Esports revenue to see %41 increase this year claims report

Esports, or competitive gaming had seen some huge numbers the past couple of years and it looks like the sail will continue to be smooth revenue-wise, or so claims report by research firm.

Newzoo’s report says that this year will see a 41.3 percent increase in revenue from 2016. By 2020, it’s expected to reach a massive $1.488 billion in global revenue. Sponsorship revenue is a major driver for this number, with endemic and non-endemic brands entering esports in droves. Advertising revenue follows second with an estimated $155 million to be generated in 2017. That number is expected to grow to $224 million by 2020.

The most growth is slated for exclusive content deals, however, like you’d see with sports. Media rights could bring in $95 million this year; $340 million is expected by 2020.

“For brands, media, and entertainment companies, esports provides a chance to capitalize on the favorite pastime of digital natives and millennials: playing games and watching game content.” Says Newzoo, explaining how the young Esports crowd is appealing to brands and companies seeking that demography.

If the market’s predictions are correct then it’s going to be another massive year for esports, which translates to more tournaments and bigger prize pools as well.