Esports continue to drive headlines around the world, as revenues and prize pools grow to new heights. According to Newzoo’s recently released 2019 Global Esports Market Report, esports revenues exceeded $860 million in 2018 and is expected to grow to $1.7 billion by 2022. Newzoo also reports that the total prize pool for esports matches exceeded $150 million in 2018.

Fortnite stole the show in 2018, earning $2.4 billion for the year—the highest annual revenue of any game in history. Fortnite is free to play, generating the majority of its revenue using the game as a service model. The 1.6 billion hours of Fortnite streaming represent a shift away from traditional TV and entertainment, and towards the next-generation entertainment ecosystem. Unsurprisingly, demographics play a huge role in this. Esports enthusiasts are, on average, around 30 years of age. These are younger consumers (adults with purchasing power) who have grown up online and playing video games. Large numbers of this demographic are turning away from traditional media channels in favor of online video game streaming.

Over Half of Global Game Revenues Come from Mobile

Source: Newzoo Global Esports Market Report 2019.

As these statistics indicate, video gaming and esports represent a fundamental paradigm shift in how people use entertainment and technology to interact with each other. Esports and online video game are a long-term disruptive force in the traditional media, entertainment, and technology industries.

About the Author:

John Patrick Lee serves as ETF Associate Product Manager at VanEck Associates Corporation.  He helps to support a number of different VanEck Vectors ETFs, including international bonds, international equity, industry and muni ETFs.  He holds a B.A. in English Literature from the College of William and Mary, and is a CFA charterholder.

The article above is an opinion of the author and does not necessarily reflect the opinion of MV Index Solutions or its affiliates.