Exclusive content deals, as seen in traditional sports, will drive this growth. The upcoming year should see esports grow to ~$700 million, a growth of 41% from the previous year and an increase from $325 million in 2015. Revenues are projected to reach $1. 5 billion by 2020, growing at a CAGR ( ) of 35. 6%. The esports landscape is admittedly complex and at times difficult to navigate. The following article will include an introduction to the industry as well as insights for those interested in investing in it. It will cover the parties involved in esports, the size and demographics of the audience, the industry dynamics, and how to approach investing in the space.
In China, Tencent has been strengthening its presence by soft-launching its Tencent Start cloud gaming service with popular PC titles in areas like Beijing and Shanghai. The company has teamed up with Nvidia; the U. S. chipmaker will provide its GPU technology to Tencent to use in its cloud gaming service. G2E Asia and its team of experts will be presenting four months of exclusive online conferences offering firsthand knowledge and engagement opportunities with key gaming operators from all walks of the industry. Multilingual offerings, alternating from English to Cantonese and Mandarin, will spotlight key themes of Innovation, Enhancing Customer Experience, Safety and Security, and Sports Betting. Global Gaming Expo Asia – the marketplace for the Asian gaming and entertainment industry – will return to the Venetian Macao from August 17-19, 2021. At the same time, it has also been agreed that Tencent will sell its own game live streaming business Penguin eSports for $500 million, after the Huya-DouYu deal is completed.
Mobile game development outsourcing companies provide game studios with needed support. Researchers say the idea of indie game development, extremely popular at first, is losing momentum these days. Nevertheless, indie games do not lose their position as they, more often than not, are quite original and captivating. He foresees games will soon be streamed from the cloud servers; hardware may not be needed in the long run. This will boost AAA games, as ant screen with an internet connection would be able to run high-end games. When it comes to the mobile gaming vs PC gaming battle, PCs seem to be in a better position. What is more, the latest updates are first adopted and tested via displays with big dimensions and multiple screen resolutions supported.
I will provide not only third-party data and analysis, but also my personal experience and insight after listening to people, learning about the industry, and launching an esports company myself. YouTube has made its biggest investment into esports to date, signing สล็อตออนไลน์ sa an exclusive multi-year broadcasting deal with gaming platform Faceit. The Investment Opportunity of the DecadeThe upcoming year should see esports grow to ~$700 million in revenue, a growth of 41% from the previous year and an increase from $325 million in 2015.
As franchising becomes the dominant model, elite teams and organizations will become revenue-generating machines. However, those without franchise spots will be forced to find revenue in secondary leagues or look to establish themselves in titles that have yet to be franchised.
They won’t have access to sizeable revenue sharing deals in places like League of Legends and will have to focus on competing in secondary leagues, which offer far smaller cash prizes and sponsorship opportunities. While this consolidation will certainly be painful initially, I view this as a much-needed step forward for the industry as it continues to grow and prune the market. The below chart includes franchising details for the Riot and Overwatch leagues. In terms of pace, the fastest-growing revenue stream will likely be media rights, which will generate $340 million by 2020, up from $95 million this year.
Looking ahead, publishers will selectively grant broadcasting rights to specific partners and media outlets. One key thing to watch is whether heightened control over streaming and viewing rights will cause fan and player pushback, since publishers have historically encouraged users to share and stream content at their own discretion.