The esports industry has made over $1bn in revenue for the first time ever in 2020, with revenues up by 15.7% from 2019. This was largely due to advertisers and sponsors refocusing their efforts on esports due to the cancellation and postponement of traditional sports events during the COVID-19 pandemic. The future growth of the esports industry looks set to continue as it becomes a significant revenue source, with predictions that it will generate $1.8bn by 2022.
Esports Industry Rakes in $1 Billion in Revenue for the First Time in 2020
The Rise of Esports
The esports industry has been gaining traction over the past decade, with more and more people tuning in to watch professional gamers compete. The emergence of high-speed internet and streaming platforms like Twitch has made it possible for anyone to watch and participate in esports tournaments from anywhere in the world.
The Impact of COVID-19
The global pandemic has had a significant impact on the esports industry. With many traditional sports leagues shutting down, the demand for esports content skyrocketed. Tournaments that were once held in person moved online, attracting even more viewers than before. Advertisers and sponsors also shifted their focus to esports, as traditional sports events were canceled or postponed.
The Numbers
According to a report by Newzoo, the esports industry generated over $1 billion in revenue in 2020. This is the first time the industry has reached this milestone, and it represents a 15.7% increase from 2019. The majority of the revenue came from sponsorships and advertising, which accounted for $636 million. The remaining revenue came from media rights, game publisher fees, and merchandise and tickets sales.
The Future of Esports
The growth of the esports industry is expected to continue in the coming years, with Newzoo projecting that the industry will reach $1.8 billion by 2022. Many traditional sports teams and leagues have already started investing in esports, recognizing its potential as a major revenue source. As the esports industry continues to grow, it is likely that we will see more crossover between traditional sports and esports, as well as more opportunities for gamers to turn their passion into a lucrative career.
Conclusion
The esports industry has come a long way in a short amount of time, and its growth shows no signs of slowing down. With its massive global audience and potential for revenue, it is clear that esports is more than just a passing trend. As the industry continues to evolve and expand, it will be interesting to see how it shapes the future of sports, entertainment, and gaming.