Esports revenue predicated to quintuple by 2024
Esports has truly burst into the mainstream public consciousness this year, culminating in Fortnite’s World Cup in July, with an unprecedented audience size and a $30 million pot of prize money.
Today, esports can make an individual player just as rich as a real world sports star, and the Fortnite World cup peaked at 2 million concurrent views, dwarfing all previous esports totals, and potentially making involved companies richer still.
Due in part to esports’ breakthrough in China and South Korea, there is yet more to come from the Asia Pacific region, especially as more varied demographics are welcomed.
A new report conducted by Rethink Technology Research has found that esports revenue will leap from $900 million in 2018 to $5.05 billion in 2024, with revenues split between game publisher fees, sponsorship, media broadcasting rights, tickets and merchandise, tipping and advertising.
The revenue growth is accelerating ahead of the rate for acquiring new esports enthusiasts, which itself will go from 154 million in 2018 to 377 million in 2024. There is a rising revenue per fan.
For Pay TV operators that have yet to make a play in esports, the opportunities will come primarily through growth in casual viewing, attracted by “sanitised” esports competitions with appeal beyond enthusiasts. There will be scope for traditional media firms to gain media rights and sell advertising. A key aspect of the forecast is that revenues from media rights, where broadcasters gain rights to broadcast tournaments, are set to climb more steeply than any other category of esports monetisation over the next five years, increasing more than 12 times.