IPL spent over $1 million on this year's event and lost money, they expect it to make money by its fifth year

Posted by SFilp • January 7, 2013 at 3:11 p.m. PST
IPL spent over $1 million on this year's event and lost money, they expect it to make money by its fifth year IGN Pro League's founder, David Ting, recently stated that with this past year's IPL events the company had lost money. However, they made a five-year bet and expects that the IPL series will be making money by the end of the fifth year.


While exact numbers aren't given, IGN stated they spent "well over" $1 million on this past year's events, and that the company lost money on the investment.

Expense

Putting on an event on the scale of an IPL isn’t cheap. IGN put in “well more” than $1 million, according to its founder David Ting. IGN lost money on the event, all told, Ting informed TNW, but the company has made a five-year bet that it is only one year in. It expects in five years that its esports efforts, the larger IPL series, to make money.

That’s a long runway, but one that is feasible. IGN is a division of News Corp, giving it the financial backing that it could need.

There is a simple fact that undergirds esports as a potentially profitable, potentially massively profitable business: demographics. Competitive gaming has oodles of young males in the 18-34 age bracket, a key market segment for advertisers and brands.

As a reminder, back in November it was announced that Capcom games would be joining IPL next season, with both Super Street Fighter Arcade Edition v2012 and Street Fighter X Tekken, and possibly others in the lineup.

Via TheNextWeb and Slasher.

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