Esports revenue in the United States from last year is forecasted to nearly triple in 2021 and hit $300 million, according to a recently-launched PwC report that analyzes historical data, consumer spending and analysis across 17 different industries.
The Global Entertainment and Media Outlook 2017-2021 highlighted a number of key factors for esports growth and hitting mainstream conscious, including coverage from ESPN.
“The development of esports has grown at a breakneck pace in the U.S. over recent years, receiving perhaps its biggest boost into the mainstream when ESPN began covering major events on both its streaming and regular channels — most notably the August 2015 final of The International, a tournament for Defense of the Ancients 2 (Dota 2),” read the report.
Streaming sites like Twitch, which is endemic to the sport, have contributed to the further distribution of esports as publishers, tournaments organizers and teams hope to broaden the fan base globally. In 2016, Twitch users streamed 241 billion minutes of video, five years after the site “became an early home for esports.”
Not only have professional gamers and amateurs been natural users of Twitch, but mainstream athletes like San Francisco Giants outfielder Hunter Pence and Tampa Bay Lightning winger J.T. Brown, to name two, are early adopters of the new form of fan engagement. More endemic events like gaming marathons from the White House have occurred as well.
Below are other pieces of information the PwC report cites for contributing to the rise of esports along with additional revenues and noteworthy events.
1) Streaming advertising revenue around esports is forecasted to increase from $33 million in 2016 to $148 million in 2021, making streaming the “biggest contributor” to esports revenue.
2) A year ago, Turner and WME/IMG announced the launch of ELEAGUE, which has broadcasted on Twitch followed by a show on TBS.
3) Twitter is currently streaming 1,500 of esports content through partnerships with ESL One, Intel Extreme Masters and Dreamhack.
4) Esports sponsorship revenue in the U.S. is projected to almost double from 2016 to 2021 ($44 million to $84 million).
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5) PwC said the Philadelphia 76ers’ move to become the first U.S. professional sports franchise to purchase esports franchises will allow the team to “get a named presence at esports tournaments, while their newly signed-up players can also live stream and create content under their parent owner’s banner.
“If the space continues to grow exponentially, sports teams such as the 76ers that become early movers will have the upper hand — as well as a usefully sized stadium for hosting tournaments.”
6) Earlier this year, the NBA also announced its plans for a 2K esports league, with 17 teams set to participate next year.
7) Finally, the esports analysis illustrated the venues being used for majors, such as the 2016 League of Legends World Championship that was sold out at Madison Square Garden and Staples Center. In 2012, the same event was held at Galen Center in Los Angeles. As the report explained, esports consumer ticket sales revenue is projected to increase last year from $11 million to $26 million in 2021.
Here is the full report.