Follow Paisa to see what changes have taken place in the e-sports market in the new year?
Editor’s note: This article comes from WeChat public account “ECO E-sports” (ID: ECO-esports ) , the author sent sauce, reproduced with permission.
In recent years, the global e-sports industry has entered a shockingly rapid development stage. For example, in our lives, games such as “Fortress Night” and platforms like Twitch, they were originally in the field of e-sports. Professional content has now become a nationwide cultural phenomenon.
The history of e-sports can be traced back to a game hosted by Stanford University in the United States in 1972. At that time, the rewards of the contest winners were only a one-year free subscription to magazines. Now, e-sports champions can Enjoy heroic honors. There is no doubt that the rise of the e-sports industry and e-sports culture in mainstream society is amazing, and the future may be brighter.
According to Newzoo statistics, the global e-sports market size will reach more than 1 billion US dollars in 2019, so many people predict that by 2025, the global e-sports market size will grow to about 2.5 billion US dollars.
Fulida Law Firm and TEO (editor’s note: the world’s leading e-sports industry media, headquartered in Berlin, Germany) conducted the second industry survey. E-sports industry professionals are very optimistic about the development prospects of the e-sports industry They saw investors entering and doubling, the source of income constantly changing, and the ratings of the event continued to grow.
This survey asked more than 200 executives, mainly from e-sports and traditional sports clubs, e-sports leagues, e-sports media companies, industry agencies and consultants, to assess the future direction of the e-sports industry.
Through research interviews, we clearly see the huge driving force and potential of rapid and iterative development of technology for the industry. Over millions of fans have watched e-sports events to watch ads, purchase products, raise funds for activities, and follow their favorite Players and brands, as well as the purchase of game items.
In 2020, advertising and sponsorship are expected to account for the highest proportion of e-sports industry revenue, which will exceed game item purchase conversions and event content copyright distribution. However, many industry observers predict that the distribution of competition content copyrights may become the leader in income sources in the next few years. However, as the development of the e-sports industry is still in its infancy, it will take some time for this source of income to reach the top day.
Investors are also pouring in. Respondents expect that PE and VC will increase their investment in e-sports next year. Such growth was unimaginable a decade ago. In addition, traditional sports clubs, sports leagues, athletes and celebrities are also expected to further increase their investment in e-sports this year.
Of course, the rapid growth of the industry will also be accompanied by more problems-especially in terms of laws and regulations. Compared with the first survey in 2018, interviewees have paid more and more attention to the issue of IP licensing and manufacturer licensing leniency in e-sports projects, as well as contestants’ individual rights and contract fairness.
Despite many challenges, most signs point to an encouraging direction-there is no doubt that the e-sports industry will get better and better.
Selected Research Reports
01. Who will invest heavily in / addition to e-sports?
According to the survey results, the industry predicts that PE and VC investment in e-sports will increase in 2020. The number of respondents who choose this option has reached 47%. In the first survey in 2018, this number It is only 39%, an increase of 8%, and it is also one of the most growing t-options, which indicates that the e-sports industry is maturing and it is becoming more attractive to investors who want high returns.
Traditional sports clubs, sports leagues, athletes and celebrities are expected to increase their investment by 47%, down from 57% in the first survey. Although there has been a decline in the data, this does not mean that it is looking down, but that it shows that traditional sports have made great achievements in the field of e-sports, and it is likely to continue.
In fact, 88% of those surveyed who believe that traditional sports will increase their investment in e-sports will increase their investment in e-sports to a large or moderate degree.
02. Esports Will it be a rival to traditional sports?
Almost 90% of the respondents believe that the development of e-sports will affect the growth of traditional sports audiences. Less than 10% of people disagree with this statement. There is no doubt that the emergence and rapid development of e-sports will be Become an important opponent of traditional sports development.
For traditional sports, 71% of the respondents believe that the advent of e-sports will make traditional sports pay more attention to the content application of digital media platforms and live broadcast platforms; 57% of the respondents believe that e-sports The challenge for traditional sports mainly arises from the intensified competition among audiences, especially millennials. Their social circle naturally favors e-sports, especially in countries and regions where traditional sports culture is relatively underdeveloped.
03. Brand advertising and sponsorship Still the No. 1 source of revenue for the gaming industry
As with the results of the first survey, the vast majority of respondents believe that brand advertising and sponsorship are expected to remain the largest source of revenue for the global esports market in 2020. The jump from 41% in the first survey to 51% in the second survey reflects the increasing participation of local and non-local brands. Game prop purchases and conversions surpassed the distribution of competition content copyrights to become the second largest source of estimated revenue.
04. M & A and integration of industry companies
Respondents expect that M & A transactions by industry companies in various categories will increase. The first place is the live broadcast platform (62%), the second is the event and event operating company (60%), the first Three are clubs in the franchise league (59%).
This shows that the size of the e-sports market is still growing, and industry insiders predict that as the industry matures, the e-sports industry around the world will further integrate regionally.
05. Esports development problems
68% of respondents believe that the phenomenon of “fake ball” (game manipulation) will pose a major threat to the legality and growth of e-sports. Of these, 47% cited the lack of a match fraud detection system as a key factor.
In addition, because e-sports has the characteristics of IP privatization, game manufacturers tend to be highly centralized, so game manufacturers’ control over their projects and their potential restrictions on industry development are also the issues that respondents are most concerned about Only 5% of the respondents think this issue is not important.
For 70% of the respondents, it is imperative to keep abreast of legal issues and comply with regulations first. Project IP licensing issues jumped from 50% in the first survey to 61% in the second survey, and concerns about contracts that did not provide adequate protection for professional players jumped from 43% to 54%.
06. United States, China, India will become the country and region with the most growth potential in e-sports
Respondents said that e-sports companies in the US (60%) and China (56%) are the most promising investment opportunities for e-sports in the next five years. But respondents are also bullish on the potential of developing countries, including India (32%), Southeast Asia (24%), and South America (22%).
About Filida Law Firm
Foley & Lardner LLP is an international law firm founded in the United States in 1842. According to data from the American Lawyer Magazine, the company ranked 39th in the 2011 AmLaw 100 US law firm, with a total revenue of $ 633 million in 2010.
About TEO
TEO (The Esports Observer) is the world’s leading e-sports business news and analysis media.
According to the survey results, the industry predicts that PE and VC investment in e-sports will increase in 2020. The number of respondents who choose this option has reached 47%. In the first survey in 2018, this number It is only 39%, an increase of 8%, and it is also one of the most growing t-options, which indicates that the e-sports industry is maturing and it is becoming more attractive to investors who want high returns.
Traditional sports clubs, sports leagues, athletes and celebrities are expected to increase their investment by 47%, down from 57% in the first survey. Although there has been a decline in the data, this does not mean that it is looking down, but that it shows that traditional sports have made great achievements in the field of e-sports, and it is likely to continue.
In fact, 88% of those surveyed who believe that traditional sports will increase their investment in e-sports will increase their investment in e-sports to a large or moderate degree.
02. Esports Will it be a rival to traditional sports?
Almost 90% of the respondents believe that the development of e-sports will affect the growth of traditional sports audiences. Less than 10% of people disagree with this statement. There is no doubt that the emergence and rapid development of e-sports will be Become an important opponent of traditional sports development.
For traditional sports, 71% of the respondents believe that the advent of e-sports will make traditional sports pay more attention to the content application of digital media platforms and live broadcast platforms; 57% of the respondents believe that e-sports The challenge for traditional sports mainly arises from the intensified competition among audiences, especially millennials. Their social circle naturally favors e-sports, especially in countries and regions where traditional sports culture is relatively underdeveloped.
03. Brand advertising and sponsorship Still the No. 1 source of revenue for the gaming industry
As with the results of the first survey, the vast majority of respondents believe that brand advertising and sponsorship are expected to remain the largest source of revenue for the global esports market in 2020. The jump from 41% in the first survey to 51% in the second survey reflects the increasing participation of local and non-local brands. Game prop purchases and conversions surpassed the distribution of competition content copyrights to become the second largest source of estimated revenue.
04. M & A and integration of industry companies
Respondents expect that M & A transactions by industry companies in various categories will increase. The first place is the live broadcast platform (62%), the second is the event and event operating company (60%), the first Three are clubs in the franchise league (59%).
This shows that the size of the e-sports market is still growing, and industry insiders predict that as the industry matures, the e-sports industry around the world will further integrate regionally.
05. Esports development problems
68% of respondents believe that the phenomenon of “fake ball” (game manipulation) will pose a major threat to the legality and growth of e-sports. Of these, 47% cited the lack of a match fraud detection system as a key factor.
In addition, because e-sports has the characteristics of IP privatization, game manufacturers tend to be highly centralized, so game manufacturers’ control over their projects and their potential restrictions on industry development are also the issues that respondents are most concerned about Only 5% of the respondents think this issue is not important.
For 70% of the respondents, it is imperative to keep abreast of legal issues and comply with regulations first. Project IP licensing issues jumped from 50% in the first survey to 61% in the second survey, and concerns about contracts that did not provide adequate protection for professional players jumped from 43% to 54%.
06. United States, China, India will become the country and region with the most growth potential in e-sports
Respondents said that e-sports companies in the US (60%) and China (56%) are the most promising investment opportunities for e-sports in the next five years. But respondents are also bullish on the potential of developing countries, including India (32%), Southeast Asia (24%), and South America (22%).
About Filida Law Firm
Foley & Lardner LLP is an international law firm founded in the United States in 1842. According to data from the American Lawyer Magazine, the company ranked 39th in the 2011 AmLaw 100 US law firm, with a total revenue of $ 633 million in 2010.
About TEO
TEO (The Esports Observer) is the world’s leading e-sports business news and analysis media.
As with the results of the first survey, the vast majority of respondents believe that brand advertising and sponsorship are expected to remain the largest source of revenue for the global esports market in 2020. The jump from 41% in the first survey to 51% in the second survey reflects the increasing participation of local and non-local brands. Game prop purchases and conversions surpassed the distribution of competition content copyrights to become the second largest source of estimated revenue.
04. M & A and integration of industry companies
Respondents expect that M & A transactions by industry companies in various categories will increase. The first place is the live broadcast platform (62%), the second is the event and event operating company (60%), the first Three are clubs in the franchise league (59%).
This shows that the size of the e-sports market is still growing, and industry insiders predict that as the industry matures, the e-sports industry around the world will further integrate regionally.
05. Esports development problems
68% of respondents believe that the phenomenon of “fake ball” (game manipulation) will pose a major threat to the legality and growth of e-sports. Of these, 47% cited the lack of a match fraud detection system as a key factor.
In addition, because e-sports has the characteristics of IP privatization, game manufacturers tend to be highly centralized, so game manufacturers’ control over their projects and their potential restrictions on industry development are also the issues that respondents are most concerned about Only 5% of the respondents think this issue is not important.
For 70% of the respondents, it is imperative to keep abreast of legal issues and comply with regulations first. Project IP licensing issues jumped from 50% in the first survey to 61% in the second survey, and concerns about contracts that did not provide adequate protection for professional players jumped from 43% to 54%.
06. United States, China, India will become the country and region with the most growth potential in e-sports
Respondents said that e-sports companies in the US (60%) and China (56%) are the most promising investment opportunities for e-sports in the next five years. But respondents are also bullish on the potential of developing countries, including India (32%), Southeast Asia (24%), and South America (22%).
About Filida Law Firm
Foley & Lardner LLP is an international law firm founded in the United States in 1842. According to data from the American Lawyer Magazine, the company ranked 39th in the 2011 AmLaw 100 US law firm, with a total revenue of $ 633 million in 2010.
About TEO
TEO (The Esports Observer) is the world’s leading e-sports business news and analysis media.
68% of respondents believe that the phenomenon of “fake ball” (game manipulation) will pose a major threat to the legality and growth of e-sports. Of these, 47% cited the lack of a match fraud detection system as a key factor.
In addition, because e-sports has the characteristics of IP privatization, game manufacturers tend to be highly centralized, so game manufacturers’ control over their projects and their potential restrictions on industry development are also the issues that respondents are most concerned about Only 5% of the respondents think this issue is not important.
For 70% of the respondents, it is imperative to keep abreast of legal issues and comply with regulations first. Project IP licensing issues jumped from 50% in the first survey to 61% in the second survey, and concerns about contracts that did not provide adequate protection for professional players jumped from 43% to 54%.
06. United States, China, India will become the country and region with the most growth potential in e-sports
Respondents said that e-sports companies in the US (60%) and China (56%) are the most promising investment opportunities for e-sports in the next five years. But respondents are also bullish on the potential of developing countries, including India (32%), Southeast Asia (24%), and South America (22%).
About Filida Law Firm
Foley & Lardner LLP is an international law firm founded in the United States in 1842. According to data from the American Lawyer Magazine, the company ranked 39th in the 2011 AmLaw 100 US law firm, with a total revenue of $ 633 million in 2010.
About TEO
TEO (The Esports Observer) is the world’s leading e-sports business news and analysis media.