THIS REPORT IS BROUGHT TO YOU BY ESPORTS BAR AN OVERVIEW OF ESPORTS IN EUROPE FEATURING AN IN-DEPTH LOOK AT FOUR OF EUROPE’S MOST VIBRANT ESPORTS ECOSYSTEMS SWEDEN POLAND SPAIN GERMANY DECEMBER 2017 TABLE OF CONTENTS 1. Foreword 3 2. Key Facts About Europe 4 3. European Market Trends 6 4. Local Impact 10 5. Biggest Events 15 6. Using Consumer Insights 18 FOREWORD A NEW PHASE FOR ESPORTS COMMENCES Esports is entering a new phase toward becoming a mature ESPORTS ENTERING A CRUCIAL PHASE TOWARDS MATURITY market. The coming two years will be crucial in how fast it grows into a multi-billion-dollar business. The key determining factors are the success of local leagues and the franchising approach, the implementation of regulations, the arrival of new game formats and competition, the uptake of content rights sales, team profitability, and the impact of industry convergence involving traditional media, entertainment, telecom, and sports companies. Depending on how these factors play out in the coming year or two, esports’ growth could accelerate and reach $2.4 billion in 2020 in an optimistic scenario, almost $1 billion higher than the base scenario of $1.5 billion. Europe has been one of the most important regions in the development of the esports industry. Some of the first organizations that made esports popular, especially in the West, originate from Europe. Most notable is ESL, arguably the world’s largest esports organization, which has its roots in Germany. The company has helped build and shape esports from small community events to record-breaking events, including the Intel Extreme Masters in Katowice and ESL One in Cologne. And even now, Europe is a key region for the esports industry. It accounts Jurre Pannekeet for almost one-third of all global esports revenues and is host to Senior Market Analyst more than 70 million esports viewers. 3 © copyright Newzoo 2017 FACTS ON GAMING AND ESPORTS IN EUROPE GAME REVENUES, ESPORTS AUDIENCE, AND MEDIA RIGHTS REVENUE GROWTH EUROPEAN CONSUMERS THE ESPORTS MEDIA RIGHTS WILL GENERATE AUDIENCE WILL TOTAL REVENUES WILL GROW $22BN 77M +500% IN GAME SOFTWARE ACROSS ALL OF FROM 2016 TO 2020 IN REVENUES IN 2017 EUROPE THIS YEAR EUROPE ALONE 4 © copyright Newzoo 2017 KEY FACTS ON EUROPE AND CHOOSING THE FOUR KEY COUNTRIES FOCUS COUNTRIES WITH A VIBRANT LOCAL ESPORTS ECOSYSTEM Europe is a very different region AND LONG-TERM LEGACY IN ESPORTS from other large markets such as WESTERN EUROPE NORTHERN EUROPE North America or China, as it GERMANY SWEDEN ONLINE POPULATION ONLINE POPULATION represents more countries and 240.5M 30.6M cultures than these two regions. It is important to understand the ESPORTS ENTHUSIASTS ESPORTS ENTHUSIASTS implications of culture on favorite 13.1M 1.6M games, teams, and players if you 3.4M 0.5M ESPORTS FANS want to engage with the European ESPORTS FANS esports fan. This report gives you 2,317 1,836 an overview of the current PRO PLAYERS PRO PLAYERS European esports market, its local favorites, biggest events, and sponsors involved. SOUTHERN EUROPE EASTERN EUROPE POLAND This report features four of the SPAIN ONLINE POPULATION ONLINE POPULATION most vibrant local esports 98.7M 232.3M ecosystems, for a large part because of their long history in ESPORTS ENTHUSIASTS ESPORTS ENTHUSIASTS esports that is directly related to a 8.4M 10.9M strong PC gaming community. 4.1M 2.8M ESPORTS FANS ESPORTS FANS 687 1,086 PRO PLAYERS PRO PLAYERS 5 © copyright Newzoo 2017 IN 2017, EUROPE ACCOUNTS FOR 32% OF THE GLOBAL ESPORTS ECONOMY REVENUES EUROPEAN ESPORTS AUDIENCE EUROPE | FOR 2015, 2016, 2017, 2020 | Q3 2017 OCCASIONAL VIEWERS TOTAL AUDIENCE ESPORTS ENTHUSIASTS +13.1% CAGR 2015-2020 TOTAL Europe will AUDIENCE TOTAL 60.3 account for AUDIENCE +14.4% MILLION +18.4% YoY YoY 42.5 20% MILLION 36.5 of the global MILLION 45.0 31.6 MILLION esports audience MILLION 34.4 30.7 MILLION in 2017 25.2 MILLION MILLION ©2017 Newzoo 2015 2016 2017 2020 ©Newzoo | 2017 Global Esports Market Report 7 © copyright Newzoo 2017 EUROPEAN ESPORTS ECONOMY Europe EUROPE | FOR 2015, 2016, 2017, 2020 | Q3 2017 TOTAL REVENUES will generate +32.3% TOTAL REVENUES CAGR (MEDIA RIGHTS, ADVERTISING, SPONSORSHIP, 2015-2020 MERCHANDISE & TICKETS, GAME PUBLISHER FEES) $209M BRAND INVESTMENT REVENUES $403 in 2017, or 32% of global MILLION (MEDIA RIGHTS, ADVERTISING, SPONSORSHIP) esports revenues TOTAL $319 REVENUES MILLION 5% TOTAL +27.3% REVENUES YoY 32% +65.1% 27% YoY $209 MILLION $660M $165 MILLION $146 2017 MILLION $100 MILLION $108 MILLION $65 ©2017 Newzoo MILLION 36% 2015 2016 2017 2020 EU NAM ASIA REST OF WORLD ©Newzoo | 2017 Global Esports Market Report 8 © copyright Newzoo 2017 SPORTS TEAMS EMBRACING ESPORTS EUROPEAN SPORTS ORGANIZATIONS ENTERING ESPORTS WITH PLAYERS AND TEAMS INVOLVED TEAMS The involvement of sports clubs and personalities, leagues, and agencies will significantly accelerate the development of the global esports industry and help local esports scenes grow. Traditional sports clubs and leagues bring with them an established local fan base, along with a well-known and respected brand. By leveraging this, they can ensure their esports initiatives are instantly perceived as top-level competitions. Agencies bring their vast experience in sports marketing to the space, telling stories around the teams and players that suit their client base of sponsor brands. Furthermore, the inclusion of well-known sports teams gives a boost to the awareness and acceptance of esports as a legitimate form of mainstream entertainment. It will also give a boost to esports activities around sports games such as Madden and FIFA, as a significant share of esports initiatives are built around these franchises. 9 © copyright Newzoo 2017 OF THE NEW MAJOR ESPORTS SPONSORS, 69% WERE NON-ENDEMIC BRANDS NON-ENDEMIC BRANDS DRIVE GROWTH NEW NON-ENDEMIC SPONSORSHIPS IN 2017 | EUROPE AND GLOBAL EUROPE REST OF WORLD EUROPEAN BETTING COMPANIES 11 © copyright Newzoo 2017 LOCAL TIES DRIVE FAN ENGAGEMENT POPULAR LOCAL TEAMS PER COUNTRY | MAIN SPONSOR PER TEAM SWEDEN POLAND SPAIN GERMANY MAIN SPONSOR MAIN SPONSOR MAIN SPONSOR MAIN SPONSOR Ninjas in Pyjamas, or NiP, is Polish organization Virtus Pro is G2 Esports is the only team to Founded in 1997, SK Gaming Sweden’s favorite team. Its the longest standing 5-man roster operate both the LCS and the is one of the oldest esports teams mostly consist of in CS:GO to date, called the LVP. Through its founder Carlos organization to date, still Swedish players, including its ‘’Golden Five’’. Its players have a ‘Ocelote’ Rodriguez, it has deep competing at the highest level popular CS:GO team. very large following in Poland. Spanish roots. worldwide. 12 © copyright Newzoo 2017 EUROPE AMONG THE BEST IN THE WORLD TOP 10 TEAMS OR PLAYERS | CS:GO, LOL, AND HEARTHSTONE | NOVEMBER 30TH 2017 RANK TEAM REGION RANK TEAM REGION RANK PLAYER REGION SAMSUNG SOUTH NORTH 1 SK GAMING EUROPE 1 1 MUZZY GALAXY KOREA AMERICA SOUTH 2 FAZE CLAN EUROPE 2 SKT 2 PAVEL EUROPE KOREA NORTH 3 CLOUD 9 3 RNG CHINA 3 STANCIFKA EUROPE AMERICA 4 ATRALIS EUROPE 4 TEAM WE CHINA 4 ORANGE EUROPE SOUTH 5 NIP EUROPE 5 LONGZHU 5 HOEJ EUROPE KOREA NORTH 6 NORTH EUROPE 6 EDG CHINA 6 DOG AMERICA NORTH 7 FNATIC EUROPE 7 INVICTUS CHINA 7 ZALAE AMERICA NORTH NORTH 8 MOUSESPORTS EUROPE 8 CLOUD 9 8 DRJIKININKI AMERICA AMERICA NORTH 9 OPTIC GAMING 9 G2 ESPORTS EUROPE 9 RDU EUROPE AMERICA LATIN 10 G2 ESPORTS EUROPE 10 LYON GAMING 10 THIJSNL EUROPE AMERICA 13 © copyright Newzoo 2017 THE IMPACT OF LOCAL HEROES LOCAL FAN-FAVORITE PLAYERS’ SOCIAL MEDIA POPULARITY | PRIZE MONEY EARNED AND PRO PLAYERS SWEDEN POLAND SPAIN GERMANY $22.3M 1,836 $6.7M 1,086 $2.2M 689 $13.0M 2,317 PRIZE MONEY REGISTERED PRO PRIZE MONEY REGISTERED PRO PRIZE MONEY REGISTERED PRO PRIZE MONEY REGISTERED PRO 2017 YTD EARNED BY PLAYERS 2017 YTD EARNED BY PLAYERS 2017 YTD EARNED BY PLAYERS 2017 YTD EARNED BY PLAYERS SWEDISH PRO PLAYERS POLISH PRO PLAYERS SPANISH PRO PLAYERS GERMAN PRO PLAYERS GAME TEAM GAME TEAM GAME TEAM GAME TEAM Rekkles Pasha Mithy KuroKy 378K 397K 273K 833K 101K 5K 197K 69K FOLLOWERS FOLLOWERS FOLLOWERS FOLLOWERS FOLLOWERS FOLLOWERS FOLLOWERS FOLLOWERS 14 © copyright Newzoo 2017 Country earnings and Pro-players according to Esportsearnings.com OF ALL EUROPEAN LOL, CS:GO, OR DOTA2 ESPORTS VIEWERS, 26% DO NOT PLAY ANY OF THESE GAMES THEMSELVES BIGGEST EVENTS IN EUROPE TOP 10 EVENTS HELD IN EUROPE BY HOURS WATCHED ON TWITCH | 2017 HOURS PRIZE EVENT ORGANIZER MAIN GAME WATCHED ATTENDEES MONEY 2017 Kiev Major PGL Dota 2 23.3M 14,800 $3,000K SL i League StarSeries Season 3 SLTV, ImbaTV CS:GO 18.9M 3,700 $300K IEM Season XI – Katowice ESL CS:GO 14.5M 173,000 $760K 2017 EU LCS* Riot Games LoL 25.0M 91,800 $339K CS:GO is the most 2017 ESL One Cologne ESL CS:GO 11.2M 15,000 $250K represented main 2017 PGL Major Krakow PGL CS:GO 10.0M 34,500 $1,000K game in Europe’s 2017 DreamHack Masters Malmo Dreamhack CS:GO 8.6M 13,000 $250K biggest events Epicenter 2017 Epic Esport Event CS:GO 7.4M 7,000 $500K ESL One Hamburg ESL Dota 2 4.8M 20,000 $1,000K Dota Pit League Season 5 Dota Pit Dota 2 4.4M 11,000 $140K TOTAL 128M 384,000 $7,500K 16 © copyright Newzoo 2017 BIGGEST EVENTS BY COUNTRY IN 2017 BY VIEWERSHIP | FEATURING A KEY SPONSOR AND VIEWING/ATTENDANCE NUMBERS SWEDEN POLAND SPAIN GERMANY Dreamhack Winter 2017 IEM Katowice 2017 Dreamhack Valencia 2017 ESL One Cologne 2017 KEY SPONSOR KEY SPONSOR KEY SPONSOR KEY SPONSOR 2.3M 26K 14.5M 173K 3.0M 40K 11.2M 15K VIEWING HOURS ATTENDEES VIEWING HOURS ATTENDEES VIEWING HOURS ATTENDEES VIEWING HOURS ATTENDEES 17 © copyright Newzoo 2017 IN-DEPTH CONSUMER PROFILING TO MATCH YOUR TARGET GROUP AND OPPORTUNITIES IN ESPORTS 200+ VARIABLES Newzoo’s esports consumer insights allows you to profile your audience on 200+ variables, including demographics, media behavior, esports participation and viewership, favorite QUANTIFY franchises, spending habits, and brand attitude.