PERTH: Emerge Gaming Limited, the owner and operator of eSports and gaming technology, has concluded a first phase licencing agreement with Tecnología de Impacto Multiple S.L. (TIM) to market Emerge’s proprietary tournament platform technology into an affiliate sales network under a white-labelled brand.
Emerge, in partnership with TIM and its related entity Impact Crowd Technology S.L., have the common objective of building the world’s biggest online casual gaming community by leveraging a sophisticated affiliate network of more than 10 million members.
The partnership will take a phased approach, with the first phase tournament platform technology being the precursor to the second phase launch of Emerge’s Cloud Game Streaming solution. The Agreement broadens Emerge’s market reach across more than 150 emerging and developed markets.
The product offering with TIM is expected to launch across 15 countries in November 2020. Emerge will keep the market informed of its progress.
Gregory Stevens, CEO of Emerge Gaming, commented: “The ability of Emerge to market its eSports and Gaming products through an established and successful affiliate sales network delivers rapid growth and scale whilst targeting a key strategic growth market of high lifetime value users. We are excited to be partnering with TIM, leveraging their 10 million affiliate member network as both users and advocates to market our tournament platform technology and support our objective of building the world’s biggest gaming community.
“Emerge has successfully demonstrated its ability to monetise its proprietary eSports tournament technology and expanding through a global technology-enabled sales network has the potential to generate significant revenues and shareholder value. We have been encouraged by TIM’s belief in our product underpinned by its guarantee to deliver 100,000 subscribers in six months”.
Under this agreement, Emerge will bill a monthly subscription to subscribers of the tournament platform. The value proposition is that subscribers will pay USD$8.50 per month (AUD$12.00) to enter into competitions involving their favourite mobile social games, earn rewards and win prizes and participate in a minimum aggregate prize pool of USD$ 500,000 (AUD$700,000).
The 100,000-user guarantee of TIM equates to a monthly revenue of USD$ 850,000 (AUD$1.2M). Assuming 100% retention of paying subscribers, the monthly revenue from 100,000 paying subscribers translates to potential annual recurring revenue of USD$ 10.2 million (AUD$14.4 million).
In the eSports and gaming markets, services that stream high quality immersive games have been slow to commercialise being previously hampered by restrictions of bandwidth resulting in latency challenges and expensive hardware solutions. Today, most games are downloaded to a device—a smartphone, gaming console, or PC, by gamers. Cloud gaming moves content execution off the consumer’s device and into the cloud.
Similar to how video streaming services deliver content (Netflix, Showmax, YouTube, Twitch, etc.) the game is streamed to the player’s device via content delivery networks with regional points of presence near densely populated cities. In addition to streaming the game’s video, the gamers commands to control the gameplay are rapidly sent back to the cloud. Essentially the “Console” is in the cloud.
Emerge’s cloud streaming technology solution offers an all-in-one gaming and entertainment platform for mobile smart devices and smart TV’s including cloud gaming, live streaming, video, comics, esports and ecommerce. Offering download free cloud-based multiplayer AAA games with graphic interface overlays seamlessly to mobile devices is a key differentiator of the technology. As a second phase, Emerge and TIM are planning to collaborate to launch the cloud game streaming technology.
The product is set to launch in 15 countries in November 2020 under a new brand. Emerge will keep the market informed of its respective country roll out strategy, the product and the launch. TIM will be driving the pre-launch campaign and developing marketing material in anticipation of the product launch. With the launch of this product, Emerge will have two live platforms in operation. This product will be targeted at a higher value demographic than Emerge’s other live product, MTN Arena, which is targeted at achieving lower value fees from a significant volume of users.
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