Here are the latest headlines regarding how the protests around the killing of George Floyd are impacting the Los Angeles startup and tech communities. Sign up for our newsletter and follow dot.LA on Twitter for the latest update.
Today:
- TikTok addresses 'tough but fair questions' about treatment of black creators
- L.A. VC's react
- L.A.'s top health official: racism fuels health inequities
- L.A.'s music industry will shut down for 'Black Out Tuesday'
- Hollywood, streaming services nod to Black Lives Matter
- Snap and Twitter reportedly used by ill-intentioned protesters to organize theft
- Snap CEO talks reparations and heartbreak
- Airmap's Santa Monica headquarters destroyed by looters
- Santa Monica, Beverly Hills announce 1 pm curfews for business districts
TikTok addresses 'tough but fair questions' about opportunities for black creators on the platform
<img lazy-loadable="true" src="https://assets.rebelmouse.io/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yMzI4MTA2NC9vcmlnaW4uanBnIiwiZXhwaXJlc19hdCI6MTYxMTI4NDc0M30.F2EmQwLKpL0bqpvqRnKtfsESZGRp-fL7HNtQzPApv1I/img.jpg?width=980" id="f162f" class="rm-shortcode" data-rm-shortcode-id="d10c53cd90b55e4e7c6590db465caf9f" data-rm-shortcode-name="rebelmouse-image" /><p> TikTok sent a message out to "our black community" on Monday addressing what the company called "tough but fair questions" about whether the platform allows all creators the opportunity to have their content viewed.<br> </p><p> <a href="https://newsroom.tiktok.com/en-us/a-message-to-our-black-community" target="_blank">In a message to its black community,</a> Vanessa Pappas, TikTok's U.S. general manager and Kudzi Chikumbu, director of creator community, said "we hear you and we care about your experienced on TikTok. </p><p> "We acknowledge and apologize to our Black creators and community who have felt unsafe, unsupported, or suppressed. We don't ever want anyone to feel that way." </p><p> The company, which is owned by ByteDance, a Beijing-based internet technology company, said that on May 19 black creators and their allies changed their profile pictures and connected on the platform to speak out against how they felt marginalized on TikTok. Then, last week, "a technical glitch made it temporarily appear as if posts uploaded using #BlackLivesMatter and #GeorgeFloyd would receive 0 views." </p><p> TikTok said that the company understands that many assumed the bug to be an intentional act to suppress the black community's experiences and invalidate their emotions. It's unclear why TikTok wrote about the glitch Monday, or if had intended to do so before recent demonstrations in the aftermath of George Floyd’s death. A Minneapolis police officer pressed his knee into Floyd’s neck while he pleaded for his mother and to breathe.</p><p> The company, which has its U.S. headquarters in Culver City, said it is donating $3 million in honor of black creators to nonprofits that help the black community, which has been disproportionately affected by the effects of the COVID-19 pandemic. TikTok also said it is committing $1 million to fighting racial injustice and inequality. </p><p> TikTok said it will standing in solidarity on Tuesday by participating in Blackout Tuesday, turning off all playlists and campaigns on its "Sounds" page to observe a moment of reflection and action. The company said it is also investing in technology. and better moderation strategies with a more user-friendly appeals process. It's also establishing a creator diversity council and developing a creator portal to expand communication and opportunities. </p><p> "We know we have work to do to regain and repair that trust," the post said. </p> <pre class="redactor-script-tag" style="display: none;" async="" src="https://platform.twitter.com/widgets.js" charset="utf-8"></pre> <pre class="redactor-script-tag" style="display: none;" async="" src="https://platform.twitter.com/widgets.js" charset="utf-8"></pre><p> <em data-redactor-tag="em">-- Tami Abdollah</em> </p>Los Angeles VC's react
<img lazy-loadable="true" src="https://assets.rebelmouse.io/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yMjg0MTIxNC9vcmlnaW4uanBnIiwiZXhwaXJlc19hdCI6MTYwNjg3NTAxMH0.U1VUyLAY54twd9MfdUzdAJpJJSan3OtlEXdxM_MB_1A/img.jpg?width=980" id="54091" class="rm-shortcode" data-rm-shortcode-id="94a0002556c56ffba7075464172455ad" data-rm-shortcode-name="rebelmouse-image" alt="Women in tech " />Art by Candace Navi<p> It has been notoriously difficult for people of color to break into the insular world of venture capital, where who you know and previous success are are highly prized. <a href="https://tpinsights.com/2019/08/12/black-investment-firms-gain-ground/" target="_blank">Just 2% of investment professionals are black</a>, which in turn makes it hard for black founders to get funded. Here is a sampling of some of the reaction from the Los Angeles VC community, many of whom have offices in Santa Monica near protests and looting: </p> <script async="" src="https://platform.twitter.com/widgets.js" charset="utf-8"></script><script async="" src="<a href=" https:="" platform.twitter.com="" widgets.js"="" target="_blank" rel="noopener noreferrer"><a href="https://platform.twitter.com/widgets.js" target="_blank" rel="noopener noreferrer">https://platform.twitter.com/widgets.js</a>" charset="utf-8"> </script><script async="" src="<a href=" https:="" platform.twitter.com="" widgets.js"="" target="_blank" rel="noopener noreferrer"><a href="<a href=" <a="" target="_blank" rel="noopener noreferrer">https://platform.twitter.com/widgets.js</a>" target="_blank" rel="noopener noreferrer"><a href="<a href=" https:="" platform.twitter.com="" widgets.js"="" target="_blank" rel="noopener noreferrer">https://platform.twitter.com/widgets.js</a>" target="_blank" rel="noopener noreferrer"><a href="<a href=" https:="" platform.twitter.com="" widgets.js"="" target="_blank" rel="noopener noreferrer">https://platform.twitter.com/widgets.js</a>" target="_blank" rel="noopener noreferrer"><a href="<a href=" https:="" platform.twitter.com="" widgets.js"="" target="_blank" rel="noopener noreferrer">https://platform.twitter.com/widgets.js</a>" target="_blank" rel="noopener noreferrer"><a href="<a href=" https:="" platform.twitter.com="" widgets.js"="" target="_blank" rel="noopener noreferrer">https://platform.twitter.com/widgets.js</a>" target="_blank" rel="noopener noreferrer"><a href="<a href=" https:="" platform.twitter.com="" widgets.js"="" target="_blank" rel="noopener noreferrer">https://platform.twitter.com/widgets.js</a>" target="_blank" rel="noopener noreferrer"><a href="<a href=" https:="" platform.twitter.com="" widgets.js"="" target="_blank" rel="noopener noreferrer">https://platform.twitter.com/widgets.js</a>" target="_blank" rel="noopener noreferrer">https://platform.twitter.com/widgets.js" target="_blank" rel="noopener noreferrer">https://platform.twitter.com/widgets.js" charset="utf-8"> </script><p> <em>-Ben Bergman</em> </p>LA County public health director calls police violence "a public health issue"
<div class="rm-shortcode" data-rm-shortcode-id="e2f358b93cf1a7b7b3b7d4f6c23fe9ac"><div class="fb-video" data-href="https://www.facebook.com/video.php?v=3132778153449319" data-allowfullscreen="true"></div></div><p>Los Angeles County top public health official Barbara Ferrer linked the unrest that has rocked the region to the deep health disparities that black Americans experience. Ferrer, who has been providing somber daily updates on coronavirus deaths and its spread, called police brutality a public health issue that must be addressed.<br></p><p>"It's important to comment on the connection between these two concerns the death of a black man at the hands of police and the experience of COVID-19 in L.A. County," she said in starting her briefing. "We know that black Americans fare worse than other groups on virtually every measure of health status. And it has become all too common to blame this on individual behaviors, when in fact the science is clear, the root cause of health inequities is racism and discrimination."</p><p>"Science also tells us that lifetime stress associated with experiences of daily acts of discrimination and oppression, play a major role," she said. "It starts at birth with higher rates of black infant mortality and shockingly higher rates of maternal mortality among black women and extends to adulthood, when we see black residents in L.A. County experiencing earlier onset of heart disease, hypertension and diabetes and earlier deaths."</p><p>"When I report each week that we have seen elevated numbers of black deaths in this county due to COVID-19, I am reporting on the consequences of these long standing inequities. And it's not just the direct victim of violence, the person who's beaten, or shot or asphyxiated who pays the price for brutality. It is an entire community that lives with the fear that the next time, it could be them or their son or daughter neighbor or friend. It is a consequence of that fear that we are seeing when we report instance after instance of inequality and health outcomes," she said. </p><p>"As the department responsible for public health in L.A. County and in acknowledgement of our national association, the American Public Health Association, declaring that addressing law enforcement violence is a public health issue, this rush to justice has to be part of our prescription, as well. </p><p>Los Angeles county and city declared a 6 p.m. curfew on Monday. </p><p>-<em>Rachel Uranga </em></p>L.A.'s music industry will shut down for 'Black Out Tuesday'
<img lazy-loadable="true" src="https://dot.la/media-library/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yMzM2NTIwNC9vcmlnaW4ucG5nIiwiZXhwaXJlc19hdCI6MTY0NTgxNTE3M30.8Y-F6HTO8W0CPx8s3KrT7hRwb83Z4eCk5G85GYWHktQ/image.png?width=980" id="e1efa" class="rm-shortcode" data-rm-shortcode-id="395bddc54cde2e4a77da645d5ed20d77" data-rm-shortcode-name="rebelmouse-image" /><p> Many organizations in the music industry are pledging to close on Tuesday as part of a 'Black Out Tuesday' campaign. Participants include the three major labels: Warner Music Group, Sony Music and Universal Music Group, along with many of their associated sub-labels.<br> </p><p> The initiative started with a pop-up <a href="https://www.theshowmustbepaused.com" target="_blank">webpage</a> calling for the music industry to shut down on Tuesday, published by Jamila Thomas, a marketing executive at Atlantic Records (owned by Warner Music Group), and Brianna Agyemang, an artist campaign manager at Platoon (owned by Apple). </p><p> "It is a day to take a beat for an honest, reflective and productive conversation about what actions we need to collectively take to support the black community," the post said. "The music industry is a multi-billion dollar industry. An industry that has profited predominantly from Black art. Our mission is to hold the industry at large, including major corporations + their partners who benefit from the efforts, struggles and successes of Black people accountable… This is not just a 24-hour initiative. We are and will be in this fight for the long haul. A plan of action will be announced." </p><p> The post includes a list of links for suggested actions to take on Tuesday. </p><p> <a href="https://twitter.com/hashtag/TheShowMustBePaused?src=hashtag_click&f=live" target="_blank">#TheShowMustBePaused</a> has traveled widely through the music industry's social media. Santa Monica-based Interscope (owned by Universal Music) pledged to delay releasing new music this week. </p> <script async="" src="https://platform.twitter.com/widgets.js" charset="utf-8"></script><p> <span style="background-color: initial;">Other organizations have been posting messages of solidarity to their social media accounts including </span><a href="https://twitter.com/sonymusic/status/1267171054910349316/photo/1" target="_blank">Sony Music</a><span style="background-color: initial;">, </span><a href="https://twitter.com/ColumbiaRecords/status/1267164123680440320" target="_blank">Columbia Records</a><span style="background-color: initial;"> (owned by Sony), </span><a href="https://twitter.com/UMG/status/1267256132524838912" target="_blank">Universal Music</a><span style="background-color: initial;">, and </span><a href="https://twitter.com/AtlanticRecords/status/1266850797771505664" target="_blank">Atlantic Records</a><span style="background-color: initial;"> (owned by Warner).</span><br> </p><p> <a href="https://twitter.com/Spotify/status/1266727451029319682/photo/1" target="_blank">Spotify</a> and <a href="https://twitter.com/AppleMusic/status/1266940744356503557/photo/1" target="_blank">Apple Music</a> have also issued brief statements on their social channels.</p><p><em>— Sam Blake</em></p>Hollywood, streaming services nod to Black Lives Matter
<img lazy-loadable="true" src="https://dot.la/media-library/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yMzM2NTIwMS9vcmlnaW4ucG5nIiwiZXhwaXJlc19hdCI6MTY1MTA3MDYxM30.xZLAH8xHQPPhubNfjhkXPzcRGQfX0YO-efKO4nvE1fs/image.png?width=980" id="5ad4b" class="rm-shortcode" data-rm-shortcode-id="f21dfe8e913e6389f31db1ad549c2b2f" data-rm-shortcode-name="rebelmouse-image" /><p> Over the weekend, several streaming companies took to social media to show support for the peaceful protests. <br> </p> <script async="" src="https://platform.twitter.com/widgets.js" charset="utf-8"></script><p>Some streaming platforms have changed their social media profile names and descriptions to express solidarity, including <a href="https://twitter.com/hbomax" target="_blank">HBO Max</a> and <a href="https://twitter.com/Quibi" target="_blank">Quibi</a>. Other organizations with similar messages on their social media pages include <a href="https://twitter.com/NBCUniversal/status/1267481089431539720/photo/1" target="_blank">NBCUniversal</a>, <a href="https://twitter.com/Disney/status/1267224613152571393" target="_blank">Disney</a>, and <a href="https://twitter.com/hulu/status/1266913549512658946" target="_blank">Hulu</a>.<br></p><p> On Sunday, various Hollywood union leaders weighed in as well.<br> </p><p> SAG-AFTRA leaders Gabrielle Carteris and David P. White issued a statement. "The murder of George Floyd is deeply emblematic of a corrosive inequality and injustice at the heart of America," it began. "It's not enough to demand change. We must recognize that racism lives in our culture and only we can change that." </p><p> WGA West President David Goodman said: "As demonstrations continue today across America, our union stands with those who peacefully protest the racist, extrajudicial murders of George Floyd and other Black people...National outrage about bigotry, discrimination, and injustice is the only way we will ever see real change." </p><p> ViacomCBS <a href="https://twitter.com/CBSLA/status/1267559820787421185" target="_blank">announced</a> on Monday that several of its networks, including Nickelodeon, BET and CBS Sports Network, would go dark for 8 minutes and 46 seconds in tribute to George Floyd and "other victims of racial violence." </p><p><em>— Sam Blake</em></p>L.A.'s gaming companies express support for BLM
<img lazy-loadable="true" src="https://assets.rebelmouse.io/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yMzM0NjQ0OC9vcmlnaW4uanBnIiwiZXhwaXJlc19hdCI6MTY1MzcxNzA2M30.RZmGsnE7xfT0iSt7f47FiD7YJlOWtBMPSFD8m2mPMZc/img.jpg?width=980" id="c72e6" class="rm-shortcode" data-rm-shortcode-id="078c7039c95b61c89427ab9317e2de27" data-rm-shortcode-name="rebelmouse-image" />live.staticflickr.com <p> Several Los Angeles gaming companies have weighed in to express solidarity and sympathy with social activists. </p><p> Culver City-based <a href="https://twitter.com/JamCityHQ/status/1267552773232455680/photo/1" target="_blank">Jam City</a>, a mobile game developer founded in 2010, took to social media to stand with Black Lives Matter. Santa Monica's <a href="https://twitter.com/ATVI_AB/status/1267300339104968709/photo/1" target="_blank">Activision Blizzard</a> and West LA's <a href="https://twitter.com/riotgames/status/1267143804890513408" target="_blank">Riot Games</a> also posted on social media, as has startup <a href="https://twitter.com/EsportsOneInc/status/1266933026174324736" target="_blank">Esports</a> <a href="https://dot.la/esports-one-aims-to-provide-fantasy-sports-vibe-for-competitive-gamers-2645979049.html" target="_blank">One</a>. </p><script async="" src="https://platform.twitter.com/widgets.js" charset="utf-8"></script><p> Gaming and lifestyle company FaZe Clan, based in Hollywood, published an "honest message" to its fans:</p> <script async="" src="https://platform.twitter.com/widgets.js" charset="utf-8"></script><p> FaZe Clan is donating all profits from a retail campaign to a Memorial Fund created in George Floyd's name. </p><p> <em>— Sam Blake</em> </p>Snap and Twitter reportedly used by ill-intentioned protesters to organize theft; Snap CEO talks reparations and heartbreak
<img lazy-loadable="true" src="https://dot.la/media-library/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yMzM2NTA5OS9vcmlnaW4uanBnIiwiZXhwaXJlc19hdCI6MTYwNDk1MjE1MX0.y8y0C2M82toBgEbv4stcCfTp6jxNd7ZWRVU0lZ49yqY/image.jpg?width=980" id="823a5" class="rm-shortcode" data-rm-shortcode-id="ed739aec6f94f9e685fe42972f83f784" data-rm-shortcode-name="rebelmouse-image" />Photo by Tami Abdollah
<p>Twitter has long been the social media platform of choice for people protesting an abuse of power -- during the Arab Spring uprisings it proved crucially useful as a way to get around and deal with internet blackouts.</p><p>So too has it been used this past week, by groups organizing mostly peaceful efforts to express their anger at George Floyd's death. But as Twitter has upped its efforts to counter violence on its platform, notably by placing a warning label on a tweet by President Trump for glorifying violence, those with less peaceful intentions have also taken their messages to Snapchat to urge their contacts and the broader public to engage in violence, theft and property damage.</p><p>A Snap spokesperson said the company's <a href="https://www.snap.com/en-US/community-guidelines" target="_blank">Community Guidelines</a> "prohibit content that incites or glorifies violence, hate speech and discrimination of any kind. We have in-app reporting tools that Snapchatters can use to quickly report any content that may be in violation of our guidelines to our Trust and Safety team, who then reviews the reports and takes appropriate action."</p><p><a href="https://press.snap.com/we-stand-together" target="_blank">On Sunday evening, Snap CEO Evan Spiegel sent a letter to staff</a> in which he said "we simply cannot promote accounts in America that are linked to people who incite racial violence, whether they do so on or off our platform.</p><p>"Our Discover content platform is a curated platform, where we decide what we promote. We have spoken time and again about working hard to make a positive impact, and we will walk the talk with the content we promote on Snapchat. We may continue to allow divisive people to maintain an account on Snapchat, as long as the content that is published on Snapchat is consistent with our community guidelines, but we will not promote that account or content in any way."</p><p>The self-described camera company is currently protected from financial liability for such messages by Section 230 of the Communications Decency Act that that has been broadly interpreted by the courts over the years as shielding internet sites and apps from being financially liable for what user tweets, posts or generally publishes on their platforms.</p><p>Last week, <a href="https://dot.la/snap-tiktok-grindr-section-230-2646118991.html" target="_blank">Trump signed an executive order that may change all of that</a> by enabling federal regulators to punish social media companies for how they moderate content on their sites. Lawmakers and internet freedom advocates called the action illegal and improper under the First Amendment.</p><p>Such a change could have far-reaching impacts on Santa Monica-based Snap and smaller companies with an online presence that lack the budgets to moderate every single message or post on their apps.</p><p>Spiegel said he is "heartbroken and enraged by the treatment of black people and people of color in America." He called for the establishment of a diverse, nonpartisan "Commission on Truth, Reconciliation, and Reparations" to investigate the criminal justice system and take action on reconciliation and reparations.</p><p><em>— Tami Abdollah</em></p>Airmap's Santa Monica headquarters destroyed by looters
<img lazy-loadable="true" src="https://dot.la/media-library/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yMzM2NTA1NC9vcmlnaW4uanBnIiwiZXhwaXJlc19hdCI6MTU5OTU2OTczMH0.EeFKcd2_eYLnddHrlUPZJcv0MZk7BEE3xnqeOet3mXk/image.jpg?width=980" id="02494" class="rm-shortcode" data-rm-shortcode-id="c09777bd410d377ad598210d2c701fbf" data-rm-shortcode-name="rebelmouse-image" />Greg McNeal/Twitter
<p> Airmap's headquarters on Santa Monica boulevard near the Third Street Promenade was destroyed by looters Sunday night, according to co-founder Greg McNeal, who recounted the damage in a series of Twitter posts. The company, founded in 2015, is the world's leading airspace services platform for unmanned aircraft. </p> <script async="" src="https://platform.twitter.com/widgets.js" charset="utf-8"></script><script async="" src="https://platform.twitter.com/widgets.js" charset="utf-8"></script><p>AirMap co-founder and chairman Ben Marcus added this on Twitter: "Last night, the AirMap office in Santa Monica was consumed by fire. Thankfully, nobody was hurt. What hurts is the unending racism & injustice in America. We all must work harder to make our union more perfect. We're all brothers and sisters. Let's treat each other with love, respect, & dignity, and create opportunity for all who choose to make a positive impact." <br></p><p><em>— Ben Bergman</em> </p><script async="" src="<a href=" https:="" platform.twitter.com="" widgets.js"="" target="_blank" rel="noopener noreferrer"><a href="https://platform.twitter.com/widgets.js" target="_blank" rel="noopener noreferrer">https://platform.twitter.com/widgets.js</a>" charset="utf-8"> </script>Santa Monica, Beverly Hills announce 1 pm curfews for business districts
<img lazy-loadable="true" src="https://dot.la/media-library/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yMzM2NDg5NC9vcmlnaW4uanBnIiwiZXhwaXJlc19hdCI6MTYxNzI3NDcyN30.oX2HPoykVnc2p7yt-G-qSQuaUpCgxJHAvjGoszbcego/image.jpg?width=980" id="ca930" class="rm-shortcode" data-rm-shortcode-id="6015a8e6f6e784527f3f74b2c3ba04f9" data-rm-shortcode-name="rebelmouse-image" /><p>Santa Monica and Beverly Hills announced 1 p.m. curfews for their business districts on Monday, as shop owners and residents began sweeping the glass off the street and assessing the damage after a night of peaceful protests turned into fires, looting and vandalism over the death of George Floyd, who was killed by a police officer in Minneapolis. Citywide curfews will go into effect at 4 p.m. The chaos went to the heart of Silicon Beach, home to tech companies like Snap Inc and venture capitalists like Upfront Ventures, whose office overlooks the Pacific Ocean. </p><p>Long Beach issued a similar curfew. </p><p>"Sunday was one of the most distressing days in Santa Monica history," said Santa Monica Mayor Kevin McKeown in a statement. "We know better than to let the looters obscure the message of the protesters, who have indeed been heard."</p><p>Downtown L.A., Beverly Hills, Fairfax District and the Grove shopping center all got hit by looters over the weekend as police cars were set ablaze and the national guard was called in. News outlets reported that some chanted "eat the rich" as they marched along Rodeo Drive, one of the most expensive slices of commercial real estate in the region. </p><p>Floyd's death caused anguish in communities that have seen a number of black men die or be hurt by police officers who often suffer few consequences. Meanwhile, blacks and Latinos have higher arrest and incarceration rates. The deep disparity extends beyond the criminal justice system to education, housing and other areas.</p><p>And the frustration over it played out during the protests. Unlike the 1992 civil unrest after the release of Los Angeles police officers who beat Rodney King, demonstrations hit some of the wealthiest parts of the city. In 1992, looting and fires devastated South Central, further impoverishing an already economically disadvantaged area.</p><p>"Pretty wild to see the epicentre of this chaos at my office," Laurent Grill, an investor at Santa Monica based Luma Launch wrote on Twitter Sunday. "Quite a divide... on one side we had massive peaceful protests and 3 blocks away, people are looting & burning stores in my community. Makes me extremely sad." </p><p><em>— Rachel Uranga</em></p>From Your Site Articles
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As a math teacher, Julius Woehning can't ignore the numbers.
After climbing to 11th place out of 35,000 competitors in his fantasy sports league this Spring, the twenty-something German knew his chances of placing among the prize-winning top three were still slim. And even now that he's won the $50,000 grand prize, he's keeping his expectations modest for next season–mostly.
"I doubt I will win," Woehning told dot.LA, "but if my friends are playing next season, I definitely think I will beat them."
<p>The league that hosted Woehning's triumph was operated by Esports One, a venture-backed L.A-based startup that is staking its claim on the dynamic esports market by providing fans like Woehning a tech-enabled fantasy sports platform. It currently accommodates just one game, <em>League of Legends</em>, a hit multiplayer battle arena-style competition developed by L.A.'s Riot Games, but the startup plans to expand to another title by the end of this year.</p><p>Founder Matt Gunnin told dot.LA that he has over a decade of experience in esports. His recent entrepreneurial ventures have been built around computer vision technology that analyzes on-screen game activity to produce a robust flow of real-time gameplay data and statistics. Gunnin previously partnered with Twitch, a popular platform for watching esports, to provide viewers with analytics as they watched; and he has partnered with Riot Games to help in-game esports announcers spice up their commentary with data. </p><p>Recent forecasts for the esports market have proven overly optimistic. As media analyst Matthew Ball wrote in an essay last month, Newzoo, a gaming insights service, predicted in 2017 that esports would generate up to $2 billion by 2020 but has since reduced its forecast to just north of $1 billion. Morgan Stanley had a similar overly bullish view. In April, Newzoo further cut its 2020 forecast, citing setbacks due to cancelled live events from the coronavirus. However, the service raised its expected growth rate, assuming an enduring boost from the increased gameplay occurring amid the pandemic. </p><p>Esports One co-founder and Chief Operating Officer Sharon Winter is optimistic about the space, noting increased interest from major agencies in representing gamers, the entry of new brands as advertisers and partners, and the expansion by some classic fantasy sports operators into esports. </p><p>The numbers looked good for this past season which Woehning won. According to representatives from Esports One, Europe's professional <em>League of Legends </em>league reported this spring's playoffs saw a 71% growth in total hours watched compared to last spring's, and a 76% increase in peak viewership.</p><p class="shortcode-media shortcode-media-rebelmouse-image">
<a href="https://assets.rebelmouse.io/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yMzEyMTYzNC9vcmlnaW4uanBnIiwiZXhwaXJlc19hdCI6MTY0Njc3ODM3OH0.ZjlF8K4ijMaANZuVR8A_6boj9b8AUG1RMv7F_T8T4kU/img.jpg?width=980" target="_blank"><img type="lazy-image" data-runner-src="https://assets.rebelmouse.io/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yMzEyMTYzNC9vcmlnaW4uanBnIiwiZXhwaXJlc19hdCI6MTY0Njc3ODM3OH0.ZjlF8K4ijMaANZuVR8A_6boj9b8AUG1RMv7F_T8T4kU/img.jpg?width=980" id="cacfb" class="rm-shortcode" data-rm-shortcode-id="2b2359b2fa2e9bb33995f9908107b8da" data-rm-shortcode-name="rebelmouse-image" /></a>
<small class="image-media media-caption" placeholder="Add Photo Caption...">Riot Games Acquires Gaming Studio Hypixel</small>
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</p><h2>A sport by any other name...<br/></h2><p>In some ways, fantasy esports is just like any fantasy sport. Esports One competitors have a weekly budget for bidding on players for each week's games; the real-world players are assigned a dollar-value based on Esports One's data-rich algorithms. As the gamers accumulate stats – kills, assists, achieving objectives, etc. – those are reflected in the fantasy gamers' lineups. </p><p>Woehning explained that playing fantasy esports makes watching matches more exciting, especially when his favorite team isn't playing – a sentiment many fantasy football players will recognize (anyone up for Lions-Browns?). Jason Halsey, another Esports One competitor, from England, says that just like in traditional sports, esports are filled with exciting moments, intriguing matchups and upsets. </p><p>Esports differs from traditional sports, however, in some crucial ways. As Ball described, a developer like Riot Games <em>owns</em> League of Legends, whereas nobody owns basketball or football. This skews power dynamics away from third-party esports companies and toward the game developers. But Gunnin and Winter emphasize they've built Esports One to work in partnership with game developers, yet without being captive to their centralized power. </p><p>Another way that esports differs from regular sports, Gunnin says, is that viewers can more easily see themselves doing what the professionals do. "But if you can't slam dunk, you're out of luck," he explained. As a result, Gunnin said Esports One strives to make its fantasy gameplay more like playing the game itself. </p><p>The startup's founders also highlight esports' somewhat "cliquey" nature, and how they accordingly aim to cater their platform toward upholding a sense of camaraderie. Halsey, the British gamer, praised the platform's responsiveness to user input. </p><p>Esports One has raised about $4 million to date. In the future the league will remain free to access, according to the company, but it plans to grow its revenue streams into premium subscriptions and event passes. Beyond expanding into another game title, the company also hopes to move beyond Europe and North America into other regions. </p><p>Los Angeles seems a good home base from which to do so. Two major studios, Activision Blizzard and Riot Games, are based here. And Kevin Rosenblatt of ESL Gaming, an international esports firm specializing in live events with an office in Burbank, told dot.LA that the region has become a "mecca" for esports, thanks to its history of production expertise, a rich ecosystem of firms and brands, and a talented labor pool. </p><p>As Esports One's summer season approaches, Woehning still hasn't decided what he will do with his spring winnings. The math teacher evidently understands compound interest and has plans to save it.</p><p>---</p><p><em>Sam Blake covers media and entertainment for dot.LA. Find him on Twitter @hisamblake and email him at samblake@dot.LA </em><br/></p>
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Riot Games closed its acquisition of game developer Hypixel Studios on Thursday, the Los Angeles-headquartered firm announced in a statement. Deal terms were not disclosed.
Riot was founded in 2006 and released its flagship title League of Legends in 2009, which the company reports is the "most-played PC game in the world and a key driver of the explosive growth of esports."
<p>Hypixel was founded in 2018, with Riot part of the initial investment group. The young development studio now boasts over 40 developers, currently at work on its debut game, Hytale. Described as a combination of a "creative sandbox" (á la Minecraft) and a "roleplaying game," 2.5 million people have reportedly signed up for the beta version, which does not yet have a release date, per a company representative. Hypixel has stated it expects Hytale to be playable by 2021. The game's trailer on YouTube has nearly 56 million views.</p><p class="shortcode-media shortcode-media-youtube">
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<small class="image-media media-caption" placeholder="Add Photo Caption...">Hytale - Announcement Trailer</small>
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</p><p>"Over the last 18 months," said Riot Games President Dylan Jadeja in the statement, "we've been fortunate to advise Hypixel Studios as they build toward their vision for evolving a game genre that reaches an incredibly diverse range of players around the globe."<br/></p><p>"As development kicks into high gear," said Aaron Donaghey, Hypixel's new CEO, "we'll benefit from Riot's resources, expertise, and experience while maintaining the operational independence that has enabled our success so far." </p><p>Things are certainly looking rosy in the gaming industry. New Zoo, a gaming analytics service, pegs the 2020 global games market at over $160 billion and forecasts nearly $190 billion by 2022. Gaming has climbed during the coronavirus crisis, too; last month Verizon reported a 75% increase in gaming among its customers in the first week following widespread lockdowns. As for esports, global revenues are expected to surpass $1 billion this year, according to New Zoo, and reach nearly $1.6 billion by 2023, a 15.5% compound annual growth rate from 2018.</p><p>Earlier this week the Washington Post reported that Riot will oversee the esports component of its second AAA game, Valorant, in a less centralized way than it has with League of Legends. Instead, said the report, the "gaming community" will take on an active role. Riot did, however, issue certain guidance, including standards for prize money and advertising in tournament play.</p><p>Not all video games are ripe for esports. One industry source told dot.LA that, "The popularity of an esport is going to be inextricably tied to the game itself. The majority of your esports watchers are either actively playing the game or are lapsed players." </p><p>In addition to popularity, the source said that other key factors that determine whether a game will find success in esports include whether it is free to play, requires some level of skill, and is team-based. Given its structure, Hytale is unlikely to hightail its way into the world of esports.</p>
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