How a YouTuber is changing Esports 👇
In 2021, Ludwig became the most subscribed Twitch streamer of all time, a record previously held by popular streamer Ninja. He live-streamed continuously for an entire month, reaching a peak of over 282,000 active subscribers.He made headlines again later that year in 2021 by signing an estimated $30M exclusivity deal with YouTube. The switch was made for multiple reasons, one of which was the increased flexibility in pursuing events & projects with the help of YouTube.Since signing 14 months ago, Ludwig has:
Hosted the Subathon 2.0, raising $300,000+ for charity.
Hosted Ludwig Smash Invitational, the biggest Super Smash Bros event of all time.
Hosted Mogul Chessboxing Championship, peaking at 317,000 live viewers.
Hosted The Scuffed World Tour after Nintendo's controversial cancellation of the 2022 Smash World Tour Championships.
Hosted Mogul Money Live, a game show, peaking at 149,000 live viewers.
Hosted the Ludwig x Tarik Invitational; a Valorant tournament, peaking at 173,000 live viewers.
Started OFFBRAND, a creative agency that assists creators with all aspects of event planning, production, and funding.
Mogul Mail Live @ YouTube Theater
What's his next move?
In a recent announcement, Ludwig joined forces with Moist Esports as a co-owner, highlighting the financial struggles many esports organizations face and their reliance on venture capital funding.
Despite their growing popularity and viewership, Esports teams have struggled to become profitable due to various factors:❌ Esports events are typically streamed on free platforms like Twitch, making it difficult for teams to generate revenue through traditional means like television deals. ❌ Many teams rely on the financial support of wealthy individuals or venture capitalists, as conventional investors and sponsors have yet to embrace the esports industry fully. ❌ The high costs associated with running an esports team, such as player salaries and tournament expenses, make it increasingly difficult to profit. Add on top of that a looming recession, and it's nearly impossible to be profitable. This further causes investors to be more hesitant to put money into a business that has yet to generate significant returns.
Just look at FaZe clan 👇
FaZe Clan ($FAZE) stock chart
One of the biggest Esports organizations ever. They went public in July 2022 and have seen their stock drop about 95% since September 2022. Despite respectable revenue growth, they have incurred significant losses and a net loss of $130.6M in Q3 2022.Another huge organization, 100 Thieves, backed by Drake, Scooter Braun, and Cleveland Cavaliers owner Dan Gilbert, reportedly just laid off an estimated 1/6th of their staff.
HOT TAKE:
90% of Esports orgs pay a premium to sign content creators then do nothing to capitalize on the value they bring
If this keeps up, many Esports orgs are going to go under in the coming years
— Keeoh (@Keeoh)
Jan 27, 2023
@Keeoh Content creators are often times a better spend than tier 1 esport teams
— ludwig (@LudwigAhgren)
Jan 27, 2023
His Plans 🚀
In Ludwig's announcement video, he suggested potential sustainable solutions for creator-backed organizations to become profitable:✅ Leveraging his personal brand: Ludwig has the unique opportunity to package sponsorships with his personal brand to increase profitability for the organization. By packaging sponsorships with his Esports team, sponsors can reach a larger audience and receive more value for their investment.✅ Creating products: According to Ludwig, this approach offers even more potential for growth and scalability than simply partnering with existing brands. By creating their own product and using the Esports team as a marketing tool, they can leverage their following to promote and sell the product to a larger audience.
"You can really imagine things like PRIME (by KSI and Logan Paul) and Feastables (by Mr. Beast) being multi-billion dollar companies in the next five years. So why couldn't the same thing happen if a creator made a product and then use their Esports team as a vehicle to market it?"
✅ Building an exit strategy: Ludwig's last suggestion was building a good team and selling it or selling a roster spot. This is similar to what we see in traditional sports leagues when owners buy and sell teams. He mentions this is more speculative and wouldn't be a viable long-term strategy.
The "OFFBRAND" team
Big Picture:
Ludwig is paving a new path for esports organizations to better utilize creators in their business models. Like other juggernauts in the creator space, he is showing us building profitable businesses while remaining independent is possible. Creators are becoming more self-reliant and can now fund their operations directly through their audience rather than relying solely on large brands & partnerships for dollars. This industry shift opens up a new world of opportunities for creators to mobilize their following and create profitable businesses in new industries.
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Adobe's free Mic Check tool is really impressive.
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Jan 27, 2023
FlawlessAI: This company is trying to revolutionize the filmmaking industry with its "TrueSync" product. This tool allows you to make on-screen visual dialogue changes "in post, avoiding the time, cost, and hassle associated with bringing cast, crew, and infrastructure back to set." There's a crazy example below 👇
Our software harnesses the power of generative AI to change filmed dialogue.
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— Flawless (@Flawlessai)
Jan 27, 2023