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ESPN Exits Esports Segment: What This Means For Streamers, Stocks

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ESPN Exits Esports Segment: What This Means For Streamers, Stocks

The Esports Observer reports ESPN is shutting down its esports division.

What Happened: “We have made the difficult decision to cease operations for our dedicated daily esports editorial and content,” ESPN told The Esports Observer.

The announcement follows Walt Disney Co's (NYSE: DIS) elimination of 500 jobs at the ESPN segment, including 300 layoffs.

Why It’s Important: The esports sector is seeing explosive growth and loses a major media company covering it.

ESPN is also an esports streaming partner. The company aired “League of Legends” coverage on ESPN2 and has upcoming rights for "NBA2K" and other events.

Take-Two Interactive Software (NASDAQ: TTWO) owns "NBA2K" and could now have to find a new streaming partner for the upcoming season.

In the last year, only 25 of the 288 ESPN events on Twitch, an Amazon.com (NASDAQ: AMZN), generated over 1,000 viewers.

ESPN's coverage of the Rocket League Invitational saw 15,000 viewers in the summer.

Related Link: ESPN Diversifies With Sports Betting Deals From Draftkings And Caesars

What’s Next: Smaller esports companies could benefit from one less competitor for streaming deals and coverage. 

Super League Gaming (NASDAQ: SLGG) is an esports entertainment company. The company has grown its social media audience in 2020.

The company’s esports videos passed one billion views earlier this summer.

Allied Esports Entertainment (NASDAQ: AESE) has seen strong social media growth and viewership in 2020. The company’s Valorant tournament saw 1.6 million viewers on Twitch.

Another company to keep an eye on is Chinese streamer Huya (NYSE: HUYA), which is merging with Douyu International (NASDAQ: DOYU).

Huya could use this opportunity to push forward into the United States by landing some streaming deals.

 

Related Articles (DIS + SLGG)

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