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This iTunes of Online Gaming & Esports Is About to Transform the $200B Video Gaming Industry

Stockhouse Editorial
1 Comment| January 4, 2022

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Click to enlarge
(Images via Swarmio Media Holdings Inc.)

Since streaming has become ingrained in our lives, it seems most of us have forgotten what “regular TV” is like, and telecom operators have felt this exodus. Telcos worldwide are struggling to make additional revenue from streaming content and are losing touch with the lucrative millennial audience.

The video gaming industry is on track to surpass $200 billion (USD) in 2023.[1] Television, movies, and even video games are relying heavily on streaming content. The shifting landscape opens an incredible new opportunity for telco operators thanks to a unique go-to-market strategy being deployed by a uniquely positioned global tech innovator on the Canadian Securities Exchange.

Telcos are facing the biggest challenge to their business from Over-the-Top (OTT) service partners.[2] According to Gartner, “Communications service providers (CSP) face faster revenue declines as more enterprise traffic leaks to the internet, driven by adoption of a wide range of cloud-based services. CSP product leaders must shift to an OTT service approach to find growth in new services and markets.”[3]

Edge computing provides a major assist to telcos to successfully compete with the big-league OTT media streaming service providers who deliver content over the internet via an app or website without the involvement of traditional media providers like broadcast, cable or satellite pay TV. Examples include HBO Now, Hulu, Netflix, Amazon Video, or YouTube.

Developed by Swarmio Media Holdings Inc. (CSE: SWRM, Forum), this patented Latency-Optimized Edge Computing (LEC) tech platform can enable these operators to build next generation solutions faster and future proof for their upcoming 5G networks.

This technology company is focused on providing an advanced end-to-end gaming and esports platform for telcos to monetize their subscribers. Using its LEC technology, Swarmio has engaged with several telcos that have launched its solution allowing their subscribers to access tournaments, engage in a localized gaming community, challenge friends and influencers and earn points that can be used to purchase gaming content.

Click to enlargeThis helps enable telcos to attract new customers, drive increased revenue from their existing customers, and better engage and monetize the millennial and digital native generations on their platforms.

In partnering with telcos, this offers a robust platform to their gaming customers across the globe and solves several problems at once. It lets telcos reach millennials and increase revenue, while solving connectivity issues for gamers, giving them a better and more stable user experience.

The immediate focus for Swarmio’s reach is entering the Asian, Latin American, Middle East and African markets – regions where telecom operators are desperate to engage new audiences and create new revenue streams. The company is already working with large operators in some of these areas, and likely will have more news to announce soon, as the company is looking to enhance its matrix of offerings and service jurisdictions.

To help advance its platform, the company recently completed a subscription receipt offering for gross proceeds of $6,266,500. In a news release talking about this placement, Swarmio’s Chief Executive Officer, Vijai Karthigesu (pictured below) explained that Swarmio is entering a key growth phase, and the team believes that now is the right time to take the company public to better position it to capitalize on the major global opportunity in the gaming and esports market.

“We believe that Swarmio's unique, SaaS-based turnkey gaming and esports platform provides telco operators with an ability to unlock the underlying value of their customers while also competing with dominant OTT providers such as Netflix, WhatsApp, Facebook and Google in the rapidly growing gaming space. Since launching the product, we have partnered with four major customers, specifically in Malaysia, Thailand, Sri Lanka and Bahrain.”


(Images via Swarmio Media Holdings Inc.)

Leading the team is Vijai Karthigesu, who achieved notoriety throughout the tech sector for his hand in building the backbone to Canada’s internet rollout. He has a deep expertise in the telco industry, especially in Canada. He is the founder of SpectraVoice, and co-founder of Cloud Dynamics Inc. Vijai also held senior technology leadership positions in multibillion-dollar public and private sector companies in Canada including Shaw, Rogers, Group Telecom, and the Ontario Ministry of Health (eHealth).

Swarmio’s co-founder and CTO, Sorin Stoian, is a leading technology expert with more than 20 years of experience in IT infrastructure, cloud software-defined technologies, agile software development, gaming network architectures and IT security. Sorin has wide experience in building and operating large cloud and data center infrastructures for multi-national companies such as IBM, Nokia, Moneris and Bell Canada.

The company’s Executive Vice President of Sales, Tesh Kapadia, is an accomplished sales executive with more than 25 years of proven sales experience worldwide. Tesh has been responsible for multi-billion dollar revenue streams with telecom operators globally.

Supporting this deep telco expertise is team talent on the engineering side, led by Vladimir Tcherkacheninov, Swarmio’s Chief Infrastructure Architect. Having built system architecture for the top five banks in Canada (such as RBC, BMO and TD), he has more than 20 years of experience in successfully delivering flexible, scalable enterprise and cloud platforms using innovative and pragmatic approaches to meet complex business goals and financial objectives. As the lead technical architect, he has implemented multimillion-dollar migration, datacentre build, and other high-profile infrastructure and application projects.

Recently, Swarmio announced new additions to its Board of Directors:

David Sharma, a global telecoms leader with more than two decades of executive and board experience. As a former telecom executive with Telus, he supported a multibillion-dollar profit and loss account responsible for the digital transformation of multinational enterprises telecom, cloud, and content companies. He has also been recognized with multiple global awards including Global Telecom Business Magazine’s Top 40 Under 40.

Larry Taylor, CPA, was named Board Chair and Chair of Swarmio’s Audit Committee. He is a former Managing Partner of Ernst & Young Management Consulting and brings significant experience in corporate governance and financial oversight. He has held several senior leadership roles including CEO Americas at global foreign exchange operator Travelex plc, and Canadian President at Dollar Financial Group.

With a broad management consulting experience, assisting various multinational and regional companies in transforming their organizations, he also has experience as an investor and independent board member. He also serves as Board Chair of several publicly traded companies including: VIQ Solutions Inc., and Spark Power Corp., as well as Audit Committee Chair for Drone Delivery Canada Corporation.

This team brings expertise from tech, finance, ecommerce, gaming and esports – the kind of talent amalgamation typically found in major companies like Google or Amazon. At this level in the Canadian space, it is an unparalleled depth of team talent.

Click to enlarge
(Swarmio has operations around the world offering a better experience for gamers across 4 continents. Images via Swarmio Media Holdings Inc.)

The games space may prove to be very lucrative. Video gaming is the largest entertainment industry in the world. According to Newzoo, the global games market is expected to generate $175.8 billion in 2021 and is on track to surpass $200 billion in 2023.[4]

Esports, a subset of the total video gaming market, is also growing rapidly. Analysts at Grandview Research recently pegged the global esports market value size at $1.1 billion (USD) and it is expected to expand at a compound annual growth rate (CAGR) of 24.4% to 2027. According to media estimates, there were more than 26 million monthly esports viewers this year, up +11% from 2020.

This strategy to become the go-to portal for any game developer or publisher to access untapped markets is solid. Swarmio Media Holdings Inc. presents an opportunity where investors should deepen their due diligence. In an interview with Stockhouse Editorial, CEO Karthigesu explained that once enough people sign on to the platform and it hits critical mass, Swarmio could become “The iTunes of the music industry for gamers.”

To keep up with the latest news from the company, and to find out more about its platform, visit swarmio.media/investors.


FULL DISCLOSURE: This is a paid article produced by Stockhouse Publishing.



[1] https://newzoo.com/insights/articles/global-games-market-to-generate-175-8-billion-in-2021-despite-a-slight-decline-the-market-is-on-track-to-surpass-200-billion-in-2023/
[2] https://www.forest-interactive.com/blog/what-is-ott-in-telecom/
[3] https://www.gartner.com/document/4007976?ref=algorightrec&refval=4002163
[4] https://newzoo.com/insights/articles/global-games-market-to-generate-175-8-billion-in-2021-despite-a-slight-decline-the-market-is-on-track-to-surpass-200-billion-in-2023/



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