Why Should You Consider Investing in Esports?

By Saloni Sehmi 62 Views

Investing in Esports: A Lucrative Opportunity

Esports, with its millions of players, fans, and billions of dollars in revenue, has become a booming industry. It is now considered a billion-dollar investment opportunity for individuals and companies alike.

The Global Market for Esports

Source: Newzoo

In 2018, the revenue generated from esports was $776.4 million. By 2019, it had increased by 23.3% to $958.9 million. In 2020, the revenue reached a staggering $1.06 billion, and by 2023, it is projected to be a $1.5 billion industry.

The COVID-19 pandemic has further accelerated the growth of esports. With people spending more time indoors, the number of viewers watching gaming streams and esports events has skyrocketed. Streaming services have seen a significant surge in growth as a result.

esports revenue streams
Source: Newzoo

According to Newzoo, sponsorship revenue in 2020 was worth $614.9 million, media rights accounted for $176.2 million, publisher fees reached $120.2 million, merchandise and ticket sales amounted to $106.5 million, digital revenue reached $21.5 million, and streaming generated $19.9 million in revenue.

Although the pandemic has impacted the merchandise and ticket sales, streaming revenue has increased by 44.9%. More people are tuning in to watch video game streams and esports events online.

Furthermore, the esports audience continues to expand each year, with millions of people engaging with esports content.

esports audience growth
Source: Newzoo

Given the immense growth and potential of the esports market, investing in esports is a wise decision.

High User Engagement

high user engagement

The number of people dedicating several hours a day to watching and playing video games is increasing. Esports offers highly entertaining content, with viewership hours reaching 98.5 million in 2019, compared to 15.3 million in 2018. This presents an opportunity for brands to engage with their core audience through product positioning, reviews, ads, and influencer marketing.

Tech Giants Backing Esports

tech giants backing esports

Leading technology companies have recognized the potential of esports and are investing heavily in the industry. Tencent, the largest online gaming community operator in China, acquires popular esports games like League of Legends and PUBG. Amazon’s Twitch platform is a major player in esports streaming, and Google monetizes esports content on platforms like YouTube and Facebook.

Final Thoughts

Esports offers a vast array of opportunities for investors. With increasing revenue, high user engagement, and backing from tech giants, it is clear that the esports industry is here to stay. Investing in esports now can lead to substantial returns in the future.

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