9%
We see audiences, prize pools and monetization opportunities growing rapidly over the next five years.
2018E
Counter-Strike: Global Offensive
Amount of time users spend daily on the Chinese live-streaming platform Huya
Daytona 500
Click to Compare
2022E
276
eSPORTS REVENUE STREAMS 2017
NFL & ELECTRONIC ARTS SPORTS
As media rights and sponsorship continue to grow, along with the formalization of pro sports leagues, we expect total eSports monetization will reach
eSports keep fans engaged during the offseason. For developers, tournaments can further grow audiences, engagement, and monetization.
Like traditional sports, media rights will eventually become the largest source of eSports revenue, followed by sponsorships.
sponsorship
WHO'S WATCHING
Growing prize pools are a key factor in audience growth and player earnings are beginning to resemble other pro sports.
Asia’s online population dwarfs other regions by far
17%
Source: Goldman Sachs Global Investment Research
$869
Source: Goldman Sachs Global Investment Research, SuperData, NewZoo, eMarketer
BY 2022
Watch What Happens When…
a Goldman Sachs Analyst
plays with the pros.
WHERE THEY'RE WATCHING
$359
BILLION
7%
40%
$2,963
Year 1 / Fortnite Tournament Prize Pool
35%
2020E
The Masters
14%
The audience on YouTube & Twitch is larger than HBO, Netflix & ESPN combined
MONETIZATION ($ M)
eSPORTS JOINS
THE BIG LEAGUES
Sources: NewZoo, Goldman Sachs Global Investment Research
2022
eSPORTS MONTHLY AUDIENCE SIZE TODAY VS. WHERE IT'S HEADING
READ OUR REPORT ON eSPORTS
$23M
2018
LEAGUE OF LEGENDS
14%
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.
Landmark Media Rights Deals Taking Shape
eSPORTS REVENUE STREAMS 2017
MINUTES
22%
LoL content is now available on ESPN+, Twitch and YouTube
$1,592
PRIZE POOL ($ M)
Wimbledon
(Women’s / Men’s Singles)
225
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.
$256
League of Legends
SPORTS
Monthly income of Ninja, an online personality who live-streams gameplay
4%
JOINS THE BIG LEAGUES
advertising
$413
AUDIENCE (M)
Player Earnings are Surging
$3B
Our key estimates:
355
advertising
tickets
$307
Lucrative Monetization Opportunities Arising as a Result
Traditional Pro Sports are Joining In
Total number of minutes watched on Twitch in 2017, up 22% year-over-year
$18M
In Asia they’re watching via Douyu and Huya.
In the U.S. they’re tuning in via Twitch & YouTube.
$19M
THERE'S NO STOPPING eSPORTS
167
2021E
eSPORTS REVENUE STREAMS 2022
NBA & TWITCH
To date, there have been several landmark media rights deals, including:
A young, digital and global audience.
eSPORTS REVENUE STREAMS 2022
250
$2,173
$100M
Click to Compare
$1,184
Activision signed a 2-year $90M deal with Twitch to distribute Overwatch League in North America
…but we see media rights as the largest revenue opportunity in 2022.
79%
98
Source: eSportsearnings.com, Goldman Sachs Global Investment Research
eSPORTS
~$1M
media rights
$12M
$170
$16M
194
38%
Twitch will broadcast all NBA eSports matches. This league operates much like the NBA with player salaries, marketing and product licensing.
Advertising and sponsorship are the largest
sources of eSports revenue today…
Percentage of viewers under 35 years old
Source: Sports Business Daily, Goldman Sachs Global Investment Research
sponsorship
local
$11M
other
2019E
Source: Goldman Sachs Investment Research, NewZoo survey (2018 Global Esports Market Report)
167M
other
OVERWATCH
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.
Source: Goldman Sachs eSports Investment Research, NewZoo survey (2018 Global Esports Market Report)
STAY IN THE GAME
276M
2017 Dota 2 International
Prize Pool
Media rights