Esports is aggregating an almost inconceivably large global audience of cashed up and highly engaged digital natives and millennials, yet it remains a mystery to most business leaders. But given the huge potential, it is little wonder that established sporting codes see a lucrative greenfield opportunity and are opening their check-books. Which-50 investigates.
Global esports revenue is expected to reach almost $906 million this year, climbing to $1.65 billion by 2021, according to an annual report on esports by market researcher Newzoo.
The majority of revenue is generated by sponsorships and advertising, while media rights is the fastest growing revenue stream.
According to the Newzoo research, the global esports audience will reach 380 million this year, made up of 165 million esports enthusiasts and 215 million occasional viewers.
It was the promise of these kinds of numbers that drove Amazon’s 2014 acquisition of Twitch, an online service that streams games to millions of fans.
At less than a billion dollars in cash, that price now looks like a steal.
Categorized in: Esports News