SportsHero (ASX: SHO) has signed a three-year commercial agreement with Chinese esports game publisher Shanghai Fumin Sports and Culture Co Ltd, allowing it to use SportsHero’s proprietary esports prediction and tournament management platform (app).
The app will be used to market and promote game titles produced by Shanghai Fumin under the NetEase Games (NASDAQ: NTES, HKEX: 9999) brand.
Under the terms of the binding agreement, Shanghai Fumin will be required to actively promote and drive user growth through SportsHero’s Chinese app by engaging its own user base and activating its suite of social media assets.
Shanghai Fumin will also be responsible for introducing and delivering advertising and sponsorship opportunities for SportsHero prediction competitions.
The SportsHero app (including its artificial intelligence prediction competitions) will be promoted across NetEase game titles including Onmyoji Arena Pro League.
SportsHero obligations
SportsHero’s obligations under the agreement include the development and operation of the tournament management app and prediction competitions for Shanghai Fumin.
The company will collaborate on the design, development, maintenance, upgrading and redevelopment of prediction competitions and the user facing product.
It will also provide relevant tournament and registration management technology, including artificial intelligence predictors for esports tournaments available on the Shanghai Fumin mini program on WeChat.
All revenue generated from the agreement — including memberships, subscriptions, advertising, sponsorship and ecommerce — will be shared equally between both companies after costs and expenses have been deducted.
At the end of the first term, the agreement will be automatically renewed for another three years unless terminated by either party with three months written notice.
Largest esports publisher
Shanghai Fumin is one of China’s largest esports game publishers.
It has amassed a large following and experienced significant audience viewership growth for NetEase and its portfolio of clients which includes Tencent, Riot Games, Valve, EA Sports and Blizzard.
For NetEase Games, Shanghai Fumin provides complete esports operations, brand planning, content production and esports commercialisation services.
The company is also the exclusive tournament operator for Onmyoji Arena Pro League.
SportsHero said it was well positioned to benefit from the continued rapid revenue growth of the Chinese gaming sector, which is currently the largest esports gaming market in the world.