The NBA is launching its own eSports league

No distribution partners were announced for this league but eSports is a growing part of YouTube and Facebook’s video strategies. In 2015 the dedicated video game streaming service Twitch said it had over 100 million users a month. A report from the gaming market intelligence firm Newzoo expects 427 million viewers of eSports in 2019.

As in other eSports leagues, there will be a cash prize for the winner, although it is likely to be smaller than other competitive gaming leagues. The current NBA eSports tournaments organized by 2K Sports have prizes of around $250,000. The cash prize for the 2016 world championship of the fantasy battle game “League of Legends” was over $5 million.

Moving into eSports opens up a new revenue stream for the NBA, which had revenues over $5 billion for the 2014/15 season. According to the Newzoo report, revenues for eSports grew 51% in 2016 to $493 million. It expects the industry to break the $1 billion mark in 2019.

Some NBA teams are already active in the eSports space. The Philadelphia 76ers acquired two eSports teams in September 2016, but these were active only in the “League of Legends” game.

Competitive gaming has become a hot topic among former basketball stars. Former NBA player Magic Johnson along with the Golden State Warriors team also invested in a team last year. Recently retired NBA star Kobe Bryant was said to be mulling an investment in eSports through his $100 million investment fund.

NBA commissioner Adam Silver, whose virtual avatar will present the winner of the league with the trophy, said in a statement: “We believe we have a unique opportunity to develop something truly special for our fans and the young and growing eSports community.”