the esports economy - igaming business · “esports is still an underdog and an uncharted...

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The eSports Economy Trends, Audience, Revenues & Opportunities

PETER WARMAN

CEO & CO-FOUNDER

IGAMING SUPERSHOW WEBINAR

11 JUNE 2015

www.newzoo.com www.newzoo.com © 2015 Newzoo

NEWWHO? Peter Warman CEO & Co-Founder [email protected]

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

The Experts On All Things Games.

MARKET TRENDS | CONSUMER INSIGHTS | DATA MODELLING | PREDICTIVE ANALYTICS

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“eSports is still an underdog and an uncharted industry. Newzoo has been a tremendous help in creating valuable data about our industry and in making it more transparent and understandable for outsiders. Peter and his team have been fantastic to work with and have created incredible value for our sport” - Ralf Reichert, CEO ESL Gaming

WHY WE FOCUS ON ESPORTS

© 2015 Newzoo

Southeast Asia Worlds’ Fastest Growing Games Region

Spotting Mobile Spenders. An Analysis of Paying Mobile Gamers

The Global Growth of eSports. Trends, Revenues and audience towards 2017


eSports is about being the best …


eSports is about entertaining crowds …


eSports is about winning …


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

$1BN DEAL

eSports is about winning … what?


2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015e

$9.7M

$3.6M $4.4M $6.1M $6.4M $3.5M $5.2M

$13.1M

$19.8M

$36.0M

$71.0Me

+97% YoY

-48% YoY

2009: Korea’s Esports Scene Takes a Blow Legislations in South Korea implementing bans and curfews on gaming, a feud between the Korean Esports Association and Blizzard, and the falling popularity of Starcraft contributed to the dip in prize money in South Korea between 2008 and 2012. Since then, esports broadcaster MBC was discontinued and OnGameNet is a much smaller operation whose content is no longer broadcasted on TV ….

2014: US & China Lead

Source: Newzoo, The Global Growth of Esports: Trends, Revenues & Audience Towards 2017

© NEWZOO | JUNE 2015

Esports Prize Money Over Time 2005 to 2015 | Global | US & China Take Lead From Korea

Korea has never fully recovered, rendering the US today’s #1 in the accelerating esports market, with China close on its heels ....

Prize money will double this year

to

$71M Up 2000%

compared to only six years ago

© 2015 Newzoo


With Competition Comes Betting Traditional Forces and Start-ups Jump on this New Betting Niche

Bookmakers for eSport Betting eSports Betting and Fantasy Leagues

eSports is Pinnacle’s

7th Biggest market in terms of

volume, bigger than Golf & Rugby

© 2015 Newzoo


The 2015 Global Esports Market Global Revenues | Prize Money | Audience | YoY Growth

37% 34% GLOBAL

$252M +30% YoY

NAM

$93.2M +32% YoY

APAC

$85.2M +28% YoY

Revenues 2015 | Esports| Global, NAM , APAC

Esports Enthusiasts

147M 70M 25M 17M

2014 JAN-MAY

$7.9M

2015

JAN-MAY

$15.7M

$36M +82% YoY

$71M +97% YoY

113M

+27% YoY

2014

2015e

Occasional Viewers

Prize Money 2014 vs 2015e | Esports | Global

Audience | 2015 | Esports | Global

(>once a month) (>once a month)

Source: Newzoo, The Global Growth of Esports: Trends, Revenues & Audience Towards 2017

© NEWZOO | JUNE 2015

29%

Of all eSports viewers

40% do not play any of

the top eSports franchises.

Another sign that

gaming is becoming a spectator “sport.”


eSports Enthusiasts: East vs. West 2014 and Growth Towards 2017

Of all eSports enthusiasts

54% are from Asia.

The majority of

audience growth is in North America and Europe.

© 2015 Newzoo


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© 2015 Newzoo

The eSports Ecosystem

Global Growth of Esports Report Premium

Includes Global Growth of Esports Report, granular data sets and quarterly

updates on trends and key metrics.

Annual Report & Quarterly Updates

Global / regional revenues & future projections 2013-2018

Global / regional audience size & future projections 2013-2018

Demographic profiles

Prize money development

Consumer data for 26 countries

Quarterly updates on: key trends & changes influencing esports, M&A activity, key developments with teams, media, sponsors, companies & titles

© 2015 Newzoo

http://www.google.nl/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=cdX_Lng3LULajM&tbnid=GC014_4b3NYOAM:&ved=0CAUQjRw&url=http://www.interactive.org/about/corporate_links.asp&ei=tk-LUuGJMOnE0QWghYCoCQ&bvm=bv.56643336,d.d2k&psig=AFQjCNGf030AamRnl3hWlgXU8JeKgryvKA&ust=1384948014615847



CREATE

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

eSports at the Nexus of Trends Consumers want to Create, Share & Compete

58 million

89 million

145 million

2012

2014

2017

Esports Enthusiast Audience Growth

(frequent viewers/participants)

PRO PRO

PRO

CGC “PROSUMER”

2005

ART/DESIGN MOVIES/GAMES

ADVERTISING/MAIL

© 2015 Newzoo

In the past ten years, how consumers “consume” content has drastically changed. People not only enjoy watching each other instead of professionally created content but they have the increasing desire to create, share and ultimately be part of the experience. The explosive growth of eSports and the success of sharing game video content illustrates this more than anything else. In 2005, only 1% of consumers were considered creators or ”prosumers”. Ten years later, everyone creates and shares experiences and can earn serious money doing so.

EXPERIENCE

EXPERIENCE

SHARE

CREATE

© 2015 Newzoo


46% AWARE OF ESPORTS

VIEWERS OR PARTICIPANTS

of all gamers aged 10-65 is aware of eSports

of all gamers aged 10-65

watches eSports or participates in

(amateur) eSports.

GAMERS AGED 10-65

29.7M

15% 32% of all eSports aware gamers aged 10-65 watches eSports or participates in (amateur) eSports.

4.4M

LEVEL OF ESPORTS INVOLVEMENT

amongst all eSports viewers and participants

eSports Involvement | UK Amongst all gamers aged 10 to 65

1.9M

ESPORTS SEGMENTS

frequent viewers and active

participants

2.5M

ESPORTS ENTHUSIASTS*

OCCASIONAL VIEWERS

that only watch eSports sometimes

eSports Enthusiasts & Occasional Viewers

United Kingdom

4.4M

* People that regularly watch eSports or participate in (amateur) championships (answer possibilities e,f, g)

© 2015 Newzoo


HOME SITUATION

eSports Audience Demographics | UK Age/Gender split of eSports Enthusiasts & Occasional Viewers

OTHER FACTS

on eSports Enthusiasts

50% living together or alone with

children.

20% of eSports enthousiasts that play PC/Mac games are big spenders,

versus 8% for all gamers.

31% Of eSports enthousiasts

plays on a Xbox One

BIG SPENDERS

NEXTGEN

KEY DEMOGRAPHICS

of eSports Enthusiasts (inner circle) & Occasional Viewers (outer circle)

ESPORTS ENTHUSIASTS

66% is male

OCCASIONAL VIEWERS

16% is >35yrs

58% is male

27% is >35yrs

United Kingdom

© 2015 Newzoo


The Value of eSports Enthusiasts

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

30% Are

female vs. 48% of all gamers

55% Is between 21

and 35 years old vs. 33% of all gamers

© 2015 Newzoo



FANS

eSports comparable to individual sports

94M 113M


Sports & Esports Audiences Compared Total # of sports fans equal gamers; Esports comparable to Ice Hockey

2.2Bn

1.7Bn

2.1Bn

Sports Fans

Gamers

1.6Bn

Active in Sports

2014 2017 2014 2014

89M

145M

94M

Ice Hockey

Esports Enthusiasts

2014 2017 2014

151M

American Football

2014

All Sports

powered by

On a global scale, the number of esports enthusiasts compares well to mid-tier traditional sports. Currently, the popularity of esports is on par with sports such as swimming and ice hockey. By 2017, the number of esports fans will come close to that of American football.

There are 2.2 billion people globally who consider themselves to be interested or very interested in sports. Of these, 1.6 billion actively participate in at least one sport – comparable to the number of people who play games (1.7 billion). The total amount of frequent esports viewers will total 89 million globally this year and is anticipated grow to 145 million over the next three years.

Report: Global Growth of Esports Trends, Audience and Revenues Towards 2017

www.newzoo.com/esportsreport

All Gamers

Individual Sports

Esports Enthusiasts

vs. vs.

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REPORT PARTNER

“Repucom has been studying sport and entertainment fans across the world for decades, and there’s never been a more exciting time for new formats which engage the next generation. This collaboration with Newzoo gives our clients a chance to see how far esports have travelled already, and the potential value we can expect in the near future”.

Mike Wragg Global Head of Research

repucom

© 2015 Newzoo


On a global scale, 2 billion sports fans each generate an average of $56 per year across all sports, while esports enthusiasts generate $2.2 per person per year (without game revenues taken into account). In general, individual sports generate anything upwards of $20 per fan per year. The Global Growth of Esports report chooses a relatively conservative scenario for future revenues. This is based on audience growth combined with a slightly higher average revenue per fan of $3, still many factors lower than sports. The image below shows that if this rises to $7 per fan, Esports would cross the $Bn mark in 2017, while it would take until 2020 in the conservative scenario. The full report shows more detailed sports data and talks about the key factors that will determine the speed of growth going forward.

Towards a Bn Dollar Esports Economy Revenue per (e)sports fan indicates additional growth potential

Report: Global Growth of Esports Trends, Audience and Revenues Towards 2017


TOTAL ESPORTS REVENUES

Esports Growth Scenarios Based On Annual Revenue per Enthusiast

$1Bn

Report Scenario

Alternative Optimistic Scenario

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

$2 $3

$2

$3

$5 $7

$15

$1.1Bn

$0.5Bn

$1.0Bn

$3.0Bn

$56

$20

All Sports

Individual Sports

2014 Revenue per (e)sports Fan

$2 Esports

AVERAGE REVENUE PER ENTHUSIAST

Introduction Key Trends in Games & Esports The Esports Audience Global & regional audience per type Esports audience growth 2012-2017 Demographics per region The Esports Economy Prize money trends The Esports value chain Key teams, channels, publishers, events, leagues and sponsoring brands Publisher investment into Esports Esports Revenues Revenue streams Global & regional Esports revenue projections, split per revenue stream Sports vs. Esports Gaming & Esports versus all & individual sports on audience and revenues Value per viewer: sports vs. Esports Future potential of Esports Esports betting Appendix Data tables with revenue & audience data 2012-2017: Global & Regional

FULL REPORT CONTENT

powered by

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Esports Involvement vs iGaming

Playing for real money in online casino's | 2015 US Betting and Wagering on Real-Time Events (e.g. Horse Racing / Sports) | 2015 US

One Third of Esports Enthusiasts Spends Money On Betting or In Online Casino’s On a Weekly Basis. Compared to 8% for the Online Population and 15% for All Gamers.

© 2015 Newzoo


The eSports Economy Trends, Audience, Revenues & Opportunities

PETER WARMAN

CEO & CO-FOUNDER

IGAMING SUPERSHOW WEBINAR

11 JUNE 2015

the esports economy - igaming business · “esports is still an underdog and an uncharted...

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