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Esports on verge of hypergrowth to $5bn plus gambling – EXECUTIVE SUMMARY Free Download

Revenue Forecast to 2024

This year esports has burst into mainstream public consciousness and this culminated in Fortnite’s World Cup in July, with an unprecedented audience size and a $30 million pot of prize money.

Today esports can make an individual player just as rich as a real world sports star and the Fortnite World cup peaked at 2 million concurrent views dwarfing all previous esports totals, and potentially makes companies involved richer still.

This has happened because esports has broken through in China and South Korea, and there is more to come from Asia Pacific and it is finally about to leave that core demographic of the ultra-young white and Asian male, as more females and other demographics get involved.

We found that esports revenue will leap from $900 million in 2018 to $5.05 billion in 2024 with revenues split between game publisher fees, sponsorship, media broadcasting rights, tickets and merchandise, tipping and advertising.

The revenue growth is accelerating ahead of the rate for acquiring new esports enthusiasts, which itself will go from 154 million in 2018 to 377 million in 2024. There is a rising revenue per fan.

For Pay TV operators that have yet to make a play in esports, the opportunities will come primarily through growth in casual viewing,  attracted by “sanitized” esports competitions with appeal beyond enthusiasts. There will be scope for traditional media firms to gain media rights and sell advertising. A key aspect of our forecast is that revenues from media rights, where broadcasters gain rights to broadcast tournaments, are set to climb more steeply than any other category of esports monetization over the next five years, increasing more than 12 times.

The one elephant in the room is esports betting, which in 2018 generated significantly greater revenue than all other categories combined. Although betting involves many esports fans and also presents opportunities to video service providers, it is a distinct sector outside the esports community or ecosystem that can to some extent be regarded as parasitic.

That said globally we predict esports betting revenues will increase to $5.7 billion over the forecast period driven, by Asia Pacific with China as the biggest market.

This report “Esports on verge of hypergrowth to $5bn plus gambling Revenue Forecast to 2024” breaks down each revenue stream regionally between North America, Europe, Asia Pacific and the rest of the world.

Who should read this report and what should they get out of it?

It is essential reading for anyone who wants to take their broadcast network or pay TV business into media rights for eSports, and gives a clear picture of where the marketplace is going and how rapidly it is expanding in each territory.

This report is critical to anyone involved in planning to leverage eSports which may be channel providers, broadcasters, pay TV operators  or equipment suppliers, software providers and investors, at C Suite level down to strategic marketing and planning.

This report will give you ;

Numbers you can drop directly into a spreadsheet for planning purposes and provide a full understanding of strategies you may adopt to get involved in the eSports revolution.

It will give you a sector by sector breakdown, and indicate the level of investment you will need to make to take advantage of eSports in your territory. It will also help you navigate the multiple revenue streams of eSports be they publisher fees, sponsorship, media rights, ticketing, merchandise, tipping or advertising.

Companies mentioned in this report:

ABC, Alibaba, Amazon, aXiomatic, Baidu, Disney, Douyu, ESL, ESPN, Facebook, Google, Huya, Intel, FIFA, Fortnite, HyperX, Mercedes Benz, MIBR, Modern Times Group, Monster Energy, Newzoo, Red Bull, Sky, Team Liquid, TenCent, Tinder, Twitch, WeChat, WhatsApp, YouTube

For more information contact:

Natalia Szczepanek (Client Relations and Marketing Manager): [email protected]

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Contents  2

Graphs and tables 3

Introduction  4

Esports revenue to grow five-fold by 2024 4

Esports revenue categories global snapshot 7

Principal revenue sectors: Sponsorship 9

Advertising 10

Media Rights 10

Tipping 12

Tickets and merchandise 13

Esports betting 14

Geographical revenue dimension

Europe – media rights to soar but advertising and sponsorship slowdown 14

North America – big gains across the board 16

China – media rights and revenues per fan drive explosive growth 16

Rest of Asia Pacific

South Korea saturates, as India’s unleashes pent up demand 17

Rest of World – driven by hot spots like Mexico and Brazil 18

Audience analysis 19

Audiences are more diverse than players 20

The streaming platforms 24

Conclusion 26

Rethink TV: forecasting disruption in video 27

Contacts 28

About Rethink Technology Research 29

 

Esports Global revenue by category to 2024 6

Media Rights by Geography 2024  6

Esports Revenue by Category  2018 – 2024 8

Media Rights by Geography 2018 11

Media Rights by Geography 2024 11

Tipping Revenue 2018 12

Tipping Revenue 2024 13

Esports betting revenue 2018 – 2024 14

Esports revenue by category Europe 2018 – 2024 15

Esports revenue by category North America 2018 – 2024 16

Esports revenue by category China 2018 – 2024 17

Esports Revenue Rest of AsiaPac 2018 – 2024 18

Esports fans by race/ethnicity 20

Esports audience % female 2018 – 2024 21

Esports audience by geography 2018 22

Esports audience by geography 2024 22

Esport serious fans 2018 23

Esport serious fans 2024 23

Esport platforms total unique monthly viewers 2018 – 2024 25

 

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