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The eSports Economy Trends, Audience and Revenue Growth Towards 2017 Peter Warman, CEO Newzoo
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Page 1: The eSports Economy: Trends, Audience & Revenue Towards 2017

The eSports Economy Trends, Audience and Revenue

Growth Towards 2017 Peter Warman, CEO Newzoo

Page 2: The eSports Economy: Trends, Audience & Revenue Towards 2017

eSports is about being the best …

2

Page 3: The eSports Economy: Trends, Audience & Revenue Towards 2017

3

eSports is about entertaining crowds…

Page 4: The eSports Economy: Trends, Audience & Revenue Towards 2017

eSports is about winning…. and…

4

Page 5: The eSports Economy: Trends, Audience & Revenue Towards 2017

eSports is about winning…. and… betting

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Page 6: The eSports Economy: Trends, Audience & Revenue Towards 2017

What and where is this?

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Page 7: The eSports Economy: Trends, Audience & Revenue Towards 2017

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

Page 9: The eSports Economy: Trends, Audience & Revenue Towards 2017

Streaming (game) content

9

Page 10: The eSports Economy: Trends, Audience & Revenue Towards 2017

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

Page 11: The eSports Economy: Trends, Audience & Revenue Towards 2017

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”

Page 12: The eSports Economy: Trends, Audience & Revenue Towards 2017

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

Page 13: The eSports Economy: Trends, Audience & Revenue Towards 2017

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Page 14: The eSports Economy: Trends, Audience & Revenue Towards 2017

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Page 15: The eSports Economy: Trends, Audience & Revenue Towards 2017

eSports audience levels of engagement

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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

Page 16: The eSports Economy: Trends, Audience & Revenue Towards 2017

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

Page 17: The eSports Economy: Trends, Audience & Revenue Towards 2017

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

Page 18: The eSports Economy: Trends, Audience & Revenue Towards 2017

eSports Enthusiasts & Growth

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54% of eSports Enthusiasts are from Asia

Page 19: The eSports Economy: Trends, Audience & Revenue Towards 2017

Revenue Streams Comparable to Sports

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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)

Page 20: The eSports Economy: Trends, Audience & Revenue Towards 2017

eSports comparable to individual sports

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94M 89M FANS

Page 21: The eSports Economy: Trends, Audience & Revenue Towards 2017

Will revenues also compare to IceHockey?

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94M 89M

Page 23: The eSports Economy: Trends, Audience & Revenue Towards 2017

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

Page 24: The eSports Economy: Trends, Audience & Revenue Towards 2017

eSports shows us new revenues and business models

Page 25: The eSports Economy: Trends, Audience & Revenue Towards 2017

Thank You!

www.newzoo.com/esportsreport

Peter Warman, [email protected]