ESA Hopes Bigger E3 Will Permit “Restructuring” of Inflated Membership Fees

Over the last year, video game publishers’ lobbying group the Entertainment Software Association has lost a quarter of its members.  New financial data reported by Gamespot may shed some light on just why the defections have occurred.

Back in 2007 – at the demand of its member companies – the ESA scaled back its annual E3 show, reducing the number of attendees from more than 60,000 to around 5,000. Despite the downsized event pulling in nearly $15 million less than in 2006, the ESAʼs 2007 revenue dropped less then $1 million, thanks to hefty membership fee increases – 1700% hefty.
 
Dues collected for the year of the Santa Monica E3 (April 1, 2007 – March 31, 2008) rang up at $17.41 million; the prior year’s total was $4.47 million.  The year before that, the ESAʼs total income from member fees was just over $1 million. 
 
Although NCsoft has gone on record that its decision not to renew its 2009 membership with the ESA was not financially motivated, itʼs a good bet that for some of the memcos (including financially-battered Midway), money was indeed a big factor.
 
For its part, the ESA told Gamasutra that it’s revisiting its membership dues structure in addition to aiming for a bigger, better, and more profitable E3 2009.  Said ESA CEO Mike Gallagher (left):

The positive restructuring of the E3 Expo allowed us to revisit the ESAʼs dues structure.  It is our hope that this new model will make the ESA an attractive and accessible option for small and mid-sized publishers so we can more fully represent our industryʼs diversity.

-Reporting from San Diego, GamePolitics Correspondent Andrew Eisen

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