ESPORTS BAR KICK-OFF:
Peter Warman, CEO Newzoo Of a lot of things that were long on the horizon
ESPORTS IN BRAZIL: KEY FACTS, FIGURES & FACES UNDERSTANDING MEDIA RIGHTS IN ESPORTS
© Newzoo 2018 1. IT IS ALL ABOUT TIME AND MONEY When sports and gaming collide TIME © copyright Newzoo 2018 4 MONEY
© copyright Newzoo 2018 5 MONEY TIME
6 Sports versus Esports terminology
SPORTS VS GAMES
SPORTS FANS GAME ENTHUSIASTS Sporter: a person or thing that sports, as a SPORTERS GAMERS participant in a sport. SPORTS GAMING
PROFESSIONAL SPORTS PROFESSIONAL GAMING (“ESPORTS”)
AN ATHLETE AN ATHLETE (“PRO GAMER”)
A TEAM/CLUB A TEAM (PLAYING MULTIPLE GAMES)
A SPORT A GAME
LEAGUES/EVENTS/CHAMPIONSHIPS LEAGUES/EVENTS/CHAMPIONSHIPS
IRL GAME STREAMING MEDIA RIGHTS
NA STREAMERS
© Newzoo 2018 7 Sports versus Esports terminology
SPORTS VS GAMES 2.4Bn 2.4Bn 175M SPORTS FANS GAME ENTHUSIASTS ESPORTS ENTHUSIASTS ~$140Bn ~$140Bn PROFESSIONAL GAME REVENUES SPORTS REVENUES PLUS ESPORTS $40Bn $60Bn $138Bn $161M MEDIA RIGHTS CONSUMER REVS CONSUMER REVS MEDIA RIGHTS $16.70/yr/fan $25.00/yr/fan $57.50/yr/fan $0.92/yr/fan
THE IMMEDIATE THE IMMEDIATE OPPORTUNITY OPPORTUNITY applying gaming $78Bn applying sports business $2.9Bn consumer magic to sports magic to gaming
© Newzoo 2018 8 Top and mid-tier tournament content deals
Overwatch League ESL Pro League – CS:GO Rainbow Six: Siege Pro League The Mid-Season Invitational 2018 AB Groupe (French-speaking Facebook – exclusive. Twitch, YouTube Gaming, Facebook, Twitch, PandaTV, Zhanqi, YouTube regions), The Walt Disney Company and others – non-exclusive. Gaming, AfreecaTV, Huya, Douyu, (U.S.). Twitch – digital exclusive. Garena Live, and ESPN+ – non-exclusive.
Global Starcraft League HotS Global Championship Dreamhack Summer 2018 NA LCS AfreecaTV, Twitch, StarLadder, and Twitch – exclusive. Twitch – exclusive. ESPN – TV exclusive. Twitch, YouTube others – non-exclusive. Gaming, and others – non-exclusive.
ELEAGUE Major: Boston 2018 CS Summit 2 & 3 ESL One IEM Katowice Season XII TBS – TV exclusive. Twitch - exclusive. Facebook - exclusive. Twitch and Facebook – non-exclusive. Twitch – digital exclusive.
© Newzoo 2018 9 Gaming and sports alike
Huya acquires exclusive live streaming $230M rights for the Korean LoL championship Spent by Facebook on the streaming rights of the English Premier League in Thailand, Vietnam, Cambodia and Laos for three years.
$100M Invested by 21st Century in social streaming platform Caffeine.tv and will add NFL content
© Newzoo 2018 10 LET’S TALK
© copyright Newzoo 2018 2. CHINA SHOWS US A FUTURE Doing it differently from the start
12 © copyright Newzoo 2018 For many big Western brands
15% Of the world’s game revenues in 2017 were generated by Tencent: $18.1Bn of $121.7Bn
© Newzoo 2018 14 But about subscriptions, virtual items and “tipping” for experience and status
Game streaming generates $0.15 in gross consumer revenues, slightly higer than mobile gaming.
Top streamers on Huya and Douyu >90% generate between $150 and $750K in monthly gross revenue Of Huya’s forecasted revenues of $675M this year come directly from consumers. from consumers Streamer guilds are the norm in China. China Blue represents 627 streamers.
Sports and other non-gaming content represents 39% of consumer revenues and only 20% of hours streamed.
© Newzoo 2018 15 3. RETHINK WHO WE ENTERTAIN New community structures arise Underlying success of competitive gaming has pushed it to a professional level
SHARE OF TOP 1,000 GAMES PER LAYER (INDICATIVE) 11% PRO ESPORTS EVENTS ~1% 10 Of viewing hours on Youtube Gaming and Twitch this year are ONLINE PRO ESPORTS ~2% 20 generated by professional esports ~5% 50 leagues and events. 89% is AMATEUR ESPORTS EVENTS generated by streams ~10% 100 broadcasted by consumers / ONLINE AMATEUR ESPORTS influencers. VIEWING ~30% 300 SHARING
COMPETITIVE ~50% 500 GAME EXPERIENCE
Source: ©Newzoo | Global Esports Market Report © Newzoo 2018 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
© Newzoo 2018 18 Each segment has a different passion for games
NEWZOO’S GAME ENTHUSIAST SEGMENTATION WORK IN PROGRESS
Source: ©Newzoo | Global Consumer Insights © Newzoo 2018 19 4. THE BIGGEST BRANDS ARE MOVING IN After years or preparation
20 Allan Phang
© copyright Newzoo 2018 21 And all other tier one sports sponsors are ready to announce their move
© Newzoo 2018 22 Sports related esports leagues and events are considered by all as a first step
“ACCESSIBLE” “HARDCORE”
VIEWING HOURS TWITCH & YOUTUBE
1.8M
3.8M
4.0M
Source: ©Newzoo | Global Esports Market Report © Newzoo 2018 23 Evaluating the viewership of individual leages and events for sponsors and rights buyers
1
Week-on-week jump in viewing hours for Overwatch contender streaming because of Finals in NYC 1 2
2
Viewing hours for the four days of the Beyond the Summit 9 event in LA. 3 Large share of audience is from SEA.
3
Viewing hours for the official Overwatch Twitch channel broadcasting the first final of their League.
Source: ©Newzoo | Game Streaming Tracker © Newzoo 2018 24 5. THE ULTIMATE REAL- WORLD CHALLENGE As we put our great minds together
MONEY TIME
27 In-game currency and marketing mechanics transfer to the real world
MONEY TIME HARD CURRENCY SOFT CURRENCY
91% Of all game revenues in 2018 is generated through digitally, the vast majority using game or platform credits as an intermediate currency: $125Bn worldwide, $29Bn in NAM.
MONEY TIME
Source: ©Newzoo | Global Games Market Report © Newzoo 2018 28 In-game currency and marketing mechanics transfer to the real world
HARD CURRENCY SOFT CURRENCY SMART SOFT LINKS ▪ KEY MECHANICS ▪ NO PAY TO WIN ▪ NO FARMING 91% Of all game revenues in 2018 is generated through digitally, the vast majority using game or platform credits as an intermediate currency: $125Bn worldwide, $29Bn in NAM.
MONEY TIME
SOFT CURRENCY LOYALTY PROGRAMS Learnings from game mechanics “TIME” CURRENCY
BANKS AND CORPORATES BLOCKCHAIN HARD CURRENCY CASH/DIGITAL More power to the people “MONEY” CURRENCY
Source: ©Newzoo | Global Games Market Report © Newzoo 2018 29 MONEY TIME
30 ESPORTS BAR KICK-OFF:
Peter Warman, CEO Newzoo