the esports economy: trends, audience & revenue towards 2017
TRANSCRIPT
The eSports Economy Trends, Audience and Revenue
Growth Towards 2017 Peter Warman, CEO Newzoo
eSports is about being the best …
2
3
eSports is about entertaining crowds…
eSports is about winning…. and…
4
eSports is about winning…. and… betting
5
What and where is this?
6
What and where is this?
7
What’s Special?
$1M Per Player is the same as the
World Cup 3rd Place
Prize Money. Up 6X YoY.
What’s Special?
$8M Was Crowd Funded by $2.50 of every $10.00 donation, making Valve $24M
$10M Prize Pool
$5M Winning Team
BROUGHT BY BOUGHT BY
$1BN DEAL
The eSports EcoSystem
8
e.g.
e.g.
e.g.
e.g.
e.g.
e.g.
© 2015 Newzoo
Streaming (game) content
9
Game(r) content rules Youtube
10
1 Minecraft 2 Call of Duty 3 Grand Theft Auto 4 Angry Birds 5 Super Mario 6 League of Legends 7 FIFA 8 Halo 9 World of Warcraft
10 Battlefield
Based on number of views (all-time)
Top 20 Game Franchises On
Source: 2014 Octoly
11 Assassin's Creed 12 Final Fantasy 13 Mortal Kombat 14 The Elder Scrolls 15 Team Fortress 16 Legend of Zelda 17 Dota 2 18 Counter-Strike 19 Left 4 Dead 20 Need for Speed
New monthly ranking by
Subscribers
93%-99% of game views involve consumer-generated content
Generated 37% of top 20 game views
Media in 2005
11
PRO PRO
PRO
CGC “PROSUMER”
2005
ART/DESIGN Made by “professionals”
MOVIES/GAMES Made by “professionals”
ADVERTSING/MAIL Made by “professionals”
EXPERIENCE CREATE
SHARE
Approximately 1% of consumers are “prosumers”
Media in 2015
12
SHARE
PRO PRO
PRO
CONSUMER GENERATED CONTENT & DIRECT
CONSUMER EARNINGS “POWER TO
THE PEOPLE”
ART/DESIGN Made by “professionals”
MOVIES/GAMES Made by “professionals”
ADVERTSING/MAIL Made by “professionals”
Enabling Platforms & Tools Curse, Twitch, YouTube Channels, Fundly, Instagram …
2015
© 2015 Newzoo
EXPERIENCE CREATE
Everyone Creates and Shares Unique Experiences
13
14
eSports audience levels of engagement
15
Occasionally watches professional and amateur competitive gaming
Regularly watches professional and amateur competitive gaming
Watches & sometimes participates in (amateur) championships
Watches & regularly participates in (amateur) championships
esports Enthusiasts Occasional Viewers
Source: Newzoo Global esports Audience Model
Of all eSports viewers around 40% does not play the games themselves
Global eSports Audience per Type
The Value of eSports Enthusiasts
16
53% Have a
full-time job vs. 37% of the total population
30% Is in the high
income bracket vs. 22% of the total population
41% Owns an
iPad vs. 29% of the total population
29% Has a headset
budget over $100 vs. 13% of all gamers
2014 US DATA
eSports Sponsors eSports Enthusiast Profile
Global eSports Audience Growth
17
FREQUENT VIEWERS / ENTHUSIASTS
OCCASIONAL VIEWERS
CAGR: +20% 2012-2017
Source: Newzoo Global esports Audience Model
This year, the number of eSports Enthusiasts will surpass 100 million
eSports Enthusiasts & Growth
18
54% of eSports Enthusiasts are from Asia
Revenue Streams Comparable to Sports
19
Merchandise, Licensing & Tickets
Media Rights
Online Advertising
Sponsorships
Game Publisher Investment
Source: Newzoo Global esports Revenue Model
Gaming as a whole compares well to sports: Sports fans: 2.2Bn, Gamers: 1.7Bn (2.1Bn in 2017) Sports Revenues: $124Bn, Game Revenues: $83.4Bn ($107Bn in 2017)
eSports comparable to individual sports
20
94M 89M FANS
Will revenues also compare to IceHockey?
21
94M 89M
e.g.
e.g.
e.g.
e.g.
e.g.
e.g.
© 2015 Newzoo
eSports is just the tip of a huge iceberg
SHARE
PRO PRO
PRO
CONSUMER GENERATED CONTENT & DIRECT
CONSUMER EARNINGS “POWER TO
THE PEOPLE”
ART/DESIGN Made by “professionals”
MOVIES/GAMES Made by “professionals”
ADVERTSING/MAIL Made by “professionals”
Enabling Platforms & Tools Curse, Twitch, YouTube Channels, Fundly, Instagram …
2015
© 2015 Newzoo
EXPERIENCE CREATE
eSports is at the nexus of trends relevant for everyone
eSports shows us new revenues and business models
