Games and esports analytics provider Newzoo has released its annual report on the esports market for 2020.
The report is headlined with the statement that the esports industry will produce revenues in excess of $1 billion (£773.1 million) discounting that earned from broadcast platforms.
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As per Newzoo’s estimate, sponsorship will generate $636.9 million in revenue – a significant increase from 2019’s $543.5 million. Following sponsorship in consecutive order of amount of revenue generated are media rights, merchandise and tickets, publisher feeds, digital, and streaming. A total figure of $1.1 billion (£852 million) is projected to be reached across all revenue streams for the year.
Touching on esports’ audience, Newzoo’s report estimates that 495 million people will watch globally in 2020, with “esports enthusiasts” making up 222.9 million of that total figure. Audience and awareness numbers are increasing significantly in regions such as Latin America, Middle East and Africa, and Southeast Asia.
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Peter Warman, Co-founder & CEO of Newzoo, commented in a release: “The esports market has flourished more than ever before over the past few years, and we’ve seen individual countries, regions, and markets evolve in different ways. Each market now has its own form and flavor, a combination of different game preferences, platforms, and market conditions that makes each one unique. Appreciating the differences between these markets is vital for anyone looking to enter—or better understand—the space.”
Esports Insider says: The Newzoo report provides great insight into the entire esports industry. Across the board, there appears to be plenty of cause for optimism, with growth and revenue streams set to continue rising for the next three years. If the report is accurate, then the industry is set to continue its expansion.