Newzoo Projected Esports Will Bring in $1.48 Billion by 2020
Sales from eSports are anticipated to grow in 2017 to $696 million from $493 million in 2016, based on a market report released by Newzoo.
Newzoo estimates businesses will allocate $155 million towards marketing with eSports, events and direct sponsorship to players will take up $266 million and $95 million on media rights. The remainder of the cash contributed from consumers purchasing a combination of tickets and merchandise sales.
“Esports is not only growing exponentially as a new independent business and industry, it is also accelerating the convergence of various established industries. For brands, media, and entertainment companies, esports provides a chance to capitalize on the favorite pastime of digital natives and Millennials: playing games and watching game content. With the arrival of live streams and events, gaming has entered the realm of broadcasters and media that can now apply their advertising business model to a market previously out of reach for them.” said Peter Warman, CEO of Newzoo.
The market intelligence company has released its latest Global eSports report which analyzes the present state of eSports worldwide and forecasts its future growth. It says that international earnings for eSports are expected to grow to over $1.4 billion by 2020. About $1.2 billion in revenues are generated from advertisements, media rights and sponsorships.
The crowds and audiences for professional competitive gaming will continue its growth trajectory in 2017 and beyond, and this will lead to an inflow of more revenues.