Misfit Gaming raises $35M because it focuses on media revenues

Misfits Gaming Group has raised $35 million in funding in a spherical led by The E.W. Scripps Firm as Misfits focuses on esports media revenues.

Scripps itself will make investments $10 million into Misfits’ world esports group, which incorporates its two Florida esports franchises and different properties.

With its funding, Scripps has the ability to distribute Misfits’ esports media content material via its linear and over-the-top tv platforms in Florida and throughout the U.S. The partnership between Scripps and Misfits additionally will enhance Florida advertisers’ entry to Misfits’ massive and rising younger esports and gaming audiences.

Over time, Boca Raton, Florida-based Misfits expects extra income to come back from media rights revenues and long-form content material, moderately than sponsorships and prizes. In some methods, that’s bucking the pattern within the business.

International esports revenues will hit simply shy of $1.1 billion by the top of 2021, a year-on-year development of 14.5% over 2020’s $947.1 million, in response to market researcher Newzoo. In 2021, $833.6 million in revenues — over three-quarters of the overall market — will come from media rights and sponsorship. Of that quantity, $641 million will come from sponsorship revenues.

However because the viewers grows, media revenues ought to develop as nicely. The esports viewers ought to develop from 474 million individuals in 2021 to 577.2 million in 2024, Newzoo stated. The growing curiosity in video gaming as a spectator sport is fueling the expansion of the esports enterprise, just like fan curiosity in different main sports activities leagues.

Content material creation

Above: Misfits Gaming manufacturing.

Picture Credit score: Misfits Gaming Group

Misfits has a high-end content material manufacturing and esports apply facility in South Florida. The corporate personal three esports groups collaborating in franchised leagues, a community of content material creators and aggressive avid gamers, and a full-service in-house media crew. It operates the Florida Mayhem within the Overwatch League, the Florida Mutineers within the Name of Obligation League, and Misfits Gaming in League of Legends.

Scripps Native Media President Brian Lawlor stated in an announcement that the mixture of Misfits and Scripps will assist construct power round esports competitions, and that can increase content material and join advertisers with younger audiences. Lawlor is becoming a member of Misfits’ board.

Along with distributing in-game content material and advertising, Misfits creates unique content material for all gaming audiences and connects tens of millions of individuals worldwide via stay, on-line occasions and social media.

An esports and gaming media firm

Above: Misfits Gaming is constructing a media enterprise on its gaming and esports properties.

Picture Credit score: Misfits Gaming Group

Ben Spoont, CEO of Misfits Gaming Group, stated in an e mail to GamesBeat, “We’re leveraging our present state-of-the-art digital-first manufacturing and coaching facility in South Florida to create an experimental content material lab. We’re going to discover numerous codecs, hyper-produce ready-to-scale programming, and instantly take a look at that content material throughout Scripps’ unbelievable distribution automobiles in each linear and OTT channels. We’ll have the ability to gauge viewers curiosity and rinse exhibits that don’t work, and repeat people who do. Consider it as an inner pilot program. It’s actually thrilling stuff.”

Scripps sees the big-picture panorama for the media future and the significance of capturing Gen Z and Millennial audiences ages 12 to 35.

“We’re forming a strategic partnership with Scripps helping MGG on advert gross sales, sponsorships, occasions, content material manufacturing, and distribution,” Spoont stated. “This deal will materially change the corporate and the way we function. We’re increasing our footprint past our aggressive groups to incorporate long-form content material and conventional media buys. Scripps is already connecting us to their military of tv and (over-the-top) OTT gross sales executives and we’re in growth of varied present codecs.”

Scripps was based in 1878 and it’s a diversified media firm with holdings that make it the fourth-largest native TV broadcaster. It has 61 native TV stations throughout 41 markets.

“Now we have all the time been an formidable firm and wanted strategic companions and traders alongside the way in which: asserting the Miami Warmth (Arison household) again in 2017; bringing on board each the Orlando Magic (DeVos household) and Cleveland Browns/Columbus Crew possession (Haslam household) has introduced us deep sports activities media and operational information which has helped drive our esports enterprise,” Spoont stated. “Now, as we glance to develop and develop our communities throughout the sport titles we play in and look in the direction of a broader media method (and its corresponding monetization technique), having an investor and associate in Scripps is a no brainer and one thing we’re tremendous enthusiastic about. Now we have already begun rolling up our sleeves collectively to develop a multi-prong method to collaborate.”

The corporate isn’t but able to announce its slate of exhibits, however Spoont stated he’s very a lot trying to faucet unique, behind-the-scenes entry to Misfits’ groups, influencers, and professional avid gamers.

Above: The Florida Mutineers are a part of the Name of Obligation League.

Picture Credit score: Misfits Gaming

“We’ll be every little thing from an esports coaching how-to sequence to in-depth participant profiles and day-in-the-life docuseries of what it’s prefer to be on a professional crew,” Spoont stated.

Scripps was enthusiastic about Misfits partly as a result of Scripps owns six stations all through Florida. The state is a significant media marketplace for Scripps, and two of Misfits’ main groups will present all these houses with unique entry to the Florida Mutineers of the Name of Obligation League, and the Florida Mayhem of the Overwatch League.