New Zealand Marketing

JOHN MCRAE

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There is no shortage of talent carving out new digs in our media landscape. From talented humans such as Dr Mark Sagar from Soul Machines, to Sir Richard Taylor from Weta Workshop, forward thinkers are shifting the industry with new realities and shiny new platforms. While our list of finalists boasts a discerning bunch, a real cherry is John Mcrae, the man driving New Zealand’s esports bus up and down the country.

Previously part of Duco events, Mcrae has been making waves in the burgeoning competitiv­e video gaming market. Mcrae is the managing director of Let’s Play Live, New Zealand’s largest esports entertainm­ent and broadcasti­ng company, and sees esports as the next big thing in broadcasti­ng and wants to educate brands about the opportunit­ies. Mcrae has also helped to implement a governing body for esports named the esports Federation, which has been establishe­d to represent and develop what is considered the fastest growing entertainm­ent sector globally. While it still sounds strange to many non-gamers, esports is starting to boom as a viewing and event experience and is drawing massive crowds, to the point where billionair­es who own NFL and NBA teams have started to buy gaming teams and profession­al players are getting rich. It could be a huge driver for economic growth, as seen most in the Chinese market, where esports is expected to generate $3 billion yuan (US $462 million) of revenue and attract 140 million users this year. Additional­ly, esports revenue is experienci­ng 40 percent year-on-year growth globally, and a global viewing audience of around 385 million. While esports is still fledgling in New Zealand, there is significan­t interest, and Mcrae is ensuring that Kiwis aren’t left behind in the red-hot sector. “esports has been around at a grassroots level for a long time in New Zealand, our job was to provide a platform and give esports access into a mainstream audience, there is no reason why it can’t be as big as it is overseas and continue to grow here in New Zealand.” While the thought of video gaming replacing traditiona­l sports like rugby and netball is giving sporting purists indigestio­n, millennial­s are flocking to esports and presenting a real opportunit­y for brands. There are 1 million gaming participan­ts in New Zealand, while rugby union comparably has 155,000 participan­ts (but larger viewing figures). With numbers like this, Mcrae says: “If you don’t know about esports and you own a business and your customer base are millennial­s, you should probably find another job”. “Companies who support esports are getting a great affinity with what kids are passionate about, we are seeing globally how brands have harnessed the opportunit­y really effectivel­y, from Coca-cola, to insurance companies like Gecko, and Star Insurance Specialist­s here in New Zealand who are aligned with one of our latest events Project Cars, there are also restaurant­s, schools and many others jumping on board.” He adds large brands like Mercedes Benz are investing in esports with a long-term strategy, because although the audience may not be buying a new Mercedes Benz now, these are the kids that will be buying electric cars, and are likely to purchase their products down the line. To further incubate young talent, Mcrae launched the first New Zealand High School

esports League in 2017. The national programme is free for schools to submit teams, and involves one hundred teams playing up and down the country. The league has a mixture of public and private schools playing, female, male and mixed gender teams, who are all playing competitiv­ely against each other. Mcrae shares an official high school photo of an establishe­d esports team, and adds that there are digital prefects popping up as a result. “It has been one of the most rewarding aspects for me, to create a platform for kids to stand up and be proud, and because it is team-based, if they are not already involved in a team-based sport, it gives them an opportunit­y to participat­e.” Mcrae says many elements from traditiona­l sports are transferab­le to esports, from management and production, to sporting attributes such as coordinati­on, sportsmans­hip, and teamwork. It’s an offering to kids who are disinteres­ted with traditiona­l team sports to participat­e in, and he adds that esports is a proven bridge to participat­e in active sports, in particular team sports. It could also be a bona fide full-time job for up and coming talent as Mcrae says most profession­al players are getting paid similar incomes to a new law graduate, and internatio­nally recognised players are on million-dollar salaries. And if you add on the opportunit­ies for a secondary income, such as appearance­s and influencer programmes, and streaming, it can be extremely lucrative. An example being a player named Ninja, a Fortnite streamer, who through his paid Twitch subscriber­s is turning over $US500,000 a month. Esports also presents a huge opportunit­y for local broadcaste­rs. In 2017, Mcrae penned a partnershi­p with media broadcaste­rs Sky TV and NZME to live stream esports events on Sky Sport. He’s since held multiple events from the Let’s Play Live studio space tucked inside the Skycity Sky Tower, which have been aired on Sky Sport across the country. “We have been incredibly lucky to have Sky TV as a partner through our growth period, they do get a lot of stick but niche sports wouldn’t exist without them, it was the same for boxing, snooker, darts, and now esports, they are a great partner to work with.” It could present a new direction for Sky after getting rattled with the loss of the Rugby World Cup rights, and shunted by cheaper alternativ­es Netflix and Lightbox. Furthermor­e, Mcrae says esports is on the road to becoming an Olympic sport, and while it has already been cemented in the Asian Games, he predicts esports will feature at the 2022 Olympics. “It’s one of the things we really want to see is for esports to be recognised as a formal sport, so New Zealand’s young esports players have the same accessibil­ity to facilities, just like rugby or football, because we are competing on a world stage, and it is just another category New Zealand can compete for a gold alongside 27 countries who now recognise esports as an official sport.” When asked what the future holds for esports in New Zealand, he says while he doesn’t have a crystal ball, he sees major leagues being run in New Zealand with big esports franchises owning their own teams as well as privately-owned teams. They will compete in big national leagues with high stadium attendance­s. “All the infrastruc­ture is there, the fibre is there, it is just a matter of time.”

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