SuperData's Joost van Dreunen takes a look at the audience and market potential of competitive gaming. This talk will focus on the current industry’s trajectory, revenue distribution, the opportunities and challenges this burgeoning market presents for marketers interested in getting in on the ground floor.

1. THE COMPETITIVE GAMING OPPORTUNUTY, FEBRUARY 2017 | © 2017 SuperData Research. All rights reserved.
February 16, 2017
Prepared for A-List Summit, Los Angeles
Analyst Perspec@ve:
The Compe@@ve
Gaming Opportunity

2. THE COMPETITIVE GAMING OPPORTUNUTY, FEBRUARY 2017 | © 2017 SuperData Research. All rights reserved.
Image credit: Red Bull
EVO 2016 ELeague CS:GO Major

3. THE COMPETITIVE GAMING OPPORTUNUTY, FEBRUARY 2017 | © 2017 SuperData Research. All rights reserved.
144,000147,000
EVO 2016 ELeague CS:GO Major
Image credit: Red Bull. Source: The Next Level.

4. 4
JOOST VAN DREUNEN
CEO & co-founder
@joosterizer
4

5. WATCH PLAY BUY
Viewing gamer
audience
Ac0ve gamer
universe
Gamer
spending
Data Digital Video Consumer Behavior Transac@on-level
Metric Unique Viewers Monthly Ac@ves Revenue per Player
KPIs Reach
Sessions, Purchase
Intent, Mindshare
Spending,
Rankings
5
Level of Engagement
Data-driven offering built on informa@on collected across relevant consumer touchpoints.
SuperData’s perspec;ve on next-gen entertainment.

6. 6
Selected customers

7. 77
SuperData approach to eSports industry
Teams
Publishers
Consumer
Data
PlaHorms
Logins
Play-@me
Merchandise
Ticket Sales
Streaming Data
Fanbase
Viewership

8. 8
Q: How big is the opportunity for compeOOve gaming?
8

9. 99
Watch but
don’t play
Play but
don’t watch
Watch +
Play
83.6M 146.7M
eSports: biggest opportunity lies in its reach.
Just over half of all monthly ac@ves also watches others play games online.
123.5M
1.1BWorldwide audience for
Gaming Video Content
eSports Viewing Audience

10. Life-Cycle of the eSports Industry: 2007–2025E
$1B
$2B
2007 2014 2017 2020 2025
THE COMPETITIVE GAMING OPPORTUNITY, FEBRUARY 2017 | © 2017 SuperData Research. All rights reserved.
10
Emergent
behavior
1

11. 2
Life-Cycle of the eSports Industry: 2007–2025E
$1B
$2B
2007 2014 2017 2020 2025
THE COMPETITIVE GAMING OPPORTUNITY, FEBRUARY 2017 | © 2017 SuperData Research. All rights reserved.
11
💀
Amateur Circuit
Valley of Death
1

12. 12
$7.1B
UNBOXED
Entertainment is shiXing
2015 Revenue for US entertainment markets
Ranked by size in GBP (£) billions, CAGR: 2005-2015
Source: Mo@on Picture Associa@on of America, Recording Industry Associa@on of America, Na@onal
Cable & Telecommunica@ons Associa@on, and the Newspaper Associa@on of America.
Cable TV 47 -0.10%
Broadcas@ng TV 34 -0.62%
Video Games 19 +7.87%
Newspapers 17 -8.19%
Radio 14 -1.10%
Magazines 13 -6.77%
Film Box Office 9 +1.74%
Music 7 -4.76%
12

13. 2 3
Life-Cycle of the eSports Industry: 2007–2025E
$1B
$2B
2007 2014 2017 2020 2025
THE COMPETITIVE GAMING OPPORTUNITY, FEBRUARY 2017 | © 2017 SuperData Research. All rights reserved.
13
Growth
PopularizaZon
Investment
IrraZonal Exuberance
M&A
1

14. 14
“The average age of a NBA, MLB, or NHL season Ocket holder is
probably in its 50s. Not probably. It is!”—Andy Miller, NRG eSports
14

15. 15
TradiZonal sports audiences decline
1984 1994 2004 2014
MLB World Series audience: 1984—2015
Millions of viewers
Source: MLB.
37M
15M
The average age of a
baseball viewer is 53.
15

16. 16
Q: Will AcOvision eventually negoOate with CBS over sports-
licensing fees for people to watch AcOvision games?
“Absolutely.”
Source: Adweek.
16

17. 2
Life-Cycle of the eSports Industry: 2007–2025E
$1B
$2B
2007 2014 2017 2020 2025
THE COMPETITIVE GAMING OPPORTUNITY, FEBRUARY 2017 | © 2017 SuperData Research. All rights reserved.
17
Slope of Reality
Growth
31

18. 18
Source: Fusion Media Network.
“Right now it’s a gold rush to buy and sell
and build teams. That’s creaOng a
confused market.”
18

19. 2
Life-Cycle of the eSports Industry: 2007–2025E
$1B
$2B
2007 2014 2017 2020 2025
THE COMPETITIVE GAMING OPPORTUNITY, FEBRUARY 2017 | © 2017 SuperData Research. All rights reserved.
19
Whoa!!
Business Model
Ra@onaliza@on
431

20. 2 4
Life-Cycle of the eSports Industry: 2007–2025E
$1B
$2B
2007 2014 2017 2020 2025
THE COMPETITIVE GAMING OPPORTUNITY, FEBRUARY 2017 | © 2017 SuperData Research. All rights reserved.
20
Business Model
Ra@onaliza@on
ConsolidaZon
Shake out
Pros vs Joes
31

21. 2
Life-Cycle of the eSports Industry: 2007–2025E
$1B
$2B
2007 2014 2017 2020 2025
THE COMPETITIVE GAMING OPPORTUNITY, FEBRUARY 2017 | © 2017 SuperData Research. All rights reserved.
21
Business Model
Ra@onaliza@on
ConsolidaZon
Shake out
Pros vs Joes
431

22. 2222

23. 2
Life-Cycle of the eSports Industry: 2007–2025E
$1B
$2B
2007 2014 2017 2020 2025
THE COMPETITIVE GAMING OPPORTUNITY, FEBRUARY 2017 | © 2017 SuperData Research. All rights reserved.
23
Maturity &
Ascendance
5431

24. 24
Video the next fronZer
Channel
Subscribers
(Millions)
Music 94
Games 77
Sports 75
Movies 44
News 33
TV Shows 11
Live 2
360 Videos 1
Source: YouTube.
24

25. 25
Channel compeZZon
Channel distribuOon: Gaming Video Content vs. eSports
Cumula@ve results, n=3,682 qualified respondents
Twitch
YouTube
YouTube Gaming
Facebook
MLG
Ustream
ESL.tv
Play.tv
Azubu
Dailymo0on Gaming
DingIt
Hitbox
MobCrush
Kamcord
Playsta0on SharePlay
Other
Source: SuperData Player Profile. August 2016, United States.

26. 26
Media economies of scale
26
$175B
$132B
$75B

27. 2727
AuthenZcity is the currency

28. 28
Boys club
Gender distribuOon by channel
Cumula@ve results, n=3,682 qualified respondents, US
Facebook
Playsta@on SharePlay
GamingLive
YouTube
YouTube Gaming
Ustream
Dailymo@on Gaming
DingIt
Play.tv
MobCrush
Twitch
Azubu
Hitbox
ESL.tv
MLG
Kamcord
Female
Male
Source: SuperData Player Profile.

29. 29
Audience profiling and programming
Age distribuOon for major eSports Otles
Cumula@ve results, US audience
13 to 17 18 to 24 25 to 34 35 to 44 45 to 54
Call of Duty Series
Counter-Strike
Dota 2
League of Legends
Hearthstone
Source: SuperData Player Profile.

30. 30
Overwatch demographics
Audience age breakout and gender distribuOon
United States, Overwatch compared to Shooter Genre average
>
18
18
to
24
25
to
34
35
to
44
45
to
54
55
to
64
65+
M
ale
Fem
ale
Overwatch Shooter-genre
average 64%
36%
83%
17%
Source: SuperData Player Profile.

31. Summary
Addressable audience for compeZZve gaming at 234 million people in 2017E.
Publishers are acZvely pursuing a strategy focused on generaZng ad revenue.
eSports industry enters a period of Business Model RaZonalizaZon.
Accurate targeZng and authenZc brand messaging miZgates the risks inherent in
an early, volaZle market.
31

32. 32
THANK YOU
JOOST VAN DREUNEN
SuperData Research, CEO
@joosterizer