E-sports is the new video game industry trend that refers
to multiplayer video games played competitively for spectators, typically
by professional gamers. The global esports market size was valued at USD 1.1
billion in 2019 and is expected to increase at a compound annual growth rate of
24.4% from 2020 to 2027.
The key revenue driver is engagement, which can be exploited
massively through tournaments, events, and popular gamers that broadcast these
video games through online platforms such as Twitch or Youtube so that their
thousands of followers try the same video games as them. As a result,
tournaments and other events are attracting merchandising, media rights,
advertising, sponsors, investments from international brands such as Nvidia
Corporation and Intel, and even celebrities and thus also resulting in
overcrowded stadiums and live streaming. Moreover, e-sports generates more
video game hours played, downloads, sales, subscriptions, and other revenue
sources that will be tested shortly in the business models that the main
industry firms are expanding by introducing e-sports.
On the one hand, the industry is still limited by tournament
infrastructure and less number of organizations. On the other hand, other
introductions such as mobile platforms will reduce the barriers of entry so
that many gamers and fans will pour in. Esports tournaments are now engaging
millions of fans watching regularly in the same way as conventional sports do
so that Esports is expected to be able to compete with traditional ones.
There are some innovations such as monetization, which has
been recently introduced by Activision Blizzard by moving ticket sales from the
arena events to the internet in the overwatch league in 2018. Therefore, popular
video games may be able to add a new income stream in the future, which would boost
the global market growth. This company also launched the Call of Duty League
and is now the major firm creating organized esports leagues that attract
professional players, broadcast partners, and advertisers.
Lastly, it is key to point out the current
professionalization process that has created lots of new job opportunities
for gamers, influencers, game developers, and event organizers.
Consequently, it is now being considered as an emerging professional career already
offered by some schools and universities while also expected to be chosen by
lots of young people from the upcoming generations. Most players will primarily
have lots of options in pursuing their esports careers such as streaming or
professional gaming in case they successfully specialized in concrete video games.
PD: in case you want to know more about Activision Blizzard
Inc., you can read the research report already available in my blog for this
last quarter in which I recommended to buy the company stock (in fact, the firm
presented outstanding results at the beginning of this month) and also follow
the future announcements and some e-sports competition they will broadcast on
19th and 20th February on Blizzcon event (this year the
online access will be free for the first time due to Covid-19 pandemic): https://blizzcon.com/en-us
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