the esports economy - newzoo · the esports economy trends, audience and revenue growth towards...
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The eSports Economy Trends, Audience and Revenue
Growth Towards 2017 Peter Warman, CEO Newzoo
eSports is about being the best …
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eSports is about entertaining crowds…
eSports is about winning…. and…
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eSports is about winning…. and… betting
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What and where is this?
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What and where is this?
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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 BOUGHT BY
$1BN DEAL
The eSports EcoSystem
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© 2015 Newzoo
Streaming (game) content
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Game(r) content rules Youtube
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1 Minecraft 2 Call of Duty 3 Grand Theft Auto 4 Angry Birds 5 Super Mario 6 League of Legends 7 FIFA 8 Halo 9 World of Warcraft
10 Battlefield
Based on number of views (all-time)
Top 20 Game Franchises On
Source: 2014 Octoly
11 Assassin's Creed 12 Final Fantasy 13 Mortal Kombat 14 The Elder Scrolls 15 Team Fortress 16 Legend of Zelda 17 Dota 2 18 Counter-Strike 19 Left 4 Dead 20 Need for Speed
New monthly ranking by
Subscribers
93%-99% of game views involve consumer-generated content
Generated 37% of top 20 game views
Media in 2005
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PRO PRO
PRO
CGC “PROSUMER”
2005
ART/DESIGN Made by “professionals”
MOVIES/GAMES Made by “professionals”
ADVERTSING/MAIL Made by “professionals”
EXPERIENCE CREATE
SHARE
Approximately 1% of consumers are “prosumers”
Media in 2015
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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
© 2015 Newzoo
EXPERIENCE CREATE
Everyone Creates and Shares Unique Experiences
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eSports audience levels of engagement
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Occasionally watches professional and amateur competitive gaming
Regularly watches professional and amateur competitive gaming
Watches & sometimes participates in (amateur) championships
Watches & regularly participates in (amateur) championships
esports Enthusiasts Occasional Viewers
Source: Newzoo Global esports Audience Model
Of all eSports viewers around 40% does not play the games themselves
Global eSports Audience per Type
The Value of eSports Enthusiasts
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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
Global eSports Audience Growth
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FREQUENT VIEWERS / ENTHUSIASTS
OCCASIONAL VIEWERS
CAGR: +20% 2012-2017
Source: Newzoo Global esports Audience Model
This year, the number of eSports Enthusiasts will surpass 100 million
eSports Enthusiasts & Growth
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54% of eSports Enthusiasts are from Asia
Revenue Streams Comparable to Sports
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Merchandise, Licensing & Tickets
Media Rights
Online Advertising
Sponsorships
Game Publisher Investment
Source: Newzoo Global esports Revenue Model
Gaming as a whole compares well to sports: Sports fans: 2.2Bn, Gamers: 1.7Bn (2.1Bn in 2017) Sports Revenues: $124Bn, Game Revenues: $83.4Bn ($107Bn in 2017)
eSports comparable to individual sports
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94M 89M FANS
Will revenues also compare to IceHockey?
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94M 89M
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© 2015 Newzoo
eSports is just the tip of a huge iceberg
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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
© 2015 Newzoo
EXPERIENCE CREATE
eSports is at the nexus of trends relevant for everyone
eSports shows us new revenues and business models