February 03, 2024

LCK Broadcast Cancelled in China After Gen.G Controversy

The South Korean League of Legends Champions Korea (LCK) is facing heavy backlash in mainland China following a Taiwan-related controversy that led to the suspension of broadcasts on Tencent's Huya live-streaming platform.

Despite its triumph at the Asian Games and World Championship in 2023, where South Korea took the competition to a whole new level, boosting their popularity and fame across the Asian gaming scene and securing two gold medals for their performance in Riot Games' League of Legends, the LCK is now grappling with both publicity and financial issues.

LPL Logo

T1, the LCK team backed by SK Telecom, achieved victory against China's Weibo Gaming in November, securing the annual championship of the LoL Worlds tournament and reinforcing Korea's status as a global esports powerhouse.

However, as the LCK started its spring season in 2024 and Huya, a Chinese video game streaming platform supported by Tencent Holdings, stopped the official Chinese-language broadcasts of the new season. This marks the first time LCK broadcasts have been interrupted in mainland China since 2018.

Riot Games Korea attributed the suspension to the lack of a broadcast rights holder in China, although industry insiders suggest it is linked to a recent controversy involving Gen.G.

In December, Gen.G caused outrage in China after referring to Taiwan as an independent country in a Facebook post. The situation escalated after Gen.G issued an apology reaffirming commitment to China's sovereignty but later retracted it, claiming neutrality on political views. This led to widespread criticism among both Chinese and Korean fans.

Ke "957" Changyu, a professional gamer-turned-commentator for the LoL pro league in China (LPL), stated on his personal streaming channel that stopping the broadcast was a result of the recent issues with Gen.G. A source in China's esports industry, speaking anonymously, confirmed that Gen.G’s case was a major reason for the suspension.

Riot Games and Huya have not responded to requests for comments on the broadcasting issue.

After the controversy, South Korea stands at a crucial moment that will heavily impact the global esports industry, boosted by robust government support for esports-related policies and infrastructure. The nation has cultivated an extensive talent pool across major esports titles, featuring legendary players like Lee “Faker” Sang-hyeok in League of Legends. Notably, professional teams enjoy backing from some of Korea's largest business conglomerates, including SK Telecom, KT, and Samsung.

After the broadcast was cancelled, many Chinese esports fans expressed their disappointment on social media. To access LCK content, Chinese fans have to resort to the English-language streaming channel on YouTube, which is not accessible under China’s Great Firewall without a virtual private network (VPN) service.

Some League of Legends esports fans remarked on the unfortunate impact of a single team's action, stating,

“It’s a pity that the move by a sole team had screwed the access of the entire Chinese fan group to the tournament.”

The suspension is set to deal a blow to LCK’s profits, as the Chinese market gave the LCK a major boost, leading to a loss of licensing fee revenue. The regional league has faced challenges in securing revenue growth, prompting a joint statement from affiliated teams on January 17, the opening day of the LCK Spring season. In the statement, teams expressed their concerns about financial sustainability under Riot Games Korea, highlighting the league’s growing viewership, performance, and fandom, which have not translated into increased business value over the past three years.

Worlds 2023 Finals

This financial dilemma extends beyond the LCK, impacting the global esports industry.

Zhang Shule, an analyst with CBJ Think Tank, noted that esports event profitability is often limited to sponsorships by game studios and hardware makers, lacking strong connections that might prompt companies in other product categories to boost the sponsorship opportunities for esports organizations.

As the controversy unfolds, Dylan Jadeja, CEO of Riot Games, announced a strategic move to eliminate 11 percent of the company's workforce, or around 530 jobs. This decision aims to streamline operations by trimming less-profitable businesses and refocusing on core titles. Jadeja emphasized the company's commitment to change and creating a more sustainable future, acknowledging that the impact on the Korean unit remains unclear. The esports industry is now navigating a new phase, facing uncertainties and significant transformations.

It’s impossible to predict how these changes will affect League of Legends esports, but Riot’s professional players are sailing a deep and murky sea of uncertainty, and we can only hope they make it to shore in one piece.

 

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