Esports Observer: Revenues and viewers are growing, as is investor interest
A surge in esports investment is expected to come primarily from private equity and venture capital firms and from traditional professional sports teams and leagues, athletes, and celebrities. All of these types of investors have already made investments in esports.
Advertising and sponsorships are expected to drive the greatest portion of the industry’s revenue growth, followed by in-game purchases and media rights. Still, esports insiders worry about cheating and match-fixing. They are considering whether a small group of game developers has too much control and are maintaining a focus on compliance amid legal risks surrounding intellectual property rights, data protection, and players’ rights.
The 2019 Esports Survey was completed by 204 professionals, primarily from esports and traditional professional sports teams and leagues, media companies and agencies.
Strong investment signs for esports
Nearly half of respondents (47%) anticipate increased investment in esports from private equity and venture capital firms over the next year. That’s up from 39% in the 2018 survey, an indication that the sector is mature enough to draw an array of investors looking for big paydays.