Blog
Gamification: How sports rights holders can monetise their IP
Over the years, gaming has transformed from a niche form of entertainment to one of the most widely-consumed digital media.
Simon Birchall
●
Senior Sports Business Consultant
5 May 2023
●
4 minute read
Over the years, gaming has transformed from a niche form of entertainment to one of the most widely-consumed digital media. This evolution did not go unnoticed - and many sports institutions, such as clubs, leagues, sports federations and other rights holders have taken a keen interest in the inherent opportunities that this industry presents, and with good reason.
The untapped potential of sports intellectual property (IP) remains nevertheless enormous, and those keeping a blind eye to it risk falling behind.
Seizing the opportunity
In recent years, the release of sports-related documentaries has intensified, narrating the tales of heroes and underdogs, whilst offering viewers a peek behind the curtain and footage of rarely-seen intimate moments.
We’ve witnessed the rise in popularity of Formula One, partly driven (pardon the pun) by the Drive to Survive Netflix docuseries. The Last Dance mini-series reminded us of the great feats of one of the most successful basketball franchises of the 1990s - the Chicago Bulls - and their driving force, Michael Jordan. Most recently, the feel-good Welcome to Wrexham story proved to be a very compelling narrative, playing on the likability and Hollywood stardom appeal of their new co-owners Ryan Reynolds and Rob McElhenney.
These commercial successes (and numerous others) demonstrate that fans enjoy alternative ways of consuming sports content besides the tested go-to-the-stadium and sit down with a pie or hot-dog, and most rights holders would eagerly seize any opportunities to have their property featured in such formats.
However, some will still shy away from leveraging another extremely popular digital medium in the form of video games, despite the mass appeal of such products being no longer in doubt amongst all age groups, particularly the younger generations.
Others have already taken notice of the outright marketing potential of gamification and have been exploring ways to leverage their properties into diversified commercial revenue streams for quite some time now.
We can highlight the success of some of the most popular sports simulation franchises, such as EA SPORTS FIFA (football), NBA 2K (basketball) and Tony Hawk Pro Skater (Skateboarding), each generating millions in revenue with every new instalment. The man behind the Tony Hawk franchise, arguably one of the most talented skateboarders of all time, revealed in a podcast last year that his video game venture has earned the franchise publisher Activision at least $1.4 billion just from his licensing agreement. During the early 2000s, he personally earned around $4-6 million annually from the first games that they released.
Twenty years down the line, the gaming industry has continued to get richer and exponentially bigger. But not all sports IP-based gaming products lead to enormous commercial success, nor do they necessarily have to.
New audience and monetization
The term “gaming” is used commonly, and sometimes liberally, to describe a range of products, from simple micro-games or phone apps to massive triple-A video game titles. Think of you playing Candy Crush on your commute to work - or you and your children playing a game of EA SPORTS FIFA (soon to be FC - more on that later).
This wide range of gamification opportunities allows rights holders to make use of their intellectual property and data repository in more ways than one.
To best make use of their portfolio, rights holders can opt to explore multiple routes, as every program caters for a distinct need, appeals to different audiences and necessitate various degrees of financial investments. It ultimately comes down to the purpose of each initiative, whether it is to increase audience engagement, deliver sponsor value or expand into new markets.
It should be noted that licensed sports IPs can be incorporated into gaming products in various ways. Whilst some titles have been investing for decades to make the gameplay experience closely mimic reality, other games will only focus on certain aspects of the sport, or introduce fantasy elements to offer a completely novel gameplay experience.
The possibilities for incorporating players, clubs, as well as sports gameplay, into conventional video games, are limitless. These licensing arrangements benefit both publishers and rights holders by expanding their brand into new industries, whilst also providing gamers with new ways of engaging with their favourite products.
When does the gaming experience outweigh the IP?
With some video game franchises going strong for multiple decades now and their place in pop culture being firmly established, some publishers have started to reconsider the need for licensing rights to guarantee the commercial success of their latest products.
EA SPORTS, the video game publisher behind the popular FIFA franchise, recently announced “EA SPORTS FC” - the latest instalment of their freshly renamed virtual football simulation game, effectively cutting ties with the international football federation FIFA, and putting an end to their licensing agreements, a tradition that was first started 25-odd years ago.
This move made waves in the industry and, whilst some gaming enthusiasts have argued that the new name does not quite roll off the tongue just as well as the former title, Electronic Arts seem convinced that their franchise can stand on its own two legs without the use of one of the most recognisable brand titles in gaming. This, coincidentally or not, comes at a time when the concurrence in the virtual football simulation market is at its lowest point in years.
What to expect next?
Mixing sports with gaming isn’t an end in itself, as we have witnessed many spin-off properties developed from the industry. The entire esports scene, comics/novels or video game-inspired TV shows have emerged from gaming IPs and have become extremely popular standalone products. It would be most wise to stay alert for the next sports gaming spin-off.
Despite persistent scepticism by some towards gaming, it has become increasingly evident that its relevance to sports rights holders and their audiences can no longer be ignored.
“Video games are bad for you?
That’s what they said about rock n’ roll.”
Shigeru Miyamoto, creator of the iconic video game franchise Mario
Blog
Gamification: How sports rights holders can monetise their IP
Over the years, gaming has transformed from a niche form of entertainment to one of the most widely-consumed digital media.
Simon Birchall
●
Senior Sports Business Consultant
5 May 2023
●
4 minute read
Over the years, gaming has transformed from a niche form of entertainment to one of the most widely-consumed digital media. This evolution did not go unnoticed - and many sports institutions, such as clubs, leagues, sports federations and other rights holders have taken a keen interest in the inherent opportunities that this industry presents, and with good reason.
The untapped potential of sports intellectual property (IP) remains nevertheless enormous, and those keeping a blind eye to it risk falling behind.
Seizing the opportunity
In recent years, the release of sports-related documentaries has intensified, narrating the tales of heroes and underdogs, whilst offering viewers a peek behind the curtain and footage of rarely-seen intimate moments.
We’ve witnessed the rise in popularity of Formula One, partly driven (pardon the pun) by the Drive to Survive Netflix docuseries. The Last Dance mini-series reminded us of the great feats of one of the most successful basketball franchises of the 1990s - the Chicago Bulls - and their driving force, Michael Jordan. Most recently, the feel-good Welcome to Wrexham story proved to be a very compelling narrative, playing on the likability and Hollywood stardom appeal of their new co-owners Ryan Reynolds and Rob McElhenney.
These commercial successes (and numerous others) demonstrate that fans enjoy alternative ways of consuming sports content besides the tested go-to-the-stadium and sit down with a pie or hot-dog, and most rights holders would eagerly seize any opportunities to have their property featured in such formats.
However, some will still shy away from leveraging another extremely popular digital medium in the form of video games, despite the mass appeal of such products being no longer in doubt amongst all age groups, particularly the younger generations.
Others have already taken notice of the outright marketing potential of gamification and have been exploring ways to leverage their properties into diversified commercial revenue streams for quite some time now.
We can highlight the success of some of the most popular sports simulation franchises, such as EA SPORTS FIFA (football), NBA 2K (basketball) and Tony Hawk Pro Skater (Skateboarding), each generating millions in revenue with every new instalment. The man behind the Tony Hawk franchise, arguably one of the most talented skateboarders of all time, revealed in a podcast last year that his video game venture has earned the franchise publisher Activision at least $1.4 billion just from his licensing agreement. During the early 2000s, he personally earned around $4-6 million annually from the first games that they released.
Twenty years down the line, the gaming industry has continued to get richer and exponentially bigger. But not all sports IP-based gaming products lead to enormous commercial success, nor do they necessarily have to.
New audience and monetization
The term “gaming” is used commonly, and sometimes liberally, to describe a range of products, from simple micro-games or phone apps to massive triple-A video game titles. Think of you playing Candy Crush on your commute to work - or you and your children playing a game of EA SPORTS FIFA (soon to be FC - more on that later).
This wide range of gamification opportunities allows rights holders to make use of their intellectual property and data repository in more ways than one.
To best make use of their portfolio, rights holders can opt to explore multiple routes, as every program caters for a distinct need, appeals to different audiences and necessitate various degrees of financial investments. It ultimately comes down to the purpose of each initiative, whether it is to increase audience engagement, deliver sponsor value or expand into new markets.
It should be noted that licensed sports IPs can be incorporated into gaming products in various ways. Whilst some titles have been investing for decades to make the gameplay experience closely mimic reality, other games will only focus on certain aspects of the sport, or introduce fantasy elements to offer a completely novel gameplay experience.
The possibilities for incorporating players, clubs, as well as sports gameplay, into conventional video games, are limitless. These licensing arrangements benefit both publishers and rights holders by expanding their brand into new industries, whilst also providing gamers with new ways of engaging with their favourite products.
When does the gaming experience outweigh the IP?
With some video game franchises going strong for multiple decades now and their place in pop culture being firmly established, some publishers have started to reconsider the need for licensing rights to guarantee the commercial success of their latest products.
EA SPORTS, the video game publisher behind the popular FIFA franchise, recently announced “EA SPORTS FC” - the latest instalment of their freshly renamed virtual football simulation game, effectively cutting ties with the international football federation FIFA, and putting an end to their licensing agreements, a tradition that was first started 25-odd years ago.
This move made waves in the industry and, whilst some gaming enthusiasts have argued that the new name does not quite roll off the tongue just as well as the former title, Electronic Arts seem convinced that their franchise can stand on its own two legs without the use of one of the most recognisable brand titles in gaming. This, coincidentally or not, comes at a time when the concurrence in the virtual football simulation market is at its lowest point in years.
What to expect next?
Mixing sports with gaming isn’t an end in itself, as we have witnessed many spin-off properties developed from the industry. The entire esports scene, comics/novels or video game-inspired TV shows have emerged from gaming IPs and have become extremely popular standalone products. It would be most wise to stay alert for the next sports gaming spin-off.
Despite persistent scepticism by some towards gaming, it has become increasingly evident that its relevance to sports rights holders and their audiences can no longer be ignored.
“Video games are bad for you?
That’s what they said about rock n’ roll.”
Shigeru Miyamoto, creator of the iconic video game franchise Mario
Blog
Gamification: How sports rights holders can monetise their IP
Over the years, gaming has transformed from a niche form of entertainment to one of the most widely-consumed digital media.
Simon Birchall
●
Senior Sports Business Consultant
5 May 2023
●
4 minute read
Over the years, gaming has transformed from a niche form of entertainment to one of the most widely-consumed digital media. This evolution did not go unnoticed - and many sports institutions, such as clubs, leagues, sports federations and other rights holders have taken a keen interest in the inherent opportunities that this industry presents, and with good reason.
The untapped potential of sports intellectual property (IP) remains nevertheless enormous, and those keeping a blind eye to it risk falling behind.
Seizing the opportunity
In recent years, the release of sports-related documentaries has intensified, narrating the tales of heroes and underdogs, whilst offering viewers a peek behind the curtain and footage of rarely-seen intimate moments.
We’ve witnessed the rise in popularity of Formula One, partly driven (pardon the pun) by the Drive to Survive Netflix docuseries. The Last Dance mini-series reminded us of the great feats of one of the most successful basketball franchises of the 1990s - the Chicago Bulls - and their driving force, Michael Jordan. Most recently, the feel-good Welcome to Wrexham story proved to be a very compelling narrative, playing on the likability and Hollywood stardom appeal of their new co-owners Ryan Reynolds and Rob McElhenney.
These commercial successes (and numerous others) demonstrate that fans enjoy alternative ways of consuming sports content besides the tested go-to-the-stadium and sit down with a pie or hot-dog, and most rights holders would eagerly seize any opportunities to have their property featured in such formats.
However, some will still shy away from leveraging another extremely popular digital medium in the form of video games, despite the mass appeal of such products being no longer in doubt amongst all age groups, particularly the younger generations.
Others have already taken notice of the outright marketing potential of gamification and have been exploring ways to leverage their properties into diversified commercial revenue streams for quite some time now.
We can highlight the success of some of the most popular sports simulation franchises, such as EA SPORTS FIFA (football), NBA 2K (basketball) and Tony Hawk Pro Skater (Skateboarding), each generating millions in revenue with every new instalment. The man behind the Tony Hawk franchise, arguably one of the most talented skateboarders of all time, revealed in a podcast last year that his video game venture has earned the franchise publisher Activision at least $1.4 billion just from his licensing agreement. During the early 2000s, he personally earned around $4-6 million annually from the first games that they released.
Twenty years down the line, the gaming industry has continued to get richer and exponentially bigger. But not all sports IP-based gaming products lead to enormous commercial success, nor do they necessarily have to.
New audience and monetization
The term “gaming” is used commonly, and sometimes liberally, to describe a range of products, from simple micro-games or phone apps to massive triple-A video game titles. Think of you playing Candy Crush on your commute to work - or you and your children playing a game of EA SPORTS FIFA (soon to be FC - more on that later).
This wide range of gamification opportunities allows rights holders to make use of their intellectual property and data repository in more ways than one.
To best make use of their portfolio, rights holders can opt to explore multiple routes, as every program caters for a distinct need, appeals to different audiences and necessitate various degrees of financial investments. It ultimately comes down to the purpose of each initiative, whether it is to increase audience engagement, deliver sponsor value or expand into new markets.
It should be noted that licensed sports IPs can be incorporated into gaming products in various ways. Whilst some titles have been investing for decades to make the gameplay experience closely mimic reality, other games will only focus on certain aspects of the sport, or introduce fantasy elements to offer a completely novel gameplay experience.
The possibilities for incorporating players, clubs, as well as sports gameplay, into conventional video games, are limitless. These licensing arrangements benefit both publishers and rights holders by expanding their brand into new industries, whilst also providing gamers with new ways of engaging with their favourite products.
When does the gaming experience outweigh the IP?
With some video game franchises going strong for multiple decades now and their place in pop culture being firmly established, some publishers have started to reconsider the need for licensing rights to guarantee the commercial success of their latest products.
EA SPORTS, the video game publisher behind the popular FIFA franchise, recently announced “EA SPORTS FC” - the latest instalment of their freshly renamed virtual football simulation game, effectively cutting ties with the international football federation FIFA, and putting an end to their licensing agreements, a tradition that was first started 25-odd years ago.
This move made waves in the industry and, whilst some gaming enthusiasts have argued that the new name does not quite roll off the tongue just as well as the former title, Electronic Arts seem convinced that their franchise can stand on its own two legs without the use of one of the most recognisable brand titles in gaming. This, coincidentally or not, comes at a time when the concurrence in the virtual football simulation market is at its lowest point in years.
What to expect next?
Mixing sports with gaming isn’t an end in itself, as we have witnessed many spin-off properties developed from the industry. The entire esports scene, comics/novels or video game-inspired TV shows have emerged from gaming IPs and have become extremely popular standalone products. It would be most wise to stay alert for the next sports gaming spin-off.
Despite persistent scepticism by some towards gaming, it has become increasingly evident that its relevance to sports rights holders and their audiences can no longer be ignored.
“Video games are bad for you?
That’s what they said about rock n’ roll.”
Shigeru Miyamoto, creator of the iconic video game franchise Mario
