eSports growth slowing but market to pass $1bn in 2017 – SuperData

first_imgeSports growth slowing but market to pass $1bn in 2017 – SuperDataSponsorship money slowed by fraud among live streamers, Joost van Dreunen tells usJames BrightmanWednesday 20th July 2016Share this article Recommend Tweet ShareAccording to SuperData’s latest report on the eSports market, the global eSports business is now worth $892 million and should exceed $1 billion some time next year, but growth has been slowing and the market is expected to only climb to $1.23 billion in 2019. As you might expect, advertising and sponsorship accounts for the bulk (74%) of all revenue, but that’s a double-edged sword as it’s creating obstacles for the industry.”Money continues to flow into eSports, but it also creates a relianceon advertisers and sponsors,” said SuperData CEO Joost van Dreunen. “On a superficial level, many people fromthe traditional media side still hold on to archaic ideas about whatgamers are, making it difficult for media execs and marketers who arenot from the Stone Age to gather internal support to take budgetsbeyond just experimental money.”But on a deeper level, competitive gaming will need to adhere to mediaindustry standards to convince non-endemic brands at scale. To grow,it has to overcome one of its biggest struggles in digital mediatoday: the lack of credibility and reliability of accurately assessingthe ‘true’ eSports audience. We’ve found, for instance, that there isa lot of fraud among live streamers, with some of them actively buyingfake viewers to raise their ranking. Until this issue is fullyresolved, growth of sponsorship money will remain limited.”He added that problems with gambling and doping have only made things worse but that those issues can be chalked up to “growing pains” for the eSports industry. Related JobsSenior Game Designer – UE4 – AAA United Kingdom Amiqus GamesProgrammer – REMOTE – work with industry veterans! North West Amiqus GamesJunior Video Editor – GLOBAL publisher United Kingdom Amiqus GamesDiscover more jobs in games Looking at the larger eSports picture, Asia is still the dominant region with an eSports market valued at $328 million this year, but North America and Europe aren’t massively behind with markets worth $275 million and $269 million, respectively. Importantly, viewership is continuing to increase and is expected to grow 14% in 2016 to an estimated 214 million, ultimately reaching more than 303 million by 2019. Fueling this viewership growth, in part, is an acceptance of eSports by more casual players. “…with popular titles such as League of Legends, Rocket League and Hearthstone also becoming eSports, the category is drawing more casual gamers,” SuperData noted.Speaking of League of Legends, it should come as no surprise that Riot’s game is still on top of the eSports world. It’s currently the most-watched and highest grossing eSports title in the world, generating $737 million in revenue with 96 million monthly average users (MAU) from January to May 2016. Call of Duty Black Ops came in second with $328 million in revenue and 26 million MAUs, followed by FIFA 16 in third with $256 million in revenue and 12 million MAUs.As for titles that could soon help fuel more eSports growth, SuperData pointed to Rocket League’s large user base and emerging streaming community, which “make it ripe for grassroots success moving forward;” it’s already garnered 4 million users in July 2015. Blizzard’s Overwatch, however, could be the next truly big one. The title already earned $269 million in May 2016 and secured 10 million monthly average users.Celebrating employer excellence in the video games industry8th July 2021Submit your company Sign up for The Daily Update and get the best of in your inbox. Enter your email addressMore storiesMTG loses money in Q1 despite greater revenuesESL Gaming parent company doesn’t expect a significant return to live esports events until 2022By Brendan Sinclair 12 days agoGrid secures $10m in Series A fundingGerman-based esports data company will use the “investment to take on the US”By Jeffrey Rousseau A month agoLatest comments (1)Peter Warman CEO & Co Founder, Newzoo4 years ago Ooops, let’s not mix up the downwards adjustment of revenue estimatesin and a slow-down of a market. If initial estimates are too high this has nothing to do with future slowing down of a market. The mix-up of messages can be particularly harmful for investors as well as the market they are thinking about investing into. I know adjusting revenue estimates of the current running year feels like you made a mistake but everyone knows that no data is perfect and at least you end up with a more realistic growth curve going forward, which in this case would be steaper. With VR, the situation is different but the adjustments, on a bigger scale, were communicated openly and I think that is a better choice for everyone . 0Sign inorRegisterto rate and replySign in to contributeEmail addressPasswordSign in Need an account? Register now.last_img read more