Earlier this month, I was pleased to include in our Quarterly Activities Update that Mogul had delivered our maiden revenues (ASX Announcement, 1 May 2019). Mogul has definitely bloomed over the years and is still on the rise, so for us to reach this major milestone is an exciting time. And then last week, we secured $3.1m in a heavily oversubscribed placement which is one of the largest publicly announced raises in Australian esports history.
So with that in mind, this month I’d like to shed some light on how Mogul has embraced certain aspects of the booming esports industry and upcoming trends to create our multiple revenue streams. Our maiden revenues came from a combination of the introduction of monetised platform features and integration with payment providers, as well as shifting our focus to supporting teams, events and organisers across the world.
Monetised Platform Features
After the launch of our financial hub and integration with global payment providers in February this year, Mogul was able to launch a range of monetised features on the platform including paid entry tournaments and Mogul VIP, our subscription service.
In 2018, the esports industry began to see a rise of paid and premium content offered as well as an increase in prices players were willing to pay. This came in the form of not only battle passes and paid updates for various game titles, but in fact, for Twitch passes to access behind-the-scenes content, interviews and additional in-game angles for viewers.
Mogul too is able to offer premium content for players as we began to offer our paid services. Initially, we focused paid tournaments on the flourishing Apex Legends title and coincided this with the launch of our Australian Apex Open tournament in April. But now, we’re pleased to offer paid entry tournaments every day for a range of game titles and platforms. Players are able to enter specified tournaments which have a small market-specific entry fee, with the opportunity to share in large pre-defined prize pools. Prizes are awarded directly into the user's Mogul Wallet with payment managed by our global payment providers. From paid entry tournaments alone, Mogul receives revenue ranging from AU$0.10 to AU$10+ per tournament entry.
On top of this, Mogul VIP, our subscription feature, gives users access to additional premium content for US$4.99 per month. This includes VIP exclusive tournaments, 10% bonus on cash winnings, rewards and regularly updated content offerings. Offering this premium content to our audience, along with a specialised VIP icon on the Mogul platfrom, has been popular among our dedicated esports audience.
Partner Incentivisation Program
As you will have seen in our recent ASX announcements, we have shifted our focus to forming mutually beneficial partnerships. Mogul has made a new commitment to aligning ourselves with not only esports teams, leagues and organisers, but non-endemic brands, that have aligned goals with Mogul to share our financial success.
We are pleased to have signed the likes of AFL-team owned Legacy Esports, organising body Melbourne Melee, esports eco-system Avant and most recently, one of Europe’s top brands, Alliance. These partners all represent a different aspect of the esports industry which Mogul is able to offer technological and financial support to.
But what exactly do these partnerships look like? We have designed our partner incentivisation program with both parties in mind. The partner is rewarded financially for driving their audience, fans or followers to Mogul's paid tournaments, subscriptions or memberships, while Mogul benefits directly from increased paid user numbers. This aligns the interest of both parties to maximise participant numbers and community opportunities, encouraging partners to continue to refer players to our tournament platform.
Let’s take the Alliance partnership as an example. Alliance has an incredibly large dedicated social following of over 2.2 million across Twitter, Instagram, Facebook and Twitch. As part of their partnership with us, we will design a first-of-its-kind membership where players will get access to exclusive tournaments, large prize pools and access to the Alliance team for a monthly fee of $5 per person. Of this fee, we have entered into a 50/50 revenue share model and set initiatives to target 100,000 Alliance monthly subscribers by Q3 2020. Again, both parties are able to benefit financially from targeting dedicated esports players and fans with monetised premium content.
However, the rewards for teams and organising bodies don’t stop there. By teaming up with Mogul, partners are able to open the door to hosting their own branded tournaments they otherwise wouldn’t have been able to, offering them the chance to build out their specific esports community further. Alliance will, in fact, be the first esports team able to run a tournament series under their own brand with large cash prize pools on offer, giving them the chance to secure their esports legacy with us.
Partnering with Women in Esports
Earlier this month, Newzoo released statistics that 46% of all gaming enthusiasts are female, meaning there are more than one billion female gamers across the globe. With more diversity in the industry, esports is evolving and Mogul has embraced just that. A few weeks ago, we teamed up with the Australian Esports League to be the exclusive platform provider for Girl Gamer Oceania which is the biggest celebration of women in esports worldwide.
Mogul’s involvement in landmark events such as these not only show we continue to be ahead of these trends but continue to push the boundaries every day.
We are continually looking to broaden our partner-horizons to introduce new teams, brands and organisers to share success with. If you know anyone interested, please get in touch.