These days eSports tournaments are becoming more and more common and are widely recognized along with classic sports like football, tennis, or hockey. Also, the International Olympic Committee currently considers including some eSports championships as an official medal event at the 2024 Olympics. At the same time, dozens of international tournaments in such disciplines as Dota 2, StarCraft II, Overwatch, or Call of Duty are held on an annual basis and viewed by multimillion audiences live.
Newzoo, a service collecting international gaming data, claims that eSports will generate global revenue of $1,8 billion by 2022. Therefore, any investments in the sphere become more and more lucrative for business as eSport tournaments get millions of views and generate enormous revenue, which is accelerating every year.
According to the CTO of NuxGame, a B2B software developer company: “...eSports market is the most promising sports market right now, whether you are eager to recognize it as real sports or not. In any way, the voice of the audience is clear, and they definitely cry for more... ”.
How do eSports generate revenue for the business?
According to Newzoo, the global audience of eSports in 2021 was 728.8 million viewers. It is 10% more than a live-stream audience of 2020. Currently, the industry is booming, and even according to the most careful predictions, the rapid growth will not cease in the following decade, making eSports one of the most profitable spheres in the entertainment industry.
More than 75% of income in eSports comes from media rights and partnership deals. Since the industry has created such a vast audience, it is easy to generate income through advertisements and paid broadcasts. The buzz around the biggest international eSports tournaments like The International, Fortnite World Cup or Intel Extreme Masters can be truly colossal. Thereafter, the biggest international brands always try to make sponsorship deals with the best teams and players.
Top games of 2021
If you want to invest in the industry, it is important to understand the latest tendencies and the public’s most beloved tournaments.
From the very beginning, it is important to figure out which games are at the top of the list.
- - Defense of the Ancients 2 (Dota 2)
- - Counter-Strike: Global Offensive (CS: GO)
- - StarCraft II (SC2)
- - League of Legends (LOL)
- - Call of Duty (COD)
- - Fortnite
- - Tekken
- - Tom Clancy’s Rainbow Six Siege
- - FIFA
- - Dragon Ball FighterZ
- - PlayerUnknown's Battlegrounds (PUBG)
- - Apex Legends
- - Mortal Kombat
- - Overwatch
- - Hearthstone
- - Valorant
- - Rocket League
- - Super Smash Bros. Ultimate
As you probably understand, most of those games have immense fan bases and there are a number of teams from all over the world who are doing their best to make it to the international championship finals.
How to invest in eSports
There are a number of ways how you can invest in the eSports market and many of them are promising since the industry is booming these days. So let us have a closer look at some of the easiest ways of how you can capitalize your knowledge of eSports or just make a perspective investment as a forward-looking entrepreneur.
Investing in eSports stocks is one of the most affordable ways to raise some money. As you understand, top eSports teams may have a high value that may reach hundreds of millions of US dollars. In this case, the team may create a personal stock market in order to get additional revenue. In case if you have a deep knowledge of the industry, you may earn by predicting the stock market fluctuation and generate revenue just like any other smart trader by selling and buying the right stocks at the right time.
If you understand the industry from the inside and you can swear that you are a good team manager, you can try investing in one of the teams. In case if your team succeeds and is noticed, it will be possible to strike a deal with the first investors. It is one of the easiest ways to earn money in eSports. Well, at least if you already have a powerful team of players.
Organization of tournaments
As you can understand, eSports tournaments can attract millions of viewers from all over the world. Many modern brands will not leave such a great opportunity behind if they can use it for the promotion of their product. This kind of investment most likely requires significant start-up capital and some extraordinary organizational skills. However, if everything is done right, it will be hard to fail once you have everything under control.
With an annual revenue gross of more than 15% and an ever-increasing audience, eSports is probably the most lucrative sphere in entertainment you can think about now. Being just one step from recognition by International Olympic Committee, eSports are frequently outclassing many traditional sports disciplines. Thus, eSports can be easily called one of the most rapidly growing spheres of modern times and can be ignored by forward-looking investors.