The document discusses the growth of the eSports economy and audience. It notes that the number of eSports enthusiasts, who frequently watch competitive gaming, will surpass 100 million this year. eSports enthusiasts have higher incomes and spending habits than average gamers or the general population. The eSports industry is growing rapidly and generating significant revenue from media rights, sponsorships, advertising, and tournaments, with total revenues expected to reach over $100 billion by 2017 and begin to approach revenues from traditional sports leagues. The document argues that eSports represents the convergence of broader trends in consumer media and entertainment.

1. The eSports Economy
Trends, Audience and Revenue
Growth Towards 2017
Peter Warman, CEO Newzoo

2. eSports is about being the best gamer…
2

3. 3
eSports is about entertaining crowds…

4. eSports is about winning…. and…
4

5. eSports is about winning…. and… betting
5

6. What and where is this?
6

7. What and where is this?
7
What’s Special?
$1M Per
Player is the
same as the
World Cup
3rd Place
Prize Money.
Up 6X YoY.
What’s Special?
$8M Was
Crowd Funded
by $2.50 of
every $10.00
donation,
making Valve
$24M
$10M
Prize Pool
$5M
Winning Team
BROUGHT BY BOUGHT BY
$1BN
DEAL

8. The eSports EcoSystem
8
e.g.
e.g.
e.g.
e.g.
e.g.
e.g.
© 2015 Newzoo

9. Streaming (game) content
9

10. Game(r) content rules Youtube
10
1 Minecraft
2 Call of Duty
3 Grand Theft Auto
4 Angry Birds
5 Super Mario
6 League of Legends
7 FIFA
8 Halo
9 World of Warcraft
10 Battlefield
Based on number of views (all-time)
Top 20 Game Franchises On
11 Assassin's Creed
12 Final Fantasy
13 Mortal Kombat
14 The Elder Scrolls
15 Team Fortress
16 Legend of Zelda
17 Dota 2
18 Counter-Strike
19 Left 4 Dead
20 Need for Speed
New monthly ranking by
Subscribers
93%-99% of game views involve consumer-generated content
Generated 37% of top 20 game
views

11. Media in 2005
11
PRO PRO
PRO
CGC
“PROSUMER”
2005
ART/DESIGN
Made by “professionals”
MOVIES/GAMES
Made by “professionals”
ADVERTSING/MAIL
Made by “professionals”
EXPERIENCE CREATE
SHARE
Approximately 1% of consumers are “prosumers”

12. Media in 2015
12
SHARE
PRO PRO
PRO
CONSUMER GENERATED
CONTENT & DIRECT
CONSUMER EARNINGS
“POWER TO
THE PEOPLE”
ART/DESIGN
Made by “professionals”
MOVIES/GAMES
Made by “professionals”
ADVERTSING/MAIL
Made by “professionals”
Enabling
Platforms &
Tools
Curse, Twitch, YouTube
Channels, Fundly,
Instagram …
2015
© 2015 Newzoo
EXPERIENCE CREATE
Everyone Creates and Shares Unique Experiences

13. 13

14. 14

15. eSports audience levels of engagement
15
Occasionally watches
professional and amateur
competitive gaming
Regularly watches
professional and amateur
competitive gaming
Watches & sometimes
participates in (amateur)
championships
Watches & regularly
participates in
(amateur)
championships
esports Enthusiasts Occasional Viewers
Source: Newzoo Global esports Audience Model
Of all eSports viewers around 40% does not
play the games themselves
Global eSports Audience per Type

16. The Value of eSports Enthusiasts
16
53%
Have a
full-time job
vs. 37% of the total population
30%
Is in the high
income bracket
vs. 22% of the total population
41%
Owns an
iPad
vs. 29% of the total population
29%
Has a headset
budget over $100
vs. 13%of all gamers
2014 US DATA
eSports Sponsors eSports Enthusiast Profile

17. Global eSports Audience Growth
17
FREQUENT VIEWERS / ENTHUSIASTS
OCCASIONAL VIEWERS
CAGR: +20%
2012-2017
Source: Newzoo Global esports Audience Model
This year, the number of eSports Enthusiasts will surpass 100 million

18. eSports Enthusiasts & Growth
18
54% of eSports Enthusiasts are from Asia

19. Revenue Streams Comparable to Sports
19
Merchandise, Licensing & Tickets
Media Rights
Online Advertising
Sponsorships
Game Publisher Investment
Source: Newzoo Global esports Revenue Model
Gaming as a whole compares well to sports:
Sports fans: 2.2Bn, Gamers: 1.7Bn (2.1Bn in 2017)
Sports Revenues: $124Bn, Game Revenues: $83.4Bn ($107Bn in 2017)

20. IceHockey Fans vs eSports Enthusiasts
20
94M94M 89M89M

21. Will revenues also compare to IceHockey?
21
94M94M 89M89M

22. e.g.
e.g.
e.g.
e.g.
e.g.
e.g.
© 2015 Newzoo
eSports is just the tip of a huge iceberg

23. eSports shows us new revenues and business models

24. SHARE
PRO PRO
PRO
CONSUMER GENERATED
CONTENT & DIRECT
CONSUMER EARNINGS
“POWER TO
THE PEOPLE”
ART/DESIGN
Made by “professionals”
MOVIES/GAMES
Made by “professionals”
ADVERTSING/MAIL
Made by “professionals”
Enabling
Platforms &
Tools
Curse, Twitch, YouTube
Channels, Fundly,
Instagram …
2015
© 2015 Newzoo
EXPERIENCE CREATE
eSports is at the nexus of trends relevant for everyone

25. Thank You!
www.newzoo.com/esportsreport
Peter Warman, peter@newzoo.com