Published: Sun, December 18, 2016
Economy | By Melissa Porter

MLB's BAMTech agrees to $300M deal with Riot

MLB's BAMTech agrees to $300M deal with Riot

BAMTech is a partnership between Major League Baseball Advanced Media (MLBAM), The Walt Disney Company and the National Hockey League and now deals with online streaming for HBO, MLB, NHL and WWE. Twitch is great and all but BAMTech has been an incredible success in video streaming content to millions of people all across the world.

BAMTech will launch a streaming application in 2017 for League of Legends which will run on both PCs and smartphones and intends to monetize via advertising sales and sponsorship deals, which is what the exclusivity referenced above entails.

Central to the deal is BAMTech's ability to have exclusive rights to stream and monetize League of Legends competitions, which includes a $50 million per year guarantee for Riot Games.

"We deliberately designed our events, on the other hand, to be inclusive experience for all of our fans, even our World Championship", Riot Vice President of E-Sports Dustin Beck said at the 2016 Game Developers Conference.

This probably isn't too tough a pill for Riot Games to swallow. Bowman pointed out that the amount of time registered through official League of Legends streaming channels is greater than any other sport in the world.

League of Legends has more than 100 million monthly users worldwide, and is set to rake in $1.89 billion in global revenue this year, according to WSJ. That being said, BAMTech will eventually bring out a premium experience through its app-based streaming service.

The Walt Disney Company, which is the parent company of ESPN, owns 33 percent of BAMTech.

This deal is huge for the future of not only League but of Esports in general.

The two will make money from ads and sponsorships, and revenue beyond $300M will be shared. It's all about getting League into the eyes of many to prove it's a viable sport worthy of being enjoyed in a larger scale.

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