Gamers are being conditioned to spend money on content via in-game purchases and subscription models, and an increased offering in premium value above and beyond the current fan experience should increase the annual revenue per fan significantly.
Still, there is empirical proof that gaming fans are willing to pay for premium experiences.įor example, millennials and Gen Z gamers spend between $51-$53 per month, on average, for streaming channel subscriptions and donations. The ubiquity of free gaming video content and 24/7 access to streaming has thus far made monetization difficult on a global scale.
The average esports fan spends between $3-$5, compared to over $35-$85 per fan for traditional sports like basketball, football, and hockey. The fan is at the center of the gaming business but is largely ignored and undervalued in each sector. This growth comes on the heels of what’s expected to be a 15% CAGR in global audience size, adding value to each business component. Sponsorships and advertising currently make up nearly 60% of all esports revenue, and Goldman Sachs claims that by 2022, media rights will comprise 40% of all esports revenue. 4 Revenue Breakdown for 2018 CREDIT: Newzoo Global Esports Market Report 2019 3 Esports Revenue Growth for 2018 to 2021 and Fig.
