
15%
10%
5%
4%
4%
4%4%
4%3%3%3%
41%
United States
Germany
Poland
Philippines
Sweden
United Kingdom
France
Canada
Russia
Brazil
Spain
Rest of world
ESL content consumed Geographical traffic breakdown
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ESL occupies a key part of the value chainGame studios Content producers & league
arrangers Distribution
VOD &MCN
Live linear
Live digital
Teams
Leagues
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Branded co-operationsPartnerships
Partnered with the industry’s strongest brands
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Run by a team of entrepreneurs with great industry experience & reputation
Ralf ReichertManaging DirectorRalf is a visionary leader who was a founder and player on one of the world’s premiere esports teams prior to co-founding Turtle Entertainment in 1999
Heinrich ZetlmayerManaging DirectorHeinrich is a proven leader with over 17 years of experience as a consultant and business services expert prior to joining Turtle in 2011. Heinrich has previously served as VP at ADL and as VP at IBM
Sebastian WeishaarSVP InternationalSebastian has been with the company for over 10 years and currently leads business development with all major game publishers as well as the international business of Turtle
Craig Levine, EVP Turtle AmericaCraig has worked with esports his entire career which started with him founding the esports team 3d in 2000 which later sold to Turner Sports 2006, later co-founded ESS agency as an agency in esports and the Counter-Strike community ESEA
Bernhard MogkManaging Director 4Media networksBernhard is co-founder and Managing Director of 4Media networks and has spent his career in the media sales industry, previously working at e.g. Sevenload GmbH (a Burda Digital company) and RTL
Nik AdamsSVP Sales & Business DevelopmentNik is a co-founder of the sales arm of Turtle, 4Media networks. Nik is a former pro gamer and commentator / analyst for esports
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• Industry• Meet ESL• Strategic rationale• Transaction
highlights and summary
#whatsnext
![Page 18: MTG invests in ESL€¦ · viewership phenomenon with >200m ... growing community. Image or colour fill goes on top of this ... Attracts an audience that watch limited linear TV 10-20](https://reader034.vdocument.in/reader034/viewer/2022042206/5ea897bc6216306480203f99/html5/thumbnails/18.jpg)
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Esports: a fast growing premium
entertainment segment with a
devoted fan base
Esports is a very exciting market• A n engaged and growing fan base • Gaming is already one of the largest
categories on YouTube• Esports market estimated to USD 260
million in 2015 with significant growth opportunities & plenty of room to grow revenues per fan
Great strategic fit • A passionate fan base and a true
spectator sport –just like football• Product offering and audience highly
complementary to MTG
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Attracts an audience that watch limited
linear TV10-20
21-35
21-35
36-65
36-65 10-20
Esports viewers by age and gender (Western markets)
15-24 year olds spend 65% of their viewing time online using video services…
…and they watched 20% less linear TV in 2014 than in 2012
Source: Newzoo
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The entertainment of choice for digital
natives
Average time spent watching esports per viewer
19 times per month
2.2 hours per session
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Image or colour fill goes on top of thisIn line with
MTG strategy
• In line with digital strategy to invest in growing and relevant digital businesses in key demographics
• Moving up the value chain with strong international IP & utilising expertise to expand product range & content offering
• Ability to lean on experience in monetising sports rights to drive ESL revenues & content utilisation
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• Opportunity to continue growing ESL as a global leader in in a very exciting market
• Attractive strategic fit with significant expansion potential
• EUR 78 m cash consideration for 74% shareholding in Turtle Entertainment
Transaction highlights
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More questions?Media enquiries:
Per LorentzT +46 8 562 025 00 | M +46 73 699 27 [email protected]
Media enquiries:
Per LorentzT +46 8 562 025 00 | M +46 73 699 27 [email protected]
Investor enquiries:
Stefan LyckeT +46 8 562 025 00 | M +46 73 699 27 [email protected]
Investor enquiries:
Stefan LyckeT +46 8 562 025 00 | M +46 73 699 27 [email protected]