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>> At least, we don't have to go to the pound, right now, putting on some pressure.>> Some of Europe's biggest telecom companies are pouring money into high-profile and multi-million dollar video game tournaments.>> Immaculate control here via some weapons.>> Looking to spread their name brands to audiences that create high-speed internet and reliability.
Reuters' Andre Gonzalez has been watching the investment in so-called eSports from Madrid.>> In the last few years, the eSports reached global revenues of $500 million. And it's expected to reach 500 million people and revenues worth one billion Euros in 2019. Right now, revenues are not their main concern.
Nowadays, companies are fighting for the best content. They're competing for their distribution rights on the eSports out of the content of the future.>> Telecom giants, Vodafone, Orange, and Spain's Telefonica among the biggest investors sponsoring massive leagues and teams. None of them have disclosed exactly how much they've invested.
But Reuters understands a quick return on investment is seen as their chief concern.
That $500 million benchmark is tiny compared to mainstream sports like football and basketball, yet according to estimates by JP Morgan, in ten years, eSports can reach revenues it took 50 years for the big leagues to achieve.
And even they're taking notice, the US National Basketball Association, for example, will be sponsoring their own digital league for 17 of its 30 teams next season. Regardless, eSports may need a little time to mature before investors go all in. That's because unlike the NBA or FIFA, eSports have a multitude of games, leagues, teams, competitions, and viewing platforms with little in the way of a governing body.
>> There' are difference of leagues and policies in different video games. Some investors are expecting a consultation of industry in order to decide where to put their money.>> For the short term, the telecom firms are looking to boost returns through paper view models and micro transactions.