History of the Development of Ukrainian Esports Broadcasts:
The first esports broadcasts in Ukraine appeared in the early 2000s. At that time, the main venues for tournaments were internet cafes and computer clubs. Broadcasts were conducted through local networks and were available to only a small number of viewers. However, interest in esports was rapidly growing, and with the development of the internet, the opportunity to broadcast online emerged.
Since the mid-2010s, the esports broadcasting market in Ukraine began to develop rapidly. One of the key factors was the creation of professional esports teams. First and foremost, this refers to the esports organization Natus Vincere (NAVI), which quickly gained popularity and attracted the attention of a wide audience.
During this period, streaming platforms such as Twitch and YouTube Gaming also began to actively develop in Ukraine. These platforms allowed esports organizations and individual players to stream their games live, attracting thousands of viewers. The popularity of streaming quickly grew, and Ukrainian streamers became an integral part of the international esports community.
Current State: Major Platforms and Channels
Today, the main platforms for esports broadcasts in Ukraine are Twitch, YouTube Gaming, and Facebook Gaming. These platforms provide convenient tools for organizing broadcasts, interacting with the audience, and monetizing content.
Major Ukrainian esports organizations, such as NAVI, HellRaisers, and Team Spirit, conduct regular broadcasts on their channels, attracting millions of viewers.
One of the most important players in the Ukrainian esports broadcasting market is the studio Maincast. Founded in 2018, Maincast quickly became a leader in the field of organizing and conducting esports broadcasts. The studio specializes in creating high-quality content for viewers worldwide and is an official partner of the largest esports events.
Maincast provides a full cycle of broadcast production, including commentary, analytics, player interviews, and studio shows. Due to professionalism and quality work, Maincast attracts millions of viewers and collaborates with leading global brands.
Maincast's Success Story
Today, the studio Maincast is a leader in the Ukrainian esports broadcasting market. Its founders, despite commercial secrets, are quite open about sharing successful cases. The history of Maincast highlights several pivotal moments characteristic of the entire Ukrainian esports broadcasting market.
Case #1: every leader was once a newcomer. Maincast was created in 2018, opposing Russian investors who had completely taken over the previously established studio RuHub. The startup had an experienced team and some equipment but urgently needed money. For this, the founders approached a well-known Ukrainian investor Maksim Kryppa, but the negotiation process was complicated and lengthy. According to the studio's co-founder, commentator Vitaliy Volochai, they wore down Maksim Kryppa with their persuasion. Two months later, Maksim Kryppa became one of the shareholders of Maincast.
Case #2: purchasing rights. The bulk of expenses for any company engaged in esports broadcasting consists of the costs of purchasing broadcast rights. While the issue of finding money was resolved after Maksim Kryppa's arrival, the ability to manage the acquisition was not straightforward. For example, until 2022, Maincast had acquired rights to broadcast major esports events in Ukrainian and Russian. After February 2022, it became clear that Russian-language broadcasting was no longer possible. Divesting part of the Russian-language rights while retaining the Ukrainian-language ones took about four months.
Case #3: sponsorship contracts. The revenue part of broadcast studios is also well-known – sponsorship contracts. However, in 2022, Maincast was on the brink of bankruptcy. Due to well-known reasons, Russian sponsors were asked to leave, and Ukrainian sponsors experienced their worst times and left themselves. Enthusiasm and sound financial policy, including that from investor Maksim Kryppa, helped them hold on.
Case #4: even in dark times, not everything is bad. Leaving the Russian-language broadcast market seemed like a collapse but was inevitable. It wasn't just about politics: commentators, managers, owners, and Maksim Kryppa himself could no longer and didn't want to use the language of the hostile side. The big decision brought significant results: today, the segment of Ukrainian-language broadcasts has grown several times and reached 5 million. Maincast owns 64% of the Ukrainian-language esports broadcast segment and 95% of the broadcasting rights.
Growth Prospects
One of the key factors for the growth of the Ukrainian esports broadcasting market is technological development. Virtual and augmented reality, improved streaming quality, and new interactive opportunities create a more engaging and immersive experience for viewers.
With the increase in the number of viewers and the growing popularity of esports, the Ukrainian esports broadcasting market has great prospects for expansion. This includes attracting new categories of viewers, such as older age groups and the female audience.
The Ukrainian esports broadcasting market demonstrates steady growth and has significant prospects for further development. With an increasing audience, technological innovations, and support from investors, Ukrainian esports will continue to attract attention and generate substantial revenue.
Ukrainian teams, streamers, and studios, such as Maincast, actively participate in the development of the global esports scene, and each year their influence becomes more noticeable. The esports broadcasting market in Ukraine has all the chances to become one of the leading in the world, thanks to professionalism, innovation, and community support.
Reference Information:
- The audience for esports broadcasts in Ukraine continues to grow. In 2023, the number of viewers reached 5 million people, and it is expected to increase to 7 million by 2025.
- In 2024, Maincast broke its own record: at its peak, the broadcast was watched by 134 thousand unique users. This was a tournament won by the NAVI team.
- Maincast and NAVI share a common investor – Maksim Kryppa. Maksim Kryppa invested in Maincast in 2018, and a few months later, in the same 2018, Maksim Kryppa made his first investments in NAVI. In 2022, Maksim Kryppa became the beneficial owner of NAVI.
Investments in Ukrainian Esports
Yes, Ukraine is in dire need of investment. But investors are hesitant to invest in a country engaged in full-scale war and in an economy with complex forecasting. Therefore, among Ukrainian market segments, it is increasingly difficult to find one that would be in demand among investors and perceived as sufficiently reliable for investment. This is despite the fact that there are investors who specialize in high-risk investments. In this light, Ukrainian esports ceases to be just an entertainment industry but begins to play the role of an economic driver.
Today, esports in Ukraine is one of the most promising and dynamically developing sectors of the digital economy. And this is despite the fact that at the start, the industry had relatively small chances of success. Ukrainian esports players started under conditions of chronic lag: there was neither affordable internet nor enough equipment.
However, scarcity can also be a driver – proven by experience. Lacking the opportunity to practice at home, young guys practically lived in computer clubs. Professional athletes often say that success requires hunger and anger. It is these two factors that drive the victory, something similar happened with Ukrainian esports players. From cramped apartments in residential areas, they ended up at tournaments and won.
At the same time, hunger and the desire for victory are important but not the only factors. Looking at the success stories of esports players and teams, one can see that at some point, a reliable investor came into their lives, and everything started to roll.
For example, this was the case with the esports organization NAVI, which was created by players, including Oleksandr Kokhanovskyi, but the green light for an international tournament and a professional league was given by a philanthropist known as Arbalet. Further victories were largely ensured by investor Maksim Kryppa, who took over NAVI at a time when the organization had reached its growth ceiling and needed funds to move to the next level.
Increased Interest from Private Investors
Maksim Kryppa was one of the first Ukrainian investors to turn his attention and capital to the esports market. Naturally, we will often mention him in this material. The example of Maksim Kryppa and his segmental portfolio was successful, in conjunction with the general successes of Ukrainian esports players, it led to an increase in interest in the industry from investors.
In recent years, the number of investors in the Ukrainian esports market has significantly increased. Moreover, we are not only talking about investing in teams but also about investing in the development of the industry, holding tournaments, and creating educational programs. All investment efforts can be conditionally divided into direct and infrastructural projects.
Direct investments in teams are clear. The investor invests money in promising teams and organizations to make a profit. HellRaisers, Team Spirit, and the already mentioned NAVI operate on this principle.
By the way, Maksim Kryppa recently changed his status regarding NAVI. If in 2018 Maksim Kryppa came as an investor ready to become a majority owner, subsequent successes of the NAVI teams likely convinced him of the asset's prospects. By 2020, Maksim Kryppa decided to become the full owner of the organization.
But the dynamically developing industry has high entry barriers. Even for someone like Maksim Kryppa, who was and remains one of the first investors in Ukraine to venture into esports, it was not easy to become the beneficial owner of NAVI. The organization offered to sign a contract with several conditions. What those conditions were, the press does not know. However, NAVI confirmed that it took Maksim Kryppa several years to fulfill them.
Investments in infrastructure projects: often, investors are interested not in the teams themselves but in specific projects. The situation is understandable: it takes a lot of money to grow a team, and acquiring an already formed promising team is very difficult and expensive. The example of NAVI proves this. Wanting to enter the market, investors invest in the development of infrastructure facilities, arenas, studios, training bases, etc.
To illustrate, let's again take the experience of Maksim Kryppa, who has worked with various assets. For example, he owns part of the esports broadcast studio Maincast, in which he made his first investments during the startup stage. Last year, Maksim Kryppa bought the business center "Parus," which experts believe is intended for creating a modern esports hub.
Support from International Brands
An important component of the investment attractiveness and growth of the esports industry is the support of sponsors. It is no secret that teams earn well from advertising contracts, and the profitability of studios depends almost entirely on sponsorship contracts.
From this perspective, the Ukrainian segment of the global esports market also shows good results. Many global brands have already entered the Ukrainian market and have not come empty-handed. The presence of companies like Intel or Logitech is pleasant but understandable. The arrival of Coca-Cola and Red Bull is a very good signal. These brands are distinguished not only by their resilience but also by good calculation. Their marketing strategies are exemplary and are studied worldwide. If such giants have joined the race, then the game is definitely worth the candle.
Positions and Prospects in Numbers
The volume of investments in the global esports market in 2023 amounted to $3.5 billion, with profitability in 2022 of $1.38 billion. The main sources of income look as follows: sponsorship – 60%, advertising – 20%, rights – 10%, merchandising and tickets – 10%.
From this big pie, Ukraine managed to bite off $25 million. The income from Ukrainian esports in 2022 amounted to approximately $10 million. It is forecasted that by 2025, this income may grow to $30 million.
The global esports market shows an annual growth rate of 15-20%. The Ukrainian esports market is growing even faster – about 25-30% per year. It is expected that the number of viewers of esports events in Ukraine will increase from 5 million in 2023 to 7 million by 2025.
