NEW YORK (Reuters) – the Global esports revenues to hit $1.1 billion in 2019, up 27 percent since last year amid ballooning revenues from advertising, sponsorship and media rights of the competition video gaming, a report said Tuesday.
FILE PHOTO: the Players are shown on the video screen as they attend the PUBG Global Invitational 2018, the first official esports tournament for the computer game PlayerUnknown the Battlefields in Berlin, Germany, July 26, 2018. REUTERS/Fabrizio Bensch/File Photo
Brand investments by means of these three roads will be an increase of 82 per cent – or € 897 million of the total revenue. In all, brand support, will have almost tripled since 2015, according to data from Newzoo, a gaming-industry analytics company.
Esports is a form of competitive video gaming with multiple players to compete against each other, usually in teams, often in competitions that are streamed live to throngs of young fans.
Esports has burst into the mainstream, with its own superstars and competitions, celebrity athlete owners and tournaments that sell out stadiums and prizes worth millions of dollars. League of Legends, Dota 2 and Counter-Strike: Global Offensive are some of the most popular esports.
Early investments by the big brands are now root, Newzoo CEO Peter Warman said.
“This is not experimental budgets. This is for the long term, and it is good amounts of money,” he said. “It’s what the ecosystem needed and what investors wanted to see.”
For example, Activision Blizzard Inc Overwatch League the name Coca-Cola Co as its official global beverage sponsor for non-alcoholic drinks on Friday.
The developer of the game, which runs the professional esports league, also inked sponsorship deals with car manufacturer Toyota Motor Corp, wireless provider T-Mobile US Inc, computing companies, HP Inc (HPQ.N) and Intel Corp.
North America will generate $409 million of esports revenues in 2019, the most of all regions, Newzoo report found. China will generate 19 percent and South Korea 6 percent, with the rest of the world, consisting of the remaining 38 percent.
While the advertising is the bulk of the revenue, merchandise and ticket sales are also the expected growth of 22 percent to nearly $104 million, although the game publisher, the cost will probably decline 3 percent to $95 million, the report showed.
The total audience is composed of both enthusiasts and occasional viewers is expected to grow by 15 percent to 454 million euros.
By 2022, total global esports revenue could be $1.8 billion, Newzoo found.
Newzoo does not include the prize money, salaries, investment in esports organisations or betting in his predictions.
Reporting by Hilary Russ; Editing by Lisa Shumaker