Global E-Sports Revenues to Top $1 Billion in 2019: Newzoo

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Global E-Sports Revenues to Top $1 Billion in 2019: Newzoo
Highlights
  • Global e-sports revenues will hit $1.1 billion in 2019
  • Early investments by big brands are now taking root: Newzoo
  • North America will generate $409 million of e-sports revenues in 2019

Global e-sports revenues will hit $1.1 billion (roughly Rs. 7,700 crores) in 2019, up 27 percent since last year amid ballooning revenues from advertising, sponsorship and media rights to competitive video gaming, a report said on Tuesday.

Brand investments through those three avenues will make up 82 percent - or $897 million (roughly Rs. 6,300 crores) - of total revenues. In all, brand support will have nearly tripled since 2015, according to data from Newzoo, a gaming industry analytics firm.

E-sports is a form of competitive video gaming with multiple players battling against each other usually in teams, often in matches that are streamed live to throngs of young fans.

E-sports has burst into the mainstream, with its own superstars and leagues, celebrity athlete owners and tournaments that sell out stadiums and award prizes worth millions of dollars. League of Legends, Dota 2, and Counter-Strike: Global Offensive are some of the most popular e-sports.

Early investments by big brands are now taking root, Newzoo CEO Peter Warman said.

"This is not experimental budgets. This is for the long term, and it's good amounts of money," he said. "It's what the ecosystem needed and what investors wanted to see."

For instance, Activision Blizzard's Overwatch League named Coca-Cola Co as its official global beverage sponsor for non-alcoholic drinks on Friday.

The game developer, which runs the professional e-sports league, also inked sponsorship deals with carmaker Toyota Motor, wireless provider T-Mobile US, computing companies HP and Intel.

North America will generate $409 million (roughly Rs. 2,900 crores) of e-sports revenues in 2019, the most of any region, Newzoo's report found. China will generate 19 percent and South Korea 6 percent, with the rest of the world comprising the remaining 38 percent.

While advertising is the bulk of revenue, merchandise and ticket sales are also expected to grow 22 percent to nearly $104 million, though game publisher fees will likely drop 3 percent to $95 million, the report showed.

The total audience - comprised of both enthusiasts and occasional viewers - is expected to grow 15 percent to 454 million.

By 2022, total global e-sports revenues could be $1.8 billion, Newzoo found.

Newzoo does not include prize pools, player salaries, capital investments in e-sports organizations or betting in its revenue projections.

© Thomson Reuters 2019

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