Activision Blizzard could wait years before seeing export-related profits?

Activision Blizzard

It could take years for the US giant to make export-related profits. This, at least, is what the experts and the CEO of Blizzard believe.

Activision Blizzard, since the birth of the Overwatch League, has placed 20 slots, for an estimated value of 20-60 million dollars each. He has also signed agreements for the transmission of the league on Twitch, ESPN, Disney XD and ABC, in addition to concluding rather rich sponsorships such as with Toyota, Coca Cola and co-marketing experiments with Kellogg, which will produce Cheez-It and Overwatch branded Pringles League.

The framework export, however, for Activision Blizzard is still a very recent issue and is currently not generating profits for the company that will soon also inaugurate the Call of Duty League. Blizzard recorded a 25% drop in Overwatch League revenue in the first six months of 2019 due to the incredible commercial success of the Battle for Azeroth.

The company also spent over $ 50 million on exports last year only in staff expenses, facilities and equipment for streaming and TV broadcasting and to keep the entire competitive bandwagon standing. This means that, at the moment, not all the mega agreements we talked about were enough.

Two elements could accelerate the process of generating profits from the US giant: cultivating the fan base by increasing the perception and the engagement deriving from belonging to a city.

The experimental games played at the franchise headquarters have registered not only an excellent attendance of live audience but also a good deal of sales related to the merchandise of the teams.

Secondly, we should focus on offering the public a better visual experience. Dennis Durkin, Activision Chief Financial Officer, said: ” There is still a lot of scope for further improvements to the visual experience, and this is a key area for us, as we believe it is essential to continue to make the transmission not only compelling but also easily observable for a wider audience ”.

The CEO, Bobby Kotick, has already taken into account to consider the profits in the export spread ” in a time horizon of 10 years “.

In short, a further confirmation that those who want to invest in exports must do so taking into consideration a financial commitment that will pay for itself only over the long term.