ggCircuit Twitchcast 10/21/2017 – Esports Theater, Zehn Masters & PUBG Server
Esports theaters was the main topic of this one hour podcast. We discussed our partnership with a theater in Peoria, Illinois to expand the eBash brand, the upcoming Zehn Masters tournament series, our new weekly evets with PUBS Servers and our latest addition to the global license pool, Lawbreakers.
ggCircuit Twitchcast – Esports Theater Partial Transcript (5 minutes)
We’ve been in the mode for a while of just helping other people get open. And so right now we’re in a project that’s kind of crossing over, it’s like a hybrid model where we’re going into a theater in a partnership with another group that is involved with the theater network here in the US and we’re taking all of the seats out of one of their screens, putting in eSport stations all facing the screen, putting in a new device that’s gonna split up multiple things on the actual movie screen and have running live for the players in the arena. And it’s gonna open as an eBash.
So the opportunity for us which is phenomenal to be able to expand very quickly in a lot of these theaters, is that the theater has a staff that’s already working, they have a great general manager that’s been in their theater for 13 years. He runs everything day to day. He has the scheduling. He controls the staff. He runs the payroll. They have a concession stand. They have a point of sale. They take money for tickets. They take money for concessions. All of that is all ready to go. They own the building. They are in control of the space. There’s no lease to sign. There’s no payroll to add. There’s no utility cost to worry about from our side. We’re just partnering on the space with them and just doing gaming in that one screen to see how this goes.
But there are 1,200 independent theater owners that are watching this project to see. Okay, what’s it gonna generate? Is it gonna generate, and this is the funny thing for us is that as we consult with center that are starting on their own, we’ve known this for years. The magic number’s $20,000 a month, $25,000 a month if you’re in a bigger market with a higher lease. You’ve gotta bring in that much money every month in those spaces to pay for rent and pay for people and pay for utilities and all of those things and make money. You’ve gotta be in that higher range.
Whereas in this theater, we’re talking about $10,000 to $15,000 a month in game time. If we do $10,000 a month in game time sales, they’re ecstatic. Like they’re bonkers for that number and in my mind, I’m like, that seems so low but we have to remember that that’s just additional profit for them so we’re splitting that with them. And we won’t share the percentages we’re splitting with them but they’ll get a check every month from this program. They actually take it in and they have to write us a check for our percentage. But they’ll make profit on that room that they weren’t making from taking 20% of movie ticket revenue because there’s just not enough movies and enough demand for people to fill 12 screens in their theater anymore.
So we will generate a lot more money for them than any movie in that one theater would have generated. The only downfall that the theaters have been a little hesitant on is like when they have blockbuster season, when there’s blockbusters out that take over five or six screens for one movie, all the other movies get moved over. But honestly I think they’re gonna figure out pretty quickly that they can tier those movies different days of the week or different times of the week in the same theater, still offer the same amount of movies and dedicate one or two screens seven days a week to eSports and eSports gaming.
So as part of this process, we’re really fine-tuning the model of this partnership idea. So they’ll offer eBash pricing, they’ll offer eBash packages like birthday packages, groups rates, events that we run. They’re gonna just piggyback off of all of that so we’re gonna be handing them the how to to run their center and their staff at the location will just follow our lead on, “Hey, Friday night is gonna be a Madden tournament and Saturday we’re gonna have this game release party with the Oculus Rift and Sunday we’re gonna have another tournament.”
But in the meantime, players can do the eBash VIP program, they can buy three hours for $12, like all of those packages, we just hand to them and they run with. And it will be an eBash location so eBash Peoria is where it’s gonna be in Illinois. It’s about three hours from here, third largest city in Illinois. I feel like right in the center of the state so it’ll be a great location to hold tournaments for the whole region. It’s pretty close to Chicago’s I think only an hour and a half away. St. Louis I feel like is maybe only a couple hours away. Indianapolis is only three hours away. So it really fills that middle of the Midwest void and I’ve never been more excited about the future for us because I feel like there’s no risk. We’re using our equipment. We’re buying some new equipment as part of this project to put in there. If we go six months and it doesn’t work, literally we take the equipment out and we put it in another location.