The Rise of Esports Revenue and the Collections Made by Companies in the Industry

We will discover more about how rapidly the eSports industry is expanding so that you can comprehend how to capitalise on it and get more information.

The eSports industry has grown rapidly in aspects of both viewing figures and profitability over the years. The growing viewership has contributed significantly to profitability – and not only because those viewers generate revenue. Brands are making investments in eSports marketing, both directly and indirectly, because they see the possibility of reaching a large and engaged audience. This has made a significant contribution to the industry’s accelerated revenue growth, which has only been slowed by COVID’s restrictions on large public eSports events, though things appear to be back to normal in 2022.

eSports has also grown in a variety of other areas, many of which are interconnected in some way. In this article, we will discover more about how rapidly the eSports industry is expanding so that you can comprehend how to capitalise on it.

The Incredible Rise of eSports [+ eSports Statistics]: Viewership of eSports is Increasing:

The existence of eSports has changed as a result of the emergence of COVID-19. The distinctions among both eSports, livestreaming, and sometimes even influencer marketing is becoming fragmented. The pandemic resulted in increased viewing across all livestreaming platforms. People were forced to stay at home as during lockdown, so they turned to livestreaming to pass the time. While the eSports industry faced challenges during this period, it also saw significant expansion and enlarged into marketplaces where there was previously slight action. However, the industry suffered the consequences of the termination of many in-person events, with some international events being supplanted by regional tournaments.

Since 2016, there has been a substantial increase in eSports viewers, both casual and avid, i.e., viewers who stream it on a routine basis. Annualized, there was a 12.3% uptick between 2018 and 2019 (using Newzoo’s old definitions). According to Newzoo’s 2019 modified figures, there were 200.8 million casual viewers and 197 million eSports fans, for a total audience of 397.8 million. In 2020, there were 220.5 million infrequent watchers and 215.4 million eSports hobbyists, for a total eSports viewing public of 435.9 million.

Newzoo forecasted 8.7% year-on-year growth through 2021, and the year ending with 240.0 million infrequent viewers and 234.0 million eSports hobbyists, for a total eSports viewing public of 474.0 million. According to Newzoo, the compound annual growth rate (CAGR) for eSports aficionados from 2019 to 2024 will be around 7.7%. They anticipate that the number of casual viewers will increase to 291.6 million. There will also be 285.7 million eSports fans, for a total audience of 577.2 million.

eSports is becoming more popular around the world. Mature markets such as North America and Western Europe are still expanding. However, economic expansion markets in the Middle East, Africa, Asia-Pacific, and Latin America have had the greatest impact on audience numbers in the last year. Furthermore, increased mobile streaming usage has fuelled demand in markets such as India and Brazil.

The Rise of eSports Revenue and How Brands are backing it up:

A few brands have indeed made substantial eSports marketing investments, recognising the potential of entering the eSports market. As a result, the industry has witnessed a significant rise in income in recent years.

According to an earlier Newzoo analysis, revenue increased by more than 30% on an annual basis until 2018. At this point, the rate of growth has slowed; however, eSports revenue in 2019 was $957.5 million, representing a 23.3% year-on-year rise (and slightly higher than what Newzoo had predicted).

Nonetheless, COVID-19 had a massive effect on eSports revenue, and Newzoo reduced its 2020 eSports revenue estimates from $1100.1 million (as anticipated in February 2020) to $950.3 million globally. Nevertheless, even this prediction was too defeatist, with actual global eSports revenue in 2020 being $947.1 million. Revenues decreased by 1.1% year on year. This drop in revenue was primarily caused by low in-person attendees at eSports events, as well as limitations on public gatherings. As we’ve seen elsewhere, eSports and gaming are much more prevalent than ever; however, there are currently COVID-related constraints on income streams.

However, the year 2021 appeared to be more promising in terms of eSports revenue growth. Newzoo forecasted annual revenues of $1084.1 million, representing a 14.5% increase year on year. Furthermore, they predicted that China would start generating more than a third of global eSports revenue.

Looking ahead to 2024, Newzoo forecasts eSports revenue to reach $1617.7 million, representing an 11.1% compound annual growth rate (CAGR) from 2019 to 2024. According to Newzoo’s most recent eSports revenue estimates, the $1084.1 million total in 2021 was most likely to be made up of the following revenue streams: sponsorship $641.0 million (up 11.6% YoY), media rights $192.6 million (up 13.4%), publisher fees $126.6 million (up 22.6%), merchandise & tickets $66.65 million (up 13.8%), digital $32.3 million (up 50.4%), and streaming $25.1 million (up 25.7%). Although endorsement revenue is obviously the fundamental basis of eSports revenue, ticket revenues are anticipated to retrieve from COVID-19 constraints, and eSports organisers and teams will proceed to broaden.

10 Significant eSports Statistics:

  • Between 2020 and 2025, the market for video games and eSports is anticipated to expand by 6%.

PWC published their Global Entertainment & Media Outlook 2021-2025, which includes five-year forecasts of consumer and advertiser expenditure across 14 sections and 53 regions. They saw vr technology as the most substantial growth section, with 30% growth in that timespan, followed closely by cinema (29% growth) and data consumption (27% growth). They consolidated video games and eSports and anticipated a consolidated 6% CAGR (compound annual growth rate) over the next five years.

  • $1.182 million in eSports prize money

As per eSports Earnings, a total of $1,182,221,050.12 has now been compensated out in eSports tournament prize money. The prize money for the most recent pre-Covid year, 2019, is still $241,354,528.60. The introduction of Covid resulted in a significant decrease in prize money competed for in 2020 – $127,877,249.11 – with things rebounding nicely in 2021, $213,288,016.97.

  • The largest prize pool for a team tournament is $40 million

The International 2021 in Bucharest, Romania, has the greatest prize pool (as well as the best squad prize pool), totalling $US40,018,400. Between October 7 and 17, 2021, eighteen teams competed in Dota 2. Team Spirit, the champion team, received $18,208,300.

  • The largest individual tournament prize pool is $15.2 million

However, eSports isn’t only for teams. There are also championships where you can play alone. The highest paying event was the Fortnite World Cup Finals 2019, which had a solo prize pool of $US15,287,500, with the leading player receiving $3 million (Kyle Giersdorf – Bugha).

  • There are 615 Tournament Results for Mew2King

Jason Kimmerman (aka Mew2King) has the most tournament victories. He has won $284,169.31 in 615 tournaments. Surprisingly, his most frequently played league match is Super Smash Bros. Melee, in which he has battled 355 times, accounting for 57.72% of his tournament results.

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