NBA & TWITCH
22%
$2,173
Landmark Media Rights Deals Taking Shape
Source: Goldman Sachs eSports audience growth forecast
$1,184
17%
$170
With one of the fastest-growing fan bases in pro sports, a youthful global audience that’s already larger than Major League Baseball’s and top players who are quickly joining the ranks of millionaires—eSports have entered the mainstream.
The audience on YouTube & Twitch is larger than HBO, Netflix & ESPN combined
BY 2022
38M
276M
Source: Sports Business Daily, Goldman Sachs Global Investment Research
WHERE THEY'RE WATCHING
NBA
THERE'S NO STOPPING eSPORTS
$12M
2021E
Monthly income of Ninja, an online personality who live-streams gameplay on Twitch
As media rights and sponsorship continue to grow, along with the formalization of pro sports leagues, we expect total eSports monetization will reach
Traditional Pro Sports are Joining In
Twitch will broadcast all NBA eSports matches. This league operates much like the NBA with player salaries, marketing and product licensing.
$18M
LoL content is now available on ESPN+, Twitch and YouTube
250
$307
Source: Goldman Sachs Global Investment Research
194
124M
14%
2019E
167M
eSPORTS REVENUE STREAMS 2017
Amount of time users spend daily on the Chinese live-streaming platform Huya
9%
4%
35%
270M
14%
40%
BILLION
eSPORTS REVENUE STREAMS 2022
LEAGUE OF LEGENDS
Growing prize pools are a key factor in audience growth and player earnings are beginning to resemble other pro sports.
Third-party brands used in this presentation are the property of their respective owners and are not intended to imply an affiliation with or endorsement of or by GS or its products/services.
SPORTS
eSPORTS JOINS
THE BIG LEAGUES
7%
THE NBA FINALS
Like traditional sports, media rights will eventually become the largest source of eSports revenue, followed by sponsorships.
Source: Goldman Sachs Global Investment Research, NewZoo
167
MINUTES
2022
WHO'S WATCHING
Click to Compare
Year 1 / Fortnite Tournament Prize Pool
$16M
2018
Our key estimates:
eSPORTS RIVALING TRADITIONAL PRO SPORTS
$413
LEAGUE OF LEGENDS
NFL
$23M
sponsorship
11M
$19M
AUDIENCE (M)
$11M
Asia’s online population dwarfs other regions by far
Source: eSportsearnings.com, Goldman Sachs Global Investment Research
STAY IN THE GAME
JOINS THE BIG LEAGUES
Unlike traditional sports, most
eSports viewership is online.
Activision signed a 2-year $90M deal with Twitch to distribute Overwatch League in North America
2017 Dota 2 International
Prize Pool
eSports keep fans engaged during the offseason. For developers, tournaments can further grow audiences, engagement, and monetization.
2022E
We see audiences, prize pools and monetization opportunities growing rapidly over the next five years.
THE SUPER BOWL
League of Legends
In April 2017, the NFL announced that in partnership with Electronic Arts it planned to air exclusive broadcasts of the Electronic Arts Sports Madden NFL 18 Championship and the Madden NFL 18 Ultimate League on a number of Disney networks.
Daytona 500
225
2017 CHAMPIONSHIP VIEWERSHIP
58M
Media rights
$359
$3B
276
In Asia they’re watching via Douyu and Huya.
In the U.S. they’re tuning in via Twitch & YouTube.
$1,592
other
$256
355
MLB
To date, there have been several landmark media rights deals, including:
Advertising and sponsorship are the largest
sources of eSports revenue today…
Source: Goldman Sachs Global Investment Research, SuperData, NewZoo, eMarketer
NFL & ELECTRONIC ARTS SPORTS
advertising
$2,963
eSPORTS MONTHLY AUDIENCE SIZE TODAY VS. WHERE IT'S HEADING
79%
eSPORTS
MONETIZATION ($ M)
ESPORTS
32M
114M
Player Earnings are Surging
2020E
BY 2022
Wimbledon
(Women’s / Men’s Singles)
~$1M
167M
Watch What Happens When…
a Goldman Sachs Analyst
plays with the pros.
eSPORTS VIEWERSHIP IS ALREADY OUTPACING SOME MAJOR LEAGUE SPORT AUDIENCES
Click to Compare
2018E
Lucrative Monetization Opportunities Arising as a Result
A young, digital and global audience.
276M
$869
THE WORLD SERIES
Percentage of viewers under 35 years old
PRIZE POOL ($ M)
READ OUR REPORT ON eSPORTS
The Masters
NHL
Counter-Strike: Global Offensive
Source: Nielsen, Rentrak, CBS, ESPN, Goldman Sachs Global Investment Research
Sources: NewZoo, Goldman Sachs Global Investment Research
…but we see media rights as the largest revenue opportunity in 2022.
sponsorship
231M
advertising
local
eSPORTS REVENUE STREAMS 2022
98
tickets
media rights
65M
other
38%
THE STANLEY CUP FINALS
eSPORTS REVENUE STREAMS 2017
Total number of minutes watched on Twitch in 2017, up 22% year-over-year
OVERWATCH
$100M
