Esports are becoming a big deal. Significant growth is expected for eSports which is noteworthy since the current growth of the industry has been staggering. Newzoo, a marketing researcher, recently released its annual report predicting 2018 revenues to hit $905 million, a huge 38% increase from 2017’s $655 million. Additionally, brand investment is expected to make a significant impact with an increase of 48% year-over-year.
There are many factors that are feeding into the growth including groundbreaking new developments hitting this year. League of Legends’ 2017 World Championship finals more than doubled its unique viewers – something to watch during the 2018 season.
Sponsorships will continue to dominate the space – encompassing 40% of the industry in 2018. What’s more interesting is the money from media rights to broadcast games is expected to pick up which will help bolster more stable revenue streams for the industry. The big one this year was the announcement of the exclusive streaming deal between Activision Blizzard and Twitch for its Overwatch League.
Speaking of Overwatch, they’re pushing for local interest in the esports teams. Just like the NBA or NFL, Overwatch assigns its teams a city like the Philadelphia Fusion and Los Angeles Valiant. Activision Blizzard will hope to build local interest by holding matches in each city in the near future.
We’re still looking at a billion dollar industry in 2019, something that investors and companies have been waiting for. By 2021, revenues could reach $1.65 billion – so if you’re in the industry, take advantage of that growth and if you’re thinking about stepping in, this is your chance.