The eSports Industry to Date - The Drivers Behind Current and Future Growth Emily Souza Client Director San Francisco - Newzoo
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The eSports Industry to Date Emily Souza
Client Director
The Drivers Behind Current and Future Growth San Francisco
9 SEPTEMBER 2015 | SAN FRANCISCO
© 2015 Newzoo www.newzoo.com
Emily Souza
Client Director
San Francisco
9 SEPTEMBER 2015 | SAN FRANCISCO
© 2015 Newzoo www.newzoo.com
Emily Souza
Client Director
San Francisco
9 SEPTEMBER 2015 | SAN FRANCISCO
© 2015 Newzoo www.newzoo.com
Weekend of 22/23 August Emily Souza
Client Director
Another Landmark Moment in Esports History San Francisco
ESL ONE COLOGNE LCS NORTH AMERICA FINALS
CS:GO LEAGUE OF LEGENDS
LANXESS ARENA, COLOGNE MADISON SQUARE GARDEN, NYC
>100 >50
THOUSAND MILLION
OGN MASTERS
LCS EUROPE FINALS
LEAGUE OF LEGENDS
ATTENDEES VIEWERS HEARTHSTONE
HOVET ARENA, SWEDEN YONGSAN ESPORTS STADIUM, SEOUL
9 SEPTEMBER 2015 | SAN FRANCISCO
© 2015 Newzoo www.newzoo.com
© 2015 Newzoo www.newzoo.com
What’s Special? What’s Special?
$1.2M Per Player is Prize Pool $16M Was Crowd
more than the $18M Funded by $2.50
2014 Soccer World of every $10.00
Cup 3rd Place Prize donation, making
Money. Winning Team Valve $54M
$6M
New Direct Esports-Related Revenue Streams
© 2015 Newzoo www.newzoo.com
ORIGINAL ESPORTS DRIVER: GET PEOPLE PLAYING
1,000,000 200,000
180,000
160,000
140,000
900,000
120,000
100,000
80,000
800,000
60,000
40,000
20,000
700,000 -
Average Daily DotA 2 Players Average Weekly DotA 2 Players DotA2 Twitch Viewership
SOURCE: GLOBAL GROWTH OF ESPORTS REPORT PREMIUM | Q3 2015 UPDATE
© 2015 Newzoo www.newzoo.com
Sizing The Esports Economy
Without inflating the potential amidst all the buzz 9 SEPTEMBER 2015 | SAN FRANCISCO
© 2015 Newzoo www.newzoo.com
Emily Souza
Client Director NEWZOO
emily@newzoo.com
THESE COMPANIES CURRENTLY SUBSCRIBE TO NEWZOO’S SERVICES
The Experts On All Things Games.
We are an innovative global market research and predictive analytics
firm with a primary focus on games. We provide our clients with a
mix of market trends, financial analysis, revenue projections,
consumer insights, data modelling solutions and predictive analytics
services across all continents, screens and business models. Newzoo
works for the majority of top 25 public companies by game revenue
globally, many independent game developers as well as leading
global hardware and media companies.
SAN FRANCISCO AMSTERDAM SHANGHAI
© 2015 Newzoo www.newzoo.comEmily Souza
Client Director NEWZOO
emily@newzoo.com
THESE COMPANIES CURRENTLY SUBSCRIBE TO NEWZOO’S SERVICES
The Experts On All Things Games.
We are an innovative global market research and predictive analytics
firm with a primary focus on games. We provide our clients with a
mix of market trends, financial analysis, revenue projections,
consumer insights, data modelling solutions and predictive analytics
services across all continents, screens and business models. Newzoo
works for the majority of top 25 public companies by game revenue
globally, many independent game developers as well as leading
global hardware and media companies.
SAN FRANCISCO AMSTERDAM SHANGHAI
© 2015 Newzoo www.newzoo.comEVOLUTION OF THE ESPORTS TREND | 2013
“PC gamers have grown to expect a high
quality game, with the ability to invest
oneself long term, due to persistent
profiles, online worlds, a way to play with
friends etc. PC game developers have
always understood that and delivered the
type of experience that keeps gamers
playing their games for month even years
at a time.” - Donovan Duncan, VP
Marketing, Curse Inc.
© 2015 Newzoo www.newzoo.comEVOLUTION OF THE ESPORTS TREND | 2014
“As one of the fastest growing sports in the world, eSports
only lacks exposure and deeper understanding. Newzoo has
been significant help to eSports in that regard. Their reports
have the shaped initial understanding of the market as their
information is clear and allow deep insight in a rather
unexplored business.” - Fabian Mallant, Manager Unicorns
Of Love
© 2015 Newzoo www.newzoo.comEVOLUTION OF THE ESPORTS TREND | 2015
“Publishers will want to take a strategic
look at their video sharing
infrastructure based on the
convergence of games and video. The
business opportunities are just
beginning to emerge, but clearly this
new surge in gaming creativity will
demand tremendous scalability and
innovative solutions.” - Anne
Blanchard, Gaming Solutions,
Limelight Networks,
© 2015 Newzoo www.newzoo.comThe eSports Economy Today
Companies, Audience, Revenues 9 SEPTEMBER 2015 | SAN FRANCISCO
© 2015 Newzoo www.newzoo.comTHE ESPORTS ECONOMY
e.g. e.g.
e.g.
e.g.
e.g.
© 2015 Newzoo e.g.
© 2015 Newzoo www.newzoo.comESPORTS AUDIENCE AND REVENUES IN 2015
Revenues Prize Money KEY FACT
2015 | Esports| Global, NAM , APAC 2014 vs 2015e | Esports | Global
$71M Of all eSports
+97% YoY viewers
40%
37% GLOBAL 34%
$252M $36M 2015e
+30% YoY +82% YoY
NAM APAC
$93.2M $85.2M 2014
JAN-MAY
2014 2015
JAN-MAY does not play
+32% YoY 29% +28% YoY
$7.9M $15.7M the games
themselves
Audience | 2015 | Esports | Global
Esports Enthusiasts Occasional Viewers
113M
+27% YoY Spectator Sport
17M 25M 70M 147M
Source: Newzoo, The Global Growth of Esports:
(>once a month) (>once a month) Trends, Revenues & Audience Towards 2017
© 2015 Newzoo www.newzoo.comHUGE GROWTH POTENTIAL FOR A VALUABLE AUDIENCE
ESPORTS ENTHUSIASTS ARE A VALUABLE TARGET GROUP IN TERMS OF DEMOGRAPHIC PROFILE & ARE BIG DIGITAL MEDIA SPENDERS
© 2015 Newzoo | Source: Global Growth of Esports Report Premium
53% 30%
eSports Sponsors
Have a Are
full-time job female
vs. 37% of the total population vs. 48% of all gamers
30% 55%
Is in the high Is between 21
income bracket and 35 years old
vs. 22% of the total population vs. 33% of all gamers
© 2015 Newzoo www.newzoo.comOFFERING ENTERTAINMENT ACROSS ALL SCREENS
Device used to eSports Enthusiasts Occasional Viewers Total Population
That watch online video That watch online video That watch online video
watch online video 120.7 Million
10.1 Million 13.0 Million
United States
34%
of Esports enthusiasts use a tablet to
watch online video content versus 22%
for the average American aged 10-65
© 2015 Newzoo © 2014 Newzoo, Graph generated in and exported from the Newzoo Data Explorer www.newzoo.comSNEAK PREVIEW ESPORTS QUARTERLY UPDATE
2014-2018 CAGR
+38.9%
Biggest Audience KPI Growth: Occasional Viewers $520M
Becoming True Esports Enthusiasts
YoY GROWTH
$452M
YoY GROWTH +43.4%
+29.6%
$278M NEW
$252M Q3
$194M NEW UPDATE
Q3
UPDATE
2014 2015e 2017e
SOURCE: GLOBAL GROWTH OF ESPORTS REPORT PREMIUM | Q3 2015 UPDATE www.newzoo.com
© 2015 NewzooIT IS EASY TO OVERESTIMATE THE MARKET ….
2009: Korea’s Esports Scene Takes a Blow 2014: US & China Lead
$71.0Me
Legislations in South Korea implementing bans and curfews Korea has never fully
on gaming, a feud between the Korean Esports Association recovered, rendering
and Blizzard, and the falling popularity of Starcraft the US today’s #1 in
contributed to the dip in prize money in South Korea
between 2008 and 2012. Since then, esports broadcaster
the accelerating
esports market, with
+97%
MBC was discontinued and OnGameNet is a much smaller China close on its YoY
operation whose content is no longer broadcasted on TV …. heels ....
In 2007, $36.0M
MBC Game and OnGameNet -48%
reportedly made $200M in YoY $19.8M
esports revenues, mainly
through broadcast TV $13.1M
$9.7M
$6.1M $6.4M $3.5M $5.2M
$3.6M $4.4M
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015e
Source: Newzoo, The Global Growth of Esports:
Trends, Revenues & Audience Towards 2017
© 2015 Newzoo www.newzoo.comBetting & Fantasy Leagues
Where there is competition, there is betting… 9 SEPTEMBER 2015 | SAN FRANCISCO
© 2015 Newzoo www.newzoo.comESPORTS BETTING ALREADY HOT
EXAMPLES OF START-UPS AND TRADITIONAL FORCES JUMPING ON THIS GROWING NICHE
© 2015 Newzoo | Source: Global Growth of Esports Report Premium
Eilers Research estimates:
$250 million now
eSports is Pinnacle’s
7th Biggest
market in terms of
volume, bigger than
Golf & Rugby
© 2015 Newzoo www.newzoo.comSPECIALIST STARTUPS ARISE: BETTING & FANTASY LEAGUES
Eilers Research estimates:
$23 billion (!?) in 2020.
© 2015 Newzoo www.newzoo.comGOOD NEWS: ESPORTS ENTHUSIASTS LIKE A BET
PLAYING FOR REAL MONEY IN ONLINE CASINO’S | US | 2015 BETTING/WAGERING ON REAL-TIME EVENTS (E.G. HORSE/SPORTS) | US | 2015
© 2015 Newzoo | Source: Global Growth of Esports Report Premium
33% Of Esports Enthusiasts Already is Your Client, vs 15% for Gamers and 8% for All.
© 2015 Newzoo www.newzoo.comeSports Versus Sports
Does it make sense to compare? 9 SEPTEMBER 2015 | SAN FRANCISCO
© 2015 Newzoo www.newzoo.comSPORTS & GAMING AUDIENCES EQUAL
THE NUMBER OF GAMERS COMPARE WELL WITH SPORTS FANS, ESPORTS COMPARABLE IN SIZE AS INDIVIDUAL SPORTS
© 2015 Newzoo | Source: Global Growth of Esports Report Premium
All All Individual Esports
Sports Gamers Sports Enthusiasts
vs. vs.
2.2Bn 2.1Bn
1.7Bn 151M
1.6Bn 145M
94M 89M
© 2015 Newzoo / Repucom
© 2015 Newzoo / Repucom
2014 2014 2014 2017 2014 2014 2014 2017
Sports Active in Gamers American Ice Esports
Fans Sports Football Hockey Enthusiasts
© 2015 Newzoo www.newzoo.comTOWARDS A $1BN ESPORTS ECONOMY
REVENUES PER ESPORTS FAN COMPARED TO THOSE OF SPORTS SHOWS POTENTIAL
© 2015 Newzoo | Source: Global Growth of Esports Report Premium
2014 Revenues/Fan Esports Growth Scenarios
Global Revenues Divided by Fans Based On Annual Revenue per Enthusiast
All $3.0Bn
Sports Alternative
$56 Optimistic TOTAL ESPORTS
REVENUES $15
Scenario
Individual
$1.1Bn
Sports $1Bn
$7 $5
$20 Report AVERAGE
$1.0Bn
REVENUE PER
Scenario ENTHUSIAST
$3
$3
© 2015 Newzoo / Repucom
$2
$2
$0.5Bn
Esports
© 2015 Newzoo / Repucom
$2 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
© 2015 Newzoo www.newzoo.comeSports Pace of Growth
Overarching trends push esports to maturity 9 SEPTEMBER 2015 | SAN FRANCISCO
© 2015 Newzoo www.newzoo.comESPORTS FUELED BY HUGE CONSUMER TRENDS…
NEWZOO REPORTS
“Power to the People” | “The Consumer As Producer”
2015
EXPERIENCE CREATE
MOVIES/GAMES ART/DESIGN
Made by “professionals” PRO PRO Made by “professionals”
CONSUMER GENERATED Enabling Platforms & Tools
CONTENT & DIRECT Curse, Twitch, YouTube
CONSUMER EARNINGS Channels, Fundly,
“POWER TO Instagram …
THE PEOPLE”
© 2015 Newzoo
ADVERTSING/MAIL
SHARE PRO Made by “professionals”
© 2015 Newzoo www.newzoo.com… AND MANY FACTORS DETERMINE PACE OF GROWTH
More Genres Competition Regulations Alignment of Traditional
& Geographic Depth & Content Rights & Digital Media
© 2015 Newzoo www.newzoo.comWHILE WE SORT THIS ALL OUT….
15TH OF JULY 2015 10TH OF AUGUST 2015
$20,000 PRIZE MONEY $26,000,000 IN FUNDING
© 2015 Newzoo www.newzoo.comYOU CAN COUNT ON US TO KEEP TRACK.
Emily Souza
Client Director
emily@newzoo.com
FULL 68-PAGE REPORT AVAILABLE NOW. PREMIUM
SERVICE INCLUDES QUARTERLY UPDATES. NEXT
UPDATE: 15 SEPTEMBER
www.newzoo.com/esportsreport
© 2015 Newzoo www.newzoo.comYou can also read
