joost van dreunen: the competitive gaming opportunity
TRANSCRIPT
THE COMPETITIVE GAMING OPPORTUNUTY, FEBRUARY 2017 | © 2017 SuperData Research. All rights reserved.
February 16, 2017 Prepared for A-List Summit, Los Angeles
Analyst Perspec@ve:
The Compe@@ve Gaming Opportunity
THE COMPETITIVE GAMING OPPORTUNUTY, FEBRUARY 2017 | © 2017 SuperData Research. All rights reserved.
Image credit: Red Bull
EVO 2016 ELeague CS:GO Major
THE COMPETITIVE GAMING OPPORTUNUTY, FEBRUARY 2017 | © 2017 SuperData Research. All rights reserved.
144,000 147,000 EVO 2016 ELeague CS:GO Major
Image credit: Red Bull. Source: The Next Level.
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JOOST VAN DREUNEN CEO & co-founder
@joosterizer
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WATCH PLAY BUYViewing gamer
audienceAc0ve gamer
universeGamer
spending
Data Digital Video Consumer Behavior Transac@on-level
Metric Unique Viewers Monthly Ac@ves Revenue per Player
KPIs Reach Sessions, Purchase Intent, Mindshare
Spending, Rankings
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Level of Engagement
Data-driven offering built on informa@on collected across relevant consumer touchpoints.SuperData’s perspec;ve on next-gen entertainment.
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Selected customers
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SuperData approach to eSports industry
Teams
Publishers
Consumer Data
PlaHorms Logins
Play-@me
Merchandise Ticket Sales
Streaming Data Fanbase
Viewership
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Q: How big is the opportunity for compeOOve gaming?
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99
Watch but don’t play
Play but don’t watch
Watch + Play
83.6M 146.7M
eSports: biggest opportunity lies in its reach.Just over half of all monthly ac@ves also watches others play games online.
123.5M
1.1BWorldwide audience for Gaming Video Content
eSports Viewing Audience
Life-Cycle of the eSports Industry: 2007–2025E
$1B
$2B
2007 2014 2017 2020 2025
THE COMPETITIVE GAMING OPPORTUNITY, FEBRUARY 2017 | © 2017 SuperData Research. All rights reserved.
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Emergent behavior
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Life-Cycle of the eSports Industry: 2007–2025E
$1B
$2B
2007 2014 2017 2020 2025
THE COMPETITIVE GAMING OPPORTUNITY, FEBRUARY 2017 | © 2017 SuperData Research. All rights reserved.
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💀
Amateur Circuit
Valley of Death
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$7.1B UNBOXED
Entertainment is shiXing2015 Revenue for US entertainment markets Ranked by size in GBP (£) billions, CAGR: 2005-2015
Source: Mo@on Picture Associa@on of America, Recording Industry Associa@on of America, Na@onal Cable & Telecommunica@ons Associa@on, and the Newspaper Associa@on of America.
Cable TV 47 -0.10%
Broadcas@ng TV 34 -0.62%
Video Games 19 +7.87%
Newspapers 17 -8.19%
Radio 14 -1.10%
Magazines 13 -6.77%
Film Box Office 9 +1.74%
Music 7 -4.76%
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Life-Cycle of the eSports Industry: 2007–2025E
$1B
$2B
2007 2014 2017 2020 2025
THE COMPETITIVE GAMING OPPORTUNITY, FEBRUARY 2017 | © 2017 SuperData Research. All rights reserved.
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Growth
PopularizaZon Investment
IrraZonal Exuberance M&A
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“The average age of a NBA, MLB, or NHL season Ocket holder is probably in its 50s. Not probably. It is!”—Andy Miller, NRG eSports
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TradiZonal sports audiences decline
1984 1994 2004 2014
MLB World Series audience: 1984—2015 Millions of viewers
Source: MLB.
37M
15M
The average age of a baseball viewer is 53.
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Q: Will AcOvision eventually negoOate with CBS over sports-licensing fees for people to watch AcOvision games?
“Absolutely.”
Source: Adweek.
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Life-Cycle of the eSports Industry: 2007–2025E
$1B
$2B
2007 2014 2017 2020 2025
THE COMPETITIVE GAMING OPPORTUNITY, FEBRUARY 2017 | © 2017 SuperData Research. All rights reserved.
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Slope of Reality
Growth
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Source: Fusion Media Network.
“Right now it’s a gold rush to buy and sell and build teams. That’s creaOng a confused market.”
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Life-Cycle of the eSports Industry: 2007–2025E
$1B
$2B
2007 2014 2017 2020 2025
THE COMPETITIVE GAMING OPPORTUNITY, FEBRUARY 2017 | © 2017 SuperData Research. All rights reserved.
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Whoa!!
Business Model Ra@onaliza@on
431
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Life-Cycle of the eSports Industry: 2007–2025E
$1B
$2B
2007 2014 2017 2020 2025
THE COMPETITIVE GAMING OPPORTUNITY, FEBRUARY 2017 | © 2017 SuperData Research. All rights reserved.
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Business Model Ra@onaliza@on
ConsolidaZon Shake out
Pros vs Joes31
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Life-Cycle of the eSports Industry: 2007–2025E
$1B
$2B
2007 2014 2017 2020 2025
THE COMPETITIVE GAMING OPPORTUNITY, FEBRUARY 2017 | © 2017 SuperData Research. All rights reserved.
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Business Model Ra@onaliza@on
ConsolidaZon Shake out
Pros vs Joes431
2222
2
Life-Cycle of the eSports Industry: 2007–2025E
$1B
$2B
2007 2014 2017 2020 2025
THE COMPETITIVE GAMING OPPORTUNITY, FEBRUARY 2017 | © 2017 SuperData Research. All rights reserved.
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Maturity & Ascendance
5431
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Video the next fronZer
Channel Subscribers (Millions)
Music 94
Games 77
Sports 75
Movies 44
News 33
TV Shows 11
Live 2
360 Videos 1
Source: YouTube.
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Channel compeZZonChannel distribuOon: Gaming Video Content vs. eSports Cumula@ve results, n=3,682 qualified respondents
TwitchYouTube
YouTube GamingFacebook
MLGUstream
ESL.tvPlay.tvAzubu
Dailymo0on GamingDingIt
HitboxMobCrush
KamcordPlaysta0on SharePlay
Other
Source: SuperData Player Profile. August 2016, United States.
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Media economies of scale
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$175B
$132B
$75B
2727
AuthenZcity is the currency
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Boys clubGender distribuOon by channel Cumula@ve results, n=3,682 qualified respondents, US
FacebookPlaysta@on SharePlay
GamingLiveYouTube
YouTube GamingUstream
Dailymo@on GamingDingItPlay.tv
MobCrushTwitchAzubuHitboxESL.tv
MLGKamcord
FemaleMale
Source: SuperData Player Profile.
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Audience profiling and programmingAge distribuOon for major eSports Otles Cumula@ve results, US audience
13 to 17 18 to 24 25 to 34 35 to 44 45 to 54
Call of Duty SeriesCounter-StrikeDota 2League of LegendsHearthstone
Source: SuperData Player Profile.
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Overwatch demographicsAudience age breakout and gender distribuOon United States, Overwatch compared to Shooter Genre average
> 18
18 to 24
25 to 34
35 to 44
45 to 54
55 to 64
65+Male
Female
Overwatch Shooter-genre average 64%
36%
83%
17%
Source: SuperData Player Profile.
Summary
Addressable audience for compeZZve gaming at 234 million people in 2017E. Publishers are acZvely pursuing a strategy focused on generaZng ad revenue. eSports industry enters a period of Business Model RaZonalizaZon. Accurate targeZng and authenZc brand messaging miZgates the risks inherent in
an early, volaZle market.
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THANK YOUJOOST VAN DREUNEN SuperData Research, CEO
@joosterizer