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Newzoo & Esports NEWZOO & ESPORTS BAR 5 12 15 Brazil is in the world in terms of Esports Enthusiasts © copyright Newzoo 2018 3 FOREWORD The passion that Brazil is renowned for in the sporting world is clearly visible in its thriving esports BRAZIL: KEY STATS scene. It boasts a huge esports audience, with fans known for their dedication to their games and teams. In fact, Brazil has the third-most Esports Enthusiasts in the world with 7.6 million Brazilians watching professional content more than once per month. POPULATION 210.9M On top of that, Brazil has given rise to many globally successful teams and strong local influencers. Many top-tier international teams have highly skilled Brazilian players in their roster, GAMERS 75.7M especially in Counter-Strike: Global Offensive. Local heroes such as Gabriel "FalleN" Toledo have hundreds of thousands of followers on social media and Brazilian broadcasters are racking up GAME REVENUES $1.5BN millions of viewing hours on Twitch. This whitepaper, brought to you by the Esports Bar and Newzoo, offers insights into the thriving ANNUAL SPEND/PAYER $37.22 esports scene in Brazil, including a detailed overview of the esports audience, key players in the industry, most popular esports content, and top events. ESPORTS ENTHUSIASTS 7.6M NEXT EDITION: Jurre Pannekeet September 24th-26th Senior Market Analyst Miami © copyright Newzoo 2018 4 ESPORTS AUDIENCE GROWTH PER TYPE | 2016-2021 OCCASIONAL VIEWERS TOTAL AUDIENCE ESPORTS ENTHUSIASTS +16.0% CAGR 2017-2021 of the online population is an Esports Enthusiast, lower than in China (7.9%) and the U.S. (7.7%). This means there are 7.6 TOTAL million Brazilian Esports Enthusiasts in 2018. AUDIENCE TOTAL +18.6% Esports awareness is also lower, at 47% of the online AUDIENCE 15.3M +8.5% YoY population. This leaves plenty of room for the audience to grow as esports becomes more mainstream, IT infrastructure YoY improves, and new titles gain popularity. By 2020, there will be almost 30 million Brazilians watching esports in some capacity. 10.7M 8.8M 12.6M 7.6M 6.6M 2017 2018 2021 © copyright Newzoo 2018 Source: 2018 Global Esports Market Report 5 OVERLAP BETWEEN SOCCER FANS AND ENTHUSIASTIC ESPORTS VIEWERS | BRAZIL | 2018 ALL SOCCER FANS ESPORTS & SOCCER FANS ESPORTS ONLY FANS ALL FREQUENT BRAZILIAN BRAZILIAN ENTHUSIASTIC BRAZILIAN ENTHUSIASTIC ESPORTS SOCCER FANS ESPORTS VIEWERS* THAT VIEWERS* THAT DO WATCH SOCCER WATCH SOCCER *Enthusiastic Esports Viewers defined by viewing 12% 0% professional esports at least 15% once a month. 24% 43% 25% Aged 10-20 Aged 10-20 10-20 21-35 36-50 51-65 43% 39% © copyright Newzoo 2018 Source: 2018 Games Consumer Insights | Based on the online population aged 10-65 6 POPULARITY OF PROFESSIONAL GAMING DRIVES TRADITIONAL SPORTS CLUBS TO ENTER ESPORTS FLAMENGO RONALDO TEAMS: LEAGUE OF LEGENDS TEAMS: FIFA, LEAGUE OF LEGENDS, ARENA OF VALOR FOUNDED: 2017 FOUNDED: 2001 CLUB’S MAIN SPORT: SOCCER INVESTOR’S MAIN SPORT: SOCCER Responding to the growing interest in esports in Brazil, historic sports The prominent Brazilian soccer player Ronaldo invested in CNB e- club Flamengo launched its esport division in 2017. Flamengo Sports Club, alongside poker players André Akkari and Igor Trafane. announced a League of Legends roster and a dedicated training The team, founded in 2001, currently competes in FIFA, League of facility, with plans to expand to other games. Legends, and Arena of Valor. © copyright Newzoo 2018 7 A PROFILE OF OCCASIONAL VIEWERS AND ENTHUSIASTIC VIEWERS IN BRAZIL OCCASIONAL VIEWERS BRAZILIAN ESPORTS AUDIENCE ENTHUSIASTIC VIEWERS WATCH ESPORTS < ONCE/MONTH IN 2018, SPLIT PER TYPE WATCH ESPORTS > ONCE/MONTH consider themselves core are aged between 10 and 25 gamers vs. 55% of enthusiastic viewers vs. 40% of occasional viewers 59% are women vs. 38% of own a gaming-specific 41% enthusiastic viewers headset vs. 53% of occasional viewers actively watch and/or follow use Instagram vs. soccer vs. 78% of enthusiastic viewers 68% of occasional viewers have a current subscription have a very positive brand OCCASIONAL ENTHUSIASTIC to Spotify vs. 47% of VIEWERS VIEWERS attitude of Coca Cola vs. 36% of enthusiastic viewers occasional viewers © copyright Newzoo 2018 Source: 2018 Games Consumer Insights | Based on the online population aged 10-65 8 Total prize money for the Brazilian team since it was founded in 2015 © copyright Newzoo 2018 9 ESPORTS SPONSORSHIPS DEALS ACTIVE IN 2018 IN BRAZIL In October 2017, Vivo and Keyd Stars renewed their sponsorship agreement for another two years, leading to a prominent rebranding of the team’s name to Vivo Keyd. The deal covers four teams, including the addition of Clash Royale players to the Vivo Keyd roster and a women’s CS:GO team. The sponsorship is one of Vivo’s esports pillars for 2018, along with the creation of Vivo Games4U, a new games and esports content app, and Game Changers, a sequel to the documentary series focusing on the Brazilian gaming scene. © copyright Newzoo 2018 10 LATIN AMERICAN ESPORTS REVENUES | 2015, 2016, 2017, 2020 TOTAL REVENUES TOTAL (MEDIA RIGHTS, ADVERTISING, SPONSORSHIP, MERCHANDISE & REVENUES TICKETS, GAME PUBLISHER FEES) +23.2% BRAND INVESTMENT REVENUES CAGR (MEDIA RIGHTS, ADVERTISING, SPONSORSHIP) 2017-2021 of revenues in LATAM come from advertising, making this the largest revenue stream. This is different from North America $55.6 and Western Europe. where sponsorship brings in the most MILLION money. TOTAL REVENUES As the Latin American market develops and Brazilian teams TOTAL $40.2 +28.6% and events establish themselves, more sponsors will enter the REVENUES YoY MILLION +87.9% market and drive sponsorship revenues to become biggest revenue stream in 2019. Revenue per fan remains relatively low YoY $31.0 at $2.0 per year. MILLION $24.1 MILLION $21.2 MILLION REVENUES REVENUES $16.2 PER FAN PER FAN MILLION PER FAN PER FAN $15.8 $2.0 2018 2018 2017 2018 2021 $345M $31M TOTAL REVENUES TOTAL REVENUES © copyright Newzoo 2018 Source: 2018 Global Esports Market Report 11 people attended Riot’s 2017 Mid-Season Invitational in Sao Paulo © copyright Newzoo 2018 12 IN CBLOL 2018 SUMMER PLAY OFFS AND ESL ONE: BELO HORIZONTE CBLOL 2018 SUMMER PLAYOFFS ESL ONE: BELO HORIZONTE GAME: LEAGUE OF LEGENDS GAME: CS:GO PRIZE POOL: $59,100 PRIZE POOL: $200,000 ORGANIZER: RIOT GAMES ORGANIZER: ESL Introduced in 2015, the CBLOL league lets the 10 best ESL One: Belo Horizonte is the first ESL One event organized Brazilian League of Legends teams compete for the title of in Latin America. The event featured CS:GO, one of the most national League of Legends champion. The league has two popular games in Brazil. The eight best CS:GO teams seasons per year where the top performing teams qualify for competed for the $200,000 prize. The event generated LoL’s international tournaments. In 2018, the spring playoffs Attendees at the more than a million viewership hours. American team FaZe Attendees at the were in Sao Paulo and generated close to a million viewership CBLoL Studio in Clan was crowned in front of the 15,000 fans who attended Mineirinho Sao Paulo Stadium in Belo hours. The winners, KaBuM! e-Sports, brought home $20,000 the event at Mineirinho Arena in Belo Horizonte. Horizonte out of a total prize pool of $59,100. © copyright Newzoo 2018 13 LOCAL FAN-FAVORITE PLAYERS’ SOCIAL MEDIA POPULARITY | PRIZE MONEY EARNED AND PRO PLAYERS Gabriel "FalleN" Toledo Epitacio "TACO" Pessoa Felipe "brTT" Gonçalves Leo "ziG" Duarte $781K $770K $41K $27K TOTAL PRIZE MONEY TOTAL PRIZE MONEY TOTAL PRIZE MONEY TOTAL PRIZE MONEY EARNED AT EVENTS EARNED AT EVENTS EARNED AT EVENTS EARNED AT EVENTS GAME TEAM GAME TEAM GAME TEAM GAME TEAM 850K 497K 371K 197K 767K 670K 157K 247K FOLLOWERS FOLLOWERS FOLLOWERS FOLLOWERS FOLLOWERS FOLLOWERS FOLLOWERS FOLLOWERS Country earnings and Pro-players according to Esportsearnings.com © copyright Newzoo 2018 14 of the online population in Brazil watches game- related video content © copyright Newzoo 2018 15 TYPES OF VIDEO GAME CONTENT WATCHED | SPLIT PER COUNTRY IN 2017 ARGENTINA MEXICO BRAZIL of people who watch video game content in Brazil watch 71% esports content. This is much higher than in Mexico (19%) and 66% 61% Argentina (22%). Other types of content are noticeably less popular in Brazil. Only 17% of Brazilian’s who watch video game content watch let’s plays or walkthroughs, compared to more than 30% of 33% those in Argentina and Mexico. 29% 31% 22% 19% 17% ESPORTS CONTENT LET'S PLAYS OR TIPS AND TRICKS FOR GAMES WALKTHROUGHS © copyright Newzoo 2018 Source: 2017 Games Consumer Insights | Base: Online population aged 10-65 who watch video game content 16 SHARE OF VIEWERS THAT WATCHES ESPORTS CONTENT PER TITLE VS. SHARE OF VIEWERS ONLY WATCH ESPORTS CONTENT* VIEWERS ONLY** PER TITLE PER TITLE LEAGUE OF LEGENDS 53% 18% CS:GO 46% 18% CLASH ROYALE 40% 12% DOTA 2 25% 19% 22% OVERWATCH 15% *Base: Enthusiastic Esports Viewers ** The share of people that watches esports content of a title but does not play that title © copyright Newzoo 2018 Source: 2018 Esports Consumer Insights 17 TOP STREAMERS WHO SPEAK PORTUGUESE ON STREAM | TWITCH | JANUARY-JUNE 2018 FOLLOWERS ON TWTCH RANK STREAMER HOURS WATCHED TOP GAME 1 YoDa 14.0M League of Legends 1.1M 2 alanzoka 11.2M Fortnite TOP GAME 3 jukes 7.3M League of Legends YoDa 4 SkipNhO 6.3M PUBG 5 jovirone 4.9M League of Legends 6 Rh3D4rkness 3.1M PUBG FOLLOWERS ON TWTCH 7 gratis150ml 3.0M League of Legends 1.0M 8 yeTz 2.8M League of Legends TOP GAME 9 sheviiioficial 2.6M PUBG alanzoka 10 pimpimentalol 2.3M League of Legends © copyright
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