While the digital revolution has become the norm in our everyday lives, from how we communicate, work and consume culture. It has gone one step further, entering the sporting world.
Esports is organised and competitive computer gaming, that according to Esports research house Newzoo, 2016 revenue totalled $493 million and is projected to rise 37% to $1.1 billion by 2019.
Expand have recently launched their Esports division and will be attending Gamescon to discuss how they can support businesses growth within this exploding market.
Why are major sports teams buying Esports teams?
Professional sports clubs are looking to Esports, either buying existing teams or creating their own using their established brands. There’s an obvious financial benefit of having a team, it raises their profile and attracts new supporters, as Esports tournaments are broadcast worldwide.
Where is the money coming from?
Without a reliable source of income from broadcasting rights or a revenue share deal with games publishers, it is estimated that around 95% of the money generated by Esports teams comes directly from sponsorship.
Coca-Cola is an example of a brand that has become popular in the E-sports community, most noticeably for sponsoring the League of Legends world championship. Through live events and sponsorships, big brands such as YouTube, Google, and Twitch are earning the respect of brand-wary gamers by helping to elevate Esports as a real sport.
What is the predicted growth of eSports?
More than six billion hours were dedicated to watching professional gaming last year, up 19% since 2015. By 2021, IHS expects global Esports viewing to surpass 9 billion hours. It’s easy to see why traditional media companies are capitalising on this growing trend just before it floods into the mainstream.
Esports will also be a medal event in the 2022 Asia Games, which could pave the way for full Olympic status.
Daniel Openshaw Senior Consultant explained; “Sports competitors are athletes as they must train, stick to a strict regime and prepare to compete, therefore it should definitely be perceived as a real sport. I would love to discuss the opportunities I have within Esports and I am looking forward to discussing how our market knowledge and previous success can benefit businesses at Gamescon.”
Expand are attending Gamescon from the 22nd to the 26th of August in Cologne. This event is the leading European trade fair for digital gaming culture and is the meeting point for global companies from the entertainment industry and the international gaming community.
Do you want to arrange a confidential meeting to find out how our service can help you recruit experts within the sector? Contact Daniel today.