Esports Market by Revenue Streams Media Rights (Subscription & Online Advertisement) Global Forecast to 2023
The
esports market was valued at USD 926.3 million in 2018 and is expected to reach
USD 2,174.8 million by 2023, at a CAGR of 18.61% between 2018 and 2023. The esports ecosystem
consists of game publishers, event organizers, players/teams, content
broadcasters, and audiences and viewers.
The industry generates significant revenue
from streams such as media rights, which includes subscription and online
advertisement; tickets and merchandise; sponsorships and direct advertisements;
and publisher fees. The increasing popularity of video games and growing
awareness about esports are the major drivers for the esports market growth. The market for online games is
growing at a healthy pace owing to factors such as growing adoption of advanced
gaming technologies, changing entertainment preferences among consumers, elevating
income levels, and rising demand for mobile gaming. The increasing smartphone
penetration and better internet connectivity have led to rise in the number of
gamers at a rapid pace. The lack of standardization
in terms of players’ salaries and tournament authenticity would have a major
impact on the growth of the esports market in the future.
Product launches, product developments,
sponsorships, and events were the key strategies adopted by players to grow and
stay competitive in the market. In January 2018, ESL partnered with Micro-Star
International to sponsor all ESL One events to be held in 2018. ESL One Genting
2018 was the first event to be sponsored by Micro-Star International. Further,
in March 2018, Valve Corporation launched Dota Plus, a monthly subscription
service, for USD 3.99 per month. Besides product launches and developments,
sponsorships, and events, companies adopted the strategies of partnerships,
investments, acquisitions, and expansions. In March 2018, ESL partnered with
Caffeine.tv to broadcast its esports content, including live events,
highlights, replays, and ESL talk show, via Caffeine streaming platform.
Among esports revenue streams, media rights is expected to be the fastest-growing segment during
the forecast period. The growth in the revenue generation from the
trades of media rights is mainly attributed to the monetization of rights by
increasing the network of partners and distributors. In March 2018, ESL, the
esports company owned by Modern Times Group (Sweden), partnered with Social
Broadcasting Platform Caffeine to broadcast Intel Extreme Masters (IEM) World
Championship held in Poland.
APAC is the largest and fastest-growing market
for esports owing to the presence of key game publishers and event organizers
such as Tencent, Alisporst, and Nintendo. Further, the increasing investment
from sponsors and advertisers is fueling the demand for esports in the region.
The growth of this industry can be attributed to
the increasing number of esports competitions in the region. Asia has always
been an attractive market for the gaming industry, especially owing to the ease
of entry, compared to other markets. Moreover, a number of esports spectators,
sponsors, and brands from the western countries are increasingly investing in
the market in this region.
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