SportsHero (ASX: SHO) is set to capitalise on Southeast Asia’s booming esports market after it finalised a marketing partnership with Indonesian telecommunications company XL Axiata.

The two-year strategic alliance will allow SportsHero to market the “iGV Family Game Room Pass” cloud-based game-sharing experience across Indonesia, targeting XL’s share of an estimated 8.3 million PC gamers in the country.

SportsHero chief executive officer Tom Lapping said the collaboration would combine the company’s innovative gaming solutions with XL’s expansive network infrastructure to deliver a “unique, engaging and affordable experience” for customers.

Third-largest telco

XL Axiata is Indonesia’s third-largest telco, with a 12.4% share of the market and approximately 57.5 million customers.

For a subscription price of $6.30 per month, XL customers will get access to more than 200 video games on SportsHero’s world-class gaming platform using a direct carrier billing option to integrate the new charges into existing XL billing accounts.

The partnership, based on a revenue-sharing agreement with no further consideration payable, is forecast to significantly improve XL’s potential customer conversion.

SportsHero expects to realise a minimum 38% margin on gross subscription value, net of XL and iGV partner costs.

Exclusive rights deal

SportsHero secured a three-year exclusive rights deal with iGVault HK in November 2023 to promote and distribute products on the global iGV.com platform throughout Indonesia and Thailand.

With over 500 game titles, iGV.com has been seen by gamers in North America and Europe as a safe and reliable online trading platform for esports digital assets since 2006.

In September, SportsHero officially launched the “iGV Family Game Room Pass,” which offers a game-sharing experience with access to over 200 popular gaming titles including Call of Duty, Among Us, Counter-Strike 2, Elden Ring and Grand Theft Auto V.

Growing market

Indonesia’s growing PC gaming market is driven by a large and youthful population increasingly interested in competitive gaming.

The Indonesian government has been actively supporting the esports industry through initiatives such as the technology and innovation event INTI 2024.

Additionally, the availability of high-speed internet and investments in gaming infrastructure are helping enhance consumer accessibility and engagement.

Market research has shown that Indonesia’s strong cultural affinity for gaming and the rise of professional esports teams will position it to become a significant player in the global esports landscape.