AUG. 1, 2009 • Activison Blizzard is running into some resistance as it attempts to assert some control over South Korean professional competition when StarCraft II is released. In addition to having a say in television broadcast agreements, the publisher is said to be attempting to generate revenue from royalty fees. Those efforts are not sitting well with the Korean e-Sports Players Association KESPA, which grew out of the intense Korean player base for StarCraft, is in direct control of competitions and a major factor in broadcast contracts. Although Blizzard may be able to circumvent the ruling body in the area of broadcast rights, KESPA could decide not to put its competitions on those broadcasts. There are around 400 professional StarCraft players in South Korea who represent 12 clubs sponsored or controlled by major corporations.
Impact: The merger with Blizzard has left Activision Blizzard in a relative power position with the publisher’s mix of strong franchises has been resilient in a down economy. Sitting pretty above the competition often leads executives to overreach – in this case demanding tribute where once they might have been happy for extra publicity an active pro sports league can add to a franchise’s sales. Yet we well remember the animosity that Nintendo once engendered by requiring high royalties to allow third-party titles onto SNES and N64 cartridges. The question for Activision Blizzard is how much will it cost to secure the extra revenue to be gained in controlling Korean e-sports StarCraft competition.
