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#esports Still Growing Strong
E-SPORTS REMAINS ON THE GROWTH PATH
Latest Newzoo numbers showcase a thriving industry.
The independent digital research company Newzoo has released a teaser on its current review of the eSports vertical, reporting that it has revised upward by 7 percent its estimates on revenues in the current year to $493 million.
That represents a year-on-year growth of almost 52 percent, the researcher observes, attributing elements of the growth to the increased investment of up to $100 million by game developers like Blizzard and Valve that have identified the potential of competitive video gaming and promote and support eSport teams, leagues, operators, and event organisers.
Researchers predict that revenues are likely to rise by 42.2 percent by end 2019, delivering annual revenues of $1.1 billion. That will come principally from the North American market (36 percent) followed by Asian markets (22 percent) and the rest of the world at 42 percent.
The report notes that it does not include betting volume in its predictions, which could more than double the $493 million in revenues achieved by the end of 2016.
Newzoo breaks down the current revenue contributory numbers into 71 percent from advertising, sponsorship and media rights (around $350 million) with the remainder delivered by merchandising and event ticket sales.
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