Panel
The Business of eSports
- Esports revenue is expected to double over the next two years, with the market anticipated to reach a viewing tipping point while advertising revenue remains below its potential.
- Twitch aims to launch new tools within the current year to help game companies analyze viewer retention and esports spending impact, while maintaining North America as the largest region and seeing growth in East Asia and South America.
- The average Twitch viewer age is projected to remain around 28, a demographic considered difficult to replicate on traditional television, with viewer engagement on the platform expected to match two hours of daily TV attention.
- Television is predicted to eventually shift from traditional sports content to digital platforms as audience attention migrates, with Turner and IMG expected to broadcast an esports tournament at the end of the current month and Activision having already invested in an esports division led by an ex-ESPN executive.
- Future game development is expected to prioritize spectator features, while brands and sponsors are predicted to shift from buying media to actively sponsoring teams and leagues, with non-endemic brands like Coca-Cola increasingly adopting strategic, multi-brand activations.
- Regional live events are expected to increase in frequency beyond current limited studio audiences, and owning an esports team is projected to become highly lucrative within a few years as the ecosystem develops regulations, rules, and best practices similar to traditional sports.
- Immortals is expected to compete across multiple leagues and games such as CSGO, Dota, and Vainglory, distinct from traditional sports teams restricted to a single sport, with top-tier teams implementing player manager roles to enforce health and mental readiness standards.
- Esports infrastructure and quality standards observed in Asia are expected to permeate the North American ecosystem, while regular season matches in North America are not expected to frequently fill large arenas like Dodger Stadium for two to three years due to the sport's niche status there.
- The evolution of esports is predicted to occur faster in regions where it is already a top sport, and the NCAA is considered an inevitable future development, contingent on colleges seeing value in attracting top-tier students with higher disposable income.
- Collegiate structures are expected to evolve to resolve undefined scouting systems, yet the professional aspirational ladder will remain broad, allowing players to bypass high school or college directly, though the industry will need to address real injury concerns and gender representation.
- Merchandising is expected to become a major untapped revenue stream, and the next generation of professional players is anticipated to emerge globally without traditional training camps, turbocharging fan engagement.
- The future of broadcasting includes better discovery tools and interactive features allowing viewers to queue and play with broadcasters, with Twitch subscriptions aiming to provide broadcasters with a living wage, while failure in traditional TV esports broadcasts would simply necessitate a shift to a digital platform approach.