5 ESSENTIAL KEY FACT ABOUT THE ESPORTS INDUSTRY



5 ESSENTIAL KEYFACTS ABOUT THE ESPORTS INDUSTRY

ESPORTS IS NOT JUST A TREND, IT IS HERE TO STAY

From ESPN launching a new vertical for specific esports coverage to Overwatch being the first franchised gaming league, the sports industry is rapidly changing right before our eyes. The esports industry is projected to reach at least 557 million viewers by 2020 and easily generate over $1.4 billion in revenue. As esports investors and game creators break new ground, keep an eye out for more ways fans can experience their favorite esports games as pop-ups, sports bars, esports arenas and casual esports watch parties become more common.

ESPORTS IS COMPLEX AND NOT A ONE-GAME-FITS-ALL SYSTEM

Unlike traditional major league sports where athletes play a single type of game, esports athletes are scattered across a variety of game types that each comes with its own nuances and audience types. It’s important to know that the term ‘esports’ encapsulates every professionally played games from mobile games that typically attract a younger audience to first-person shooter games that draw in a more male adult-skewed audience.

ESPORTS IS A WORLDWIDE ENTERTAINMENT PHENOMENON EXPERIENCING EXPLOSIVE GROWTH

While the epicenter of esports started in South Korea and across Asia, in the past 15+ years, it has quickly spread across the world. Industry experts predict global esports revenues to hit $905 million in 2018, an incredible 36% increase from 2017’s $655 million.
With a compound annual growth rate of 8.2 percent from 2016 to 2020, the esports industry is gaining ground across the globe with Asia, North America, and Western Europe charging ahead by capturing 85% of the global esports audience. In like manner, the estimated 13.5% YOY audience growth is attributed to the improvement of IT infrastructure in Latin America and the Middle East, game franchises, and an influx of young viewers around the world who view esports as a valid entertainment medium. 
As Asia maintains its stronghold with the biggest gaming audience, franchising and live events have placed North America as the top revenue-generating market, set to reach an impressive $345 million in 2018.

ESPORTS IS LEADING THE WORLD’S CHARGE TOWARDS MODERNIZED, LIVE-STREAMED ENTERTAINMENT

The allure of esports is its ability to connect the audience to the esports players, streamers and other fans in the community in real-time, all the time. With the likes of Twitch and other platforms to better support players and develop their fan communities, audiences are actively engaged for long periods of time (averaging 100 minutes per spectating session). 

ESPORTS ARENAS ARE THE APEX OF FAN EXPERIENCES 

To capitalize on gaming’s rise to mainstream entertainment, organizations are building arenas across the US for esports-specific competitions, events, and tournaments. And with these spaces comes new advertising opportunities for brands through live-event sponsorships, product placements, and prize money contributions. With the promise of firsthand experiential opportunities and high-energy live entertainment, 60% of esports fans reported explicit interest in attending a live event this year

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