Enthusiast Gaming (TSX:EGLX)(NASDAQ:EGLX) operates in the digital media and entertainment industry. Enthusiast Gaming’s products and services fall into three principal pillars, which consist of media and content, entertainment, and subscription.
Enthusiast Gaming’s media and content revenue stream is composed of over 100 websites that are wholly owned or exclusively monetized by the company and contain news, reviews, videos, live streams, blog posts, tips, chats, message boards, and other video-gaming related content. Enthusiast Gaming has the ability to create valuable advertising space that can be sold on the company’s websites and video channels. Further, the company has significant ability to develop content rich digital media.
Image source: Getty Images
Valuable digital media properties
Enthusiast Gaming possesses a network of full and part-time content developers to ensure regular, interesting updates are made across the company’s digital media properties to reflect the newest developments in the world of video games. The gaming community is drawn to different aspects and forms of content on Enthusiast Gaming’s network of websites. Part of Enthusiast Gaming’s strategy is to acquire profitable video gaming websites and video properties with differentiating content from the company’s current portfolio. This provides valuable, relevant content for any gaming enthusiast.
For any publishing company, the key mission is to build a dedicated following of engaged visitors. Enthusiast Gaming has amassed a platform of engaged, lifestyle gamers that has become a leading advertising platform for brands targeting the gamer demographic. Enthusiast Gaming’s web platform generates over two billion page views per quarter, and the company’s video platform generates over seven billion video views per quarter.
Integrated advertising solutions
A majority of Enthusiast Gaming’s media and content revenue is driven by programmatic advertising across the platform. Enthusiast Gaming has built out a direct sales team to foster key relationships and drive revenue. The direct sales team is also responsible for developing long term clients looking for integrated advertising solutions across Enthusiast Gaming’s brands.
The digital media advertising revenue stream of Enthusiast Gaming’s business flows from the digital media publishing revenue stream. With content-rich digital media properties drawing billions of monthly page and video views, Enthusiast Gaming is able to sell valuable inventory on the company’s digital media properties. Enthusiast Gaming also acts as a representative for the sale of third-party inventory on websites.
Favourable profit-sharing arrangements
By combining the inventory in the company’s own network with third-party inventory, and in some instances, acting as an exclusive provider of advertising to third parties, Enthusiast Gaming gets access to exclusive sales opportunities through which it is able to command higher advertising revenues and negotiate favourable profit-sharing arrangements.
Online advertising revenue is determined by a number of metrics. Advertising revenues may factor in the number of individuals who view particular web pages or video properties in Enthusiast Gaming’s network of digital media properties, and how much time a user spends on a website or video property during each visit. Enthusiast Gaming has steadily grown the company’s network of digital media properties and has experienced fast growth in revenues. This growth is expected to continue.
