E-what?
eSports (short for Electronic Sports) is the name given to professional competitive gaming. In a nutshell, competitors play video games, while being watched by a live audience. Millions more watch the games online.
One major tournament, the 2016 League of Legends World Championship finals, attracted 43 million viewers.
Global esports revenues will surpass $1 billion in 2020 for the first time — without counting broadcasting platform revenues, according to market researcher Newzoo.
‘Esports’ impressive audience and viewership growth is a direct result of an engaging viewership experience untethered to traditional media,” says Newzoo chief executive Peter Warman. “Plenty of leagues and tournaments now have huge audiences, so companies are positioning themselves to directly monetize these Esports Enthusiasts. While this began happening last year, the market is constantly expanding on its early learnings.
Investment is the Driver
Endemic and non-endemic brand investments (media rights, advertising, and sponsorship), the report says, will make for 82 per cent of the total market. The highest-grossing individual esports revenue stream worldwide is sponsorship, generating $456.7 million in 2019. The fastest-growing esports revenue stream by far is media rights, it adds.null
Besides non-endemic brands, digital broadcasters and TV media companies have already started to compete for esports content and the extent to which these deals will generate a direct return on investment will impact the pace of media rights growth. Other ongoing developments that have high revenue potential include increased esports franchising, new content formats and premium passes, the success of mobile gaming, team profitability, and the success of new focus on professionals and streamers as brands.
Considering the current growth, Newzoo estimates the esports market will reach $1.1 billion by 2020. If any of these factors accelerate, a more optimistic scenario places revenue at $1.5 billion by 2023, it says.
The China Effect
As per the report, China will generate $210.3 million in revenue this year, overtaking Western Europe as the second-largest region in terms of revenue. The country is notable for the growing popularity of mobile esports, including casual titles.
„North America, meanwhile, will once again be the largest esports market, with revenue of $409.1 million. The report predicts that it will show strong growth toward 2022, reaching $691.1 million. The largest share of North America’s 2019 esports revenue will come from sponsorship, at $196.2 million. Meanwhile, media rights will contribute most to this growth and will remain the fastest-growing and second-largest esports revenue stream in the region.
Macarena 