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Trends of China’s
E-Sports Viewership 2017
Statement
Sampling & Accuracy
User data in this report, unless stated, are all collected from independent surveys conducte...
Website: www.chinatechinsights.com
Twitter: @CNTechInsights
WeChat: ChinaTechInsights
Data+Research+Consumer
China Tech In...
E-Sports for Everyone
03
E-Sports, as an emerging new sector in China, is advancing at the speed of light. In 2016, E-Spor...
Highlights of the Report
04
• 60% E-Sports audiences are under 25; the penetration rate of E-Sports in China’s 2nd tier ci...
The New E-Sports Era in China01
E-Sports Audience Overview02
An Explosive Viewership03
The Value Landscape of E-Sports04
B...
The New E-Sports Era
• The Development of E-Sports
in China
• How E-Sports Became a
National Affair
01
The Start of China’s Mobile
E-Sports Era
08
1998-2008
Single-Player
PC Game Era
2008-2016
Multiple-Player
Online Game
2016...
Chinese E-Sports Users to
Pass 2 Billion
09
The global E-Sports market is growing at a high speed. North America still lea...
450 Million Potential
Audiences in China
10
%
65.7
I haven’t seen a match
before, but have plans to do
so:
10.9%
I have wa...
Mobile Games Lead
the Trend
11
Client Games:
35.2%
Browser Games:
11.3%
Mobile Games:
49.5%
Others: 4.0%
Market Shares of ...
18.3%
59.3%
Totally Agreed
Agreed
Neutral
Disagreed
Totally disagreed
The Social Recognition of
E-Sports in China is Risin...
An Overview of
E-Sports Audiences
• Who are E-Sports Audiences?
• Audiences’ Behaviors
02
• The Training of Professionals
Young Men from 2nd Tier Cities Make
up the Majority of E-Sports Audiences
14
81% 19%
Female Players
Take up 19%
30 is the ...
User Profile: Students + High Income
Families
15
69% Users are under
College Age
24% Users are from Families of
RMB 10,000...
%
User Profile: Most Audiences Choose
to Watch with Their Friends
40.6
16
40.6%
34.4%
12.9% 9.2%
3.9%
36.3%
Who do you wat...
Home and Net Café are Primary
Locations for Game Viewing
17
79.8%
37.2%
20.7%
7.3% 5.6%
Locations for Watching
a Game
Time...
E-Sports Audiences Love to Share
18
41.1%
33.3%
28.3%
22.5%
20.4%
15.2%
Share with friends
Search other relevant informati...
Alternative Life Experience is the
Main Drive for Professional Players
19
Occupational Expectation to
E-Sports
“When will ...
Explosive Viewership
• Viewership of Top Competitions03
• Level of Popular Competitions
• Types of Popular Competitions
Game Copyright Distribution
Landscape of E-Sports in China
21
Game
Developers
Supervisors
Game
Publishers
Sponsors
Content...
Top E-Sports Tournaments Revenue
Close to Traditional Sport Competitions
22
5 Billion
+
LOL Professional League
(All Game ...
Classic E-Sports Competitions
Outreach to 100 Million+ Audiences
23
2016 Twitch Popularity Rank — Cumulative Viewership
DO...
KPL Tournaments Have
Phenomenal Success
24
In 2016, KPL created the fastest-growing viewership record in the history of E-...
%
Nation-wide Professional Games
Show Strongest Traction
62.2
25
62.2%
45.5%
11.4% 6.9%
24.4%
Pro League International
Lea...
MOBA Competitions Have
a Dominating Popularity
26
63.2
Most Viewed Game Type
MOBA
%
63.2%
46.9%
31.2%
14.6% 12.2% 8.8% 7.4...
The Value Landscape of
E-Sports
• The Direction for Development
• User’s Focus Point
04
• Value of Promotion Channels
Professionalism of E-Sports is
Well-recognized
28
“In your eyes, E-Sports is…”  At present, 70% of E-Sports audiences
sho...
29
User Focus Point Map of E-Sports
Competitiveness
Professionalism
Internationalism
Entertainment
Game
Atmosphere
Scale o...
Primary Media Channel:
Vertical Game Sites
30
55.7%
41.0%
26.1%
24.6%
21.0%
15.7%
15.4%
6.8%
Game Sites(Official Site/APP)...
Business
Opportunities of
E-Sports in China
• Demands for Game-related Events
• Audiences’ Paying Potential
05
• E-Sports’...
A Tipping Point for E-Sports
32
Low Professional Level
Underestimated
Business Value
Immature
Business Eco
Three Pain Poin...
Business Opportunity: Copyright
Distribution & IP Development
33
 Nearly 40% of respondents showed interest in
gaming liv...
Users Show Great Paying Willingness
34
34.1%
30.7%
27.9%
24.0%
19.3%
19.3%
17.0%
16.4%
Tickets for Onsite Game Watching
Hi...
Users’ Expectations in the Future
35
47.1%
41.5%
37.5% 36.4% 36.3% 36.1% 34.7% 33.3% 33.3% 32.5% 31.8%
28.3%
24.4%
18.7%
U...
The Future of E-Sports06
The Dawn of E-Sports in China
37
2016 is a year of opportunity for E-Sports. In April, the National
Development and Reform...
Professionalization is Now a Trend
38
2
In 2017, China's E-Sports audiences were expected to surpass 200
million. Positive...
Technology Brings an Elevation of
Viewing Experiences
39
3
In 2016, in the KPL, AR was applied in mobile E-Sports
competit...
Create More Options for
Game-viewing
40
In terms of game-related information acquisition, more than half
of audiences stil...
Great Potential for Advertising
41
A Rising
High Quality
User Group
5
Although E-Sports have accumulated a large amount of...
Chances Also Lie Offline
42
Develop With
E-Sports Venues
at Core
6
From game development to event organization, and then t...
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Trends of China's E-Sports Viewership 2017

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E-Sports, as an emerging new sector in China, is advancing at the speed of light. In 2016, E-Sports became an important part of China’s gaming industry with a market valued at 3 billion USD and 170 million users. Along with the expansion of E-Sports, we see an increasingly mature industry with blooming niche sectors. Related businesses, including copy right distribution, fan-based operations, franchise and e-commerce, will also see an increase together with E-Sports.

Penguin Intelligence joins hands with Tencent E-Sports have launched this report based on product data, consumer surveys, and industry insights. In this report, we’ll discuss:
1) The profile of E-Sports audiences in China and their behaviors
2) Most popular fields in Chinese E-Sports
3) Opportunities in each link of the value chain
4) User expectations for future tournaments

Published in: Technology
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Trends of China's E-Sports Viewership 2017

  1. 1. Trends of China’s E-Sports Viewership 2017
  2. 2. Statement Sampling & Accuracy User data in this report, unless stated, are all collected from independent surveys conducted by Penguin Intelligence and Tencent IEG’s big data platform. 23,365 mobile internet user samples were collected. Unless stated specifically, all surveyed users refer to Chinese mobile internet users. According to latest data released by China Internet Network Information Center (CNNIC), mobile internet users account for 95% of China’s internet users. Thus, all related conclusions drawn in this report based on user surveys can be applied to all Chinese internet users. Stratified sampling processing has been applied for data used in specific segments research. Definitions 02 E-Sports: a business sector based on video games but also has values beyond games with unique business value and users’ value of technology, athletics, entertainment, and social aspects. E-Sports Audiences: Audiences who have watched E-Sports and have a certain level of understanding of E-Sports. Players: Amateur players who have participated in E-Sports competitions. Copyright of the English version of this report is owned by Penguin Intelligence, China Tech Insights and the cooperative partners jointly releasing this report. Any use of this report, including reprint and reference, shall be cited with source and without deletion or modification of the content. For other usage of this report, please contact us via rhealiu@tencent.com. A Chinese version of this report can be found at re.qq.com. For inquiries concerning the content of this report, please contact miaxtzou@tencent.com. Copyright Statement
  3. 3. Website: www.chinatechinsights.com Twitter: @CNTechInsights WeChat: ChinaTechInsights Data+Research+Consumer China Tech Insights is an industry research project established by Penguin Intelligence at Tencent Online Media Group in 2016. We cover trending topics in China’s tech sphere through investigative reporting, meticulous interviewing, surveys, and research, along with professional opinions provided by top- notch business insiders.
  4. 4. E-Sports for Everyone 03 E-Sports, as an emerging new sector in China, is advancing at the speed of light. In 2016, E-Sports became an important part of China’s gaming industry with a market valued at 3 billion USD and 170 million users. Along with the expansion of E-Sports, we see an increasingly mature industry with blooming niche sectors. Related businesses, including copy right distribution, fan-based operations, franchise and e-commerce, will also see an increase together with E-Sports. Penguin Intelligence joins hands with Tencent E-Sports have launched this report based on product data, consumer surveys, and industry insights. In this report, we’ll discuss: • The profile of E-Sports audiences in China and their behaviors • Most popular fields in Chinese E-Sports • Opportunities in each link of the value chain • User expectations for future tournaments
  5. 5. Highlights of the Report 04 • 60% E-Sports audiences are under 25; the penetration rate of E-Sports in China’s 2nd tier cities has grown to 48% • 79.8% E-Sports audiences choose to watch tournaments at home while 1/3 of audiences have the experience of watching tournaments at net cafés • More than half of E-Sports audiences watch tournaments for more than an hour each time; 21.5% of audiences even watch more than 2 hours • 34.1% of E-Sports audiences are willing to buy a ticket to watch the competitions onsite • 37.5% of E-Sports audiences look forward to the application of VR in game streaming
  6. 6. The New E-Sports Era in China01 E-Sports Audience Overview02 An Explosive Viewership03 The Value Landscape of E-Sports04 Business Opportunities for E-Sports in China05 The Future of E-Sports in China06 Contents
  7. 7. The New E-Sports Era • The Development of E-Sports in China • How E-Sports Became a National Affair 01
  8. 8. The Start of China’s Mobile E-Sports Era 08 1998-2008 Single-Player PC Game Era 2008-2016 Multiple-Player Online Game 2016-Present Mobile Game Era Low Internet penetration rate A limited market Online video games prevailed E-Sports begin in China 产业开始深化并进行结构调整 High adoption of smartphones A year of mobile game tournaments WCG, ESWC, CPL LOL, Crossfire, Dota, Hearth Stone King of Glory, Crossfire: King Shootout, Vainglory Signature Games Feature Tournaments Quake, Counter Strike, Warcraft III, WOW LPL, CFPL, DNF Fight Pro-league, TGA KPL、CFM
  9. 9. Chinese E-Sports Users to Pass 2 Billion 09 The global E-Sports market is growing at a high speed. North America still leads the market in terms of revenue as China contributes 15% to the global market. In 2016, China’s E-Sports market has gained 170 million users, and is expected to hit 220 million at the end of 2017. Global E-Sports Revenue, 2016 North America 38% China 15% Korea 8% Other Regions 39% $463M 2016 Source: Newzoo, iResearch, Tencent IEG Chinese E-Sports Users (Unit:100M) 0.8 1.2 1.7 2.2 2.8 2014 2015 2016 2017F 2018F
  10. 10. 450 Million Potential Audiences in China 10 % 65.7 I haven’t seen a match before, but have plans to do so: 10.9% I have watched E-Sport games: 46.0% I have participated in E-Sport games: 8.8% I'm not interested in E-Sports: 34.3% Source: Penguin Intelligence Survey Engagement of E-Sports Users  8.8% of respondents participated in E- Sports. Over 65% of respondents are interested in E-Sports.  Considering China’s current mobile internet users of 695 million*, there’s a potential market of 450 million users in China. *Source: CNNIC, 39th Statistical Report on Internet Development in China
  11. 11. Mobile Games Lead the Trend 11 Client Games: 35.2% Browser Games: 11.3% Mobile Games: 49.5% Others: 4.0% Market Shares of Video Games in China, 2016 Source: 2016 China Gaming Industry Report, co-launched by GPC, CNG & IDC In 2016, we reached a milestone that the market shares of mobile games surpassed client games to reach 49.5% and became the biggest niche in China. The population of mobile E-Sports users also surpassed that of PC E-Sports users. Mobilization has become an inevitable trend. PC Mobile Population OF China’s E-Sports Users, 2016 (Unit: 100 Million) Source: Tencent IEG Big Data +50MN
  12. 12. 18.3% 59.3% Totally Agreed Agreed Neutral Disagreed Totally disagreed The Social Recognition of E-Sports in China is Rising 12 Social Recognition of E-Sports as a Competitive Sport % 77.6  In 2003, the General Administration of Sports of China listed E-Sports as the 99th official sport in China  In 2004, CPL began to operate in China  In 2012, E-Sports was proposed as an official Olympic sport for 2020  In 2016, to accelerate the development of E-Sports in China, E-Sports was officially discussed in an executive meeting of the State Council As E-Sports developed in China over the past decade, more formal competitive entries appear. E-Sports is no longer regarded as entertainment, but a holistic competitive sport genre. Institutional Recognition Increased 77.6% of E-Sports audience agreed that E-Sports should be taken as a sport. Almost 60% users showed high recognition. Source: Penguin Intelligence Survey
  13. 13. An Overview of E-Sports Audiences • Who are E-Sports Audiences? • Audiences’ Behaviors 02 • The Training of Professionals
  14. 14. Young Men from 2nd Tier Cities Make up the Majority of E-Sports Audiences 14 81% 19% Female Players Take up 19% 30 is the Watershed & 64% Users are 25- E-Sports Has the Highest Penetration Rate in 2nd Tier Cities 20% 44% 26% 10% 1% Under 21 21- 25 26- 30 31- 40 Above 40 12% 41% 17% 17% 13% 45% 48% 43% 46% 45% 1st tier 2nd tier 3rd tier 4th tier 5th tier & below User Distribution User Penetration Source: Penguin Intelligence User Survey Distribution: the percentage of users in all tiers of cities Penetration: Population of E-Sports users in these cities/ All samples from these cities
  15. 15. User Profile: Students + High Income Families 15 69% Users are under College Age 24% Users are from Families of RMB 10,000+ Monthly Income 24% of E-Sports Users are Students 16.5% 28.4% 17.3% 14.1% 14.8% 8.9% Under RMB 3,000 RMB 3,001-5,000 RMB 5,001-7,000 RMB 7,001-10,000 RMB 10,001-20,000 Above RMB 20,0003% 28% 60% 9% 24% 14% 14% 13% 8% Students Blue-collar workers White-collar workers Freelancers Individual businessowner Junior High & Below Senior High College Post-grad & Above Household Monthly Income Source: Penguin Intelligence User Survey
  16. 16. % User Profile: Most Audiences Choose to Watch with Their Friends 40.6 16 40.6% 34.4% 12.9% 9.2% 3.9% 36.3% Who do you watch E-Sports with?  40.6% of E-Sports audiences chose to watch games with their friends. 34.4% chose colleagues/classmates.  It is worth noting that 36.3% of all E-Sports audiences choose to watch games alone. More online game watching use cases can encourage these users to have better social connections. Source: Penguin Intelligence User Survey
  17. 17. Home and Net Café are Primary Locations for Game Viewing 17 79.8% 37.2% 20.7% 7.3% 5.6% Locations for Watching a Game Time Duration for Game Watching 15.4% 30.6%17.6% 14.9% 21.5% Below 30 mins 30-60 mins 60-90 mins 60-120 mins More than 120mins 37.2% of E-Sports users choose to watch at Net Cafes; high speed network and the group watching atmosphere may be the main considerations. 54% of E-Sports users watched more than 1 hour, and 21.5% watched more than 2 hours. The competition has a strong hold on the audience, which has given relevant event media (especially live streaming platforms) super strong user stickiness. Source: Penguin Intelligence User Survey
  18. 18. E-Sports Audiences Love to Share 18 41.1% 33.3% 28.3% 22.5% 20.4% 15.2% Share with friends Search other relevant information Discuss with others on gaming platforms Discuss with others on general platforms Share information to social network "I won't share or search relevant information" Actions After Watching a Game % 41.1  After the event, 84.8% of E-Sports audiences would still do something relevant to the event, like "sharing (sharing with friends)“ and “enjoy the aftertaste (viewing other related information).”  The information chain of the competition continues after the game. It’s worth paying attention to post-game content marketing as well. Source: Penguin Intelligence User Survey
  19. 19. Alternative Life Experience is the Main Drive for Professional Players 19 Occupational Expectation to E-Sports “When will you consider yourself to be a professional players?” 39% of amateur players have long-term career plan to be professional players. Strongest desires are from young people under 25. Demand for professional training is high among young people. The selection and training planning setups need to speed up. For professional players, an alternative life experience is a stronger drive to develop a professional game player career compared with pure financial incentives. 61% 9% 19% 11% Just an interest Want to turn it into a job Want to become an expert Want to make it a life cause Get a different life experience Have an outstanding income Show and share my skills Earn a sense of achievement Get fun Get others' attention "I won't consider to be pro" (Amateur Players Only) (Audiences Only) Source: Penguin Intelligence User Survey “When I can…”
  20. 20. Explosive Viewership • Viewership of Top Competitions03 • Level of Popular Competitions • Types of Popular Competitions
  21. 21. Game Copyright Distribution Landscape of E-Sports in China 21 Game Developers Supervisors Game Publishers Sponsors Content Creators Game Organizers Talent Agencies Clubs & Associations Players Commentator Gaming TV Channels Game Media Live Streaming Platforms UsersChannels E-Commerce Content Authorization Game Organization Game Participation Game Broadcasting Game Distribution Supervision Game Authorization Participation Monetization from Fans User Engagement Commodity Sales Content Monitoring Ad Collaboration User Engagement
  22. 22. Top E-Sports Tournaments Revenue Close to Traditional Sport Competitions 22 5 Billion + LOL Professional League (All Game Seasons in A Year) Viewership Across Platforms in One Game Season Source: Tencent IEG Big Data In 2016, with promotion via online media, especially live streaming platforms, E-Sports have attained unprecedented media attention. The annual viewership of the LOL Professional League reached a cumulative 5 billion viewers. The revenue generated by an E-Sports competition can match that of traditional sports. 700 Million + Cross Fire (All Game Seasons in A Year) Dungeon & Fighter (All Game Seasons in A Semi-Year) 130 Million +
  23. 23. Classic E-Sports Competitions Outreach to 100 Million+ Audiences 23 2016 Twitch Popularity Rank — Cumulative Viewership DOTA2 Hearth Stone Overwatch 480 Million + 460 Million + 160 Million + Source: Twitch
  24. 24. KPL Tournaments Have Phenomenal Success 24 In 2016, KPL created the fastest-growing viewership record in the history of E-Sports with an accumulative 560 million times viewing in a 22-day gaming season. In 2016, total viewership in a 22- day session: 560 Million Viewership of KPL(King Pro League) In 2017, total viewership for the Spring Season: 2.1 Billion Source: Tencent IEG Big Data
  25. 25. % Nation-wide Professional Games Show Strongest Traction 62.2 25 62.2% 45.5% 11.4% 6.9% 24.4% Pro League International League City-level League School League No Preference Level of Competitions with the Most Attention  In all levels of E-Sports, nation-wide professional leagues drew the most attention in E-Sports audiences, followed by international games. There are also 24.4% of E-Sports users who have no fixed preference for the game level, including audiences who choose their preferences based on game types rather than level.  The soaring popularity of KPL, LPL, and other E- Sports professional games are improving the development of E-Sports as a professional sector.Source: Penguin Intelligence User Survey
  26. 26. MOBA Competitions Have a Dominating Popularity 26 63.2 Most Viewed Game Type MOBA % 63.2% 46.9% 31.2% 14.6% 12.2% 8.8% 7.4% 6.0% 5.7% 4.4% MOBA Action & Fighting Game Shooting Game Racing Game MOK Board & Card Game Sport Games Parkour Game TCG Music Game Strategic and operational Multiplayer Online Battle Arena (MOBA games, such as King of Glory) competitions are the most popular type among E-Sports audiences. Apart from the huge user base of the game, the strong emergence of the game and the mature game operations are also essential to its success. Source: Penguin Intelligence User Survey
  27. 27. The Value Landscape of E-Sports • The Direction for Development • User’s Focus Point 04 • Value of Promotion Channels
  28. 28. Professionalism of E-Sports is Well-recognized 28 “In your eyes, E-Sports is…”  At present, 70% of E-Sports audiences show high recognition for E-Sports in various sectors.  Most users recognize the professionalism of E-Sports. High level professional leagues also receive the most attention from users. Occupational Entertaining Emerging Widely particpatory 70% Source: Penguin Intelligence User Survey
  29. 29. 29 User Focus Point Map of E-Sports Competitiveness Professionalism Internationalism Entertainment Game Atmosphere Scale of the Competition Viewing Experiences Rewards  Audiences’ attention to E-Sports games are now shifting from focusing on only graphic experiences to a diversity of dimensions. Based on Penguin Intelligence’s Focus Point Map, audiences now focus most on the competitiveness and professionalism of a game. Source: Penguin Intelligence User Survey
  30. 30. Primary Media Channel: Vertical Game Sites 30 55.7% 41.0% 26.1% 24.6% 21.0% 15.7% 15.4% 6.8% Game Sites(Official Site/APP) Portal News Sites Search Engine Social Media Forums Clubs/Teams Friends TV/Broadcast/Print Channel for E-Sports Information % 55.7  Channel-wise, the distribution of game-related information is still highly dependent on users’ proactive searches. Social channels haven’t yet revealed value in E-Sports-related contents distribution. Source: Penguin Intelligence User Survey
  31. 31. Business Opportunities of E-Sports in China • Demands for Game-related Events • Audiences’ Paying Potential 05 • E-Sports’ Investment Opportunities
  32. 32. A Tipping Point for E-Sports 32 Low Professional Level Underestimated Business Value Immature Business Eco Three Pain Points • Professionalized game content and operation • Customized copyright operation strategy • Co-development of fan engagement together with sponsors • Regulated business eco for future development Compared with mature E-Sports business operation in Europe and the North America, the commercialization of E-Sports in China is still at the exploration stage. Pro Leagues are now bringing together many professional players and clubs. By establishing industry-wide standards on income distribution, event agency model, professional training models, and other sectors, it’s building up a mutually beneficial ecosystem for all stakeholders in the business. League Model A mutual-beneficial system for organizers and clubs 100+ Pro Players12 Clubs KPL Open & Share Local ize Profe ssion alize KPL Founded
  33. 33. Business Opportunity: Copyright Distribution & IP Development 33  Nearly 40% of respondents showed interest in gaming live streaming/broadcast, which is the core value of E-Sports in the eye of the user. Second, game commentators, top teams, and star players are more likely to see a fast boost in fame.  From the core of copyright distribution to the extension of IP development, E-Sports shows a great variety in business possibilities in the long run. Game Streaming 39.7% E-Sports Commentary E-SportsStars, Teams,&Clubs E-SportsFiction,Movie, Comics,Animation E-SportMusic E-SportsRelatedNews E-SportsRelatedApparel, Toys,&Decorations E-SportsRelated RealityShows 35.4 % 31.2 % 27.4 % 22.2 % 19.2 % 18.8 % 16.1 % Source: Penguin Intelligence User Survey
  34. 34. Users Show Great Paying Willingness 34 34.1% 30.7% 27.9% 24.0% 19.3% 19.3% 17.0% 16.4% Tickets for Onsite Game Watching Hi-Resolution Streams Ad Removal Lottery for Franchised Products Right to Interact with Teams/Stars Multi-view Shooting High Speed Streaming Game Commentary Products Users are Willing to Pay for  Tickets for top-level professional games are often sold out immediately after release. Onsite game watching experiences have also gained users’ highest willingness to pay. The demand is far from satisfied with an enormous market potential.  Other sectors users are willing to pay for include high-definition quality streams and ad removal service. Users also expect more innovative privileges.% 34.1Source: Penguin Intelligence User Survey
  35. 35. Users’ Expectations in the Future 35 47.1% 41.5% 37.5% 36.4% 36.3% 36.1% 34.7% 33.3% 33.3% 32.5% 31.8% 28.3% 24.4% 18.7% Users’ Expectations for Different Aspects In the future development of E-Sports in China, users have the highest expectation for the improvement in the competition system & future directions (e.g. fair rules, professionalization, and internationalization) as well as new technology application (e.g. VR) and viewing experience optimization. Audiences also expect players’ and commentators’ skills to be improved. System/ Direction Content Tech/Experience Channel/Marketing Source: Penguin Intelligence User Survey
  36. 36. The Future of E-Sports06
  37. 37. The Dawn of E-Sports in China 37 2016 is a year of opportunity for E-Sports. In April, the National Development and Reform Commission (NDRC) proposed to list E- Sports as one of the top ten transformative consumer activities. In July, the National Sports Industry General Bureau issued the "Sports Industry 13 Five Plan," mentioning an acceleration of the development of E-Sports and other related sports and fitness industries. In September, the Ministry of Education include E- Sports as an additional specialty in the Declaration of Enrollment of the 2017 Higher Vocational Schools. The development of E- Sports industry began to enter the fast lane under various policies and became mainstream. Supportive Regulations Lead E-Sports into the Mainstream 1
  38. 38. Professionalization is Now a Trend 38 2 In 2017, China's E-Sports audiences were expected to surpass 200 million. Positive promotion and direction usher in an increasing social recognition of E-Sports. With a large existing and potential user base, China's E-Sports shows a quick catchup to traditional sports and even a capacity to lead in the field. 38.5% of amateur players have a long-term career goal to turn professional, especially among players around 25. It has great potential for the development of training services for areas such as professionalized competition, talent agencies, and game operations. Professionalization Accelerates the Development of Related Fields
  39. 39. Technology Brings an Elevation of Viewing Experiences 39 3 In 2016, in the KPL, AR was applied in mobile E-Sports competition streaming for the first time. League of Legends and DOTA2 have also set up their own VR watching system. The new technology has given the audience a new visual experience and unexpected impact. In the survey, nearly 40% of users are looking forward to the application of VR technology and an upgrade of viewing experience. No matter the AR presentation onsite, VR on live streaming platform, or OB perspective optimization, all these technologies are waiting for breakthroughs for an even better user experience. Technological Innovation Creates New Experiences
  40. 40. Create More Options for Game-viewing 40 In terms of game-related information acquisition, more than half of audiences still rely upon proactive research. The power of communication via social channels is yet to be realized. But about half of all users will share information with friends after watching games. Social channels still have the potential to be important channels for game-related information distribution. It’s also worth noticing that about 40% of audiences watch games alone. More options for game-watching, such as organizing fan clubs and offline game-watching events, may possibly be a direction for the future of E-Sports as a social event. Use Social Channels to Expand Influence 4
  41. 41. Great Potential for Advertising 41 A Rising High Quality User Group 5 Although E-Sports have accumulated a large amount of users, the average revenue per capita is less than US$ 4. Even though some institutions predict that the figure will grow to US$5.2 in 2017, it’s still less far less than those of basketball, football, and other mature sports. There’s still a long way to go for the commercialization of E-Sports, but at the same time it is a great opportunity. E-Sports audiences in China are young and willing to adventure with a good average family income, and they are also the target of many brands. In comparison with high-priced advertising for super events like Super Bowls, the return on sponsorship is more rewarding.
  42. 42. Chances Also Lie Offline 42 Develop With E-Sports Venues at Core 6 From game development to event organization, and then to the prosperity of E-Sports spin-off sectors, E-Sports industry parks will see industry-wide prosperity with game organization services at its core. At the same time, E-Sports industry parks will also support the development of the entire E-Sports ecology to achieve a mutually beneficial business model. Users’ high willingness to pay for onsite viewing experiences also offers the foundation for the expansion of offline E-Sports venues. The development of E-Sports industry parks also shows more future opportunities for offline E-Sports services.

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