For all of our esports–both VCT and LoL Esports and also TFT and other potential future esports–and as part of the evolution of Riot’s watch platform, we’re building out-of-game experiences where our fans can socialize, interact, express themselves, and flex their level of fandom. If we give players ways to enjoy digital goods and services outside of the game through the watch experience itself or in virtual clubhouses, this opens up a wide variety of opportunities for all esports teams and will enhance the live sports viewing experience.

Having the ability to sell esports digital goods and services directly to viewers will provide a scalable revenue source that should fill the hole left by the lack of broadcast licenses. This is one of the big areas where we think we will disrupt the business of sports – digital revenues sourced directly from viewers through our broadcasts. We see lots of opportunities to develop new products and services our fans will love that will enhance their experience watching esports and offer them new ways to express their fandom.

Fandom NEXT: Virtual Live Event Experiences

A significant part of the business of traditional sports is live event revenue from tickets, concessions, and merch. Conversely, live events for esports are not a big part of our current business. Fandom for esports is much more global (vs. city-based), the virtual nature of esports doesn’t require a big arena or stadium for competitions, and almost all of our viewers are watching online exclusively. This leaves very few ways for teams to monetize their fandom through live events. To address this challenge, we’re building a virtual ticket program that will both enhance the fan experience watching our events online and also generate revenue.

Starting with Worlds 2023, Riot will test a new product that bridges online and IRL fan engagement. Let’s call it the “Virtual Pass.” The primary goals of the Virtual Pass are to give fans:

• A rich online Worlds viewing experience;
• A bundle of products and services at a tremendous value;
• More ways to express their fandom and excitement. 

Our additional goal? Support esports team revenues. 

For Worlds 2023, the Virtual Pass will feature a bundle of digital products (Worlds skin exclusive variant, in-game event pass, plus some exclusive content), unique physical products (exclusive Worlds merch), and physical and digital goods from our sponsors. In 2024 and beyond, we want to expand the offering in LoL Esports and introduce the Virtual Pass to VCT, adding more experiential features to bring fans closer to the action – such as access to premium in-game cameras (like being able to lock on and watch any champion or agent), access to special cameras around the live event venue, exclusive chat channels and lounges, digital collectibles, status items like special icons or borders, and maybe the ability to have very select fan messages show up on the event broadcast. These are just ideas and examples… some of them are probably bad and won’t see the light of day (or so my team occasionally tells me…). 

We’re intentionally building this “Virtual Pass” in a way that we can have team-specific versions with team-branded virtual and physical goods and maybe even pro team room access, exclusive chat channels with pro teams, and the ability to interact with the players. If we design this product right, it will deliver great experiences and connect fans with their favorite players and teams, while simultaneously creating a new revenue stream for teams.