Newzoo Highlights Esports Forecast in Wake of the COVID-19 Pandemic
Several reports related to the sports industry have revealed about the bright future of esports and video game contestants highlighted the great opportunities for the sector.
According to the latest market research and esports analytics, Newzoo published a report highlighting that the esports market will soon generate over $973.9 million in this year and $1194.8 million in next year.
Moreover, the sinking prediction has nothing to do with insufficient demand for esports as its fans are not going to be reduced. It also concluded that adjustment was not because of the downfall in the content of esports, but is occurring due to delay in physical sports events.
Physical sports events were a boon for the industry revenue but due to the COVID-19 pandemic, it has generated some challenges and uncertainties for esports. As per the impact of COVID-19 outbreak, the revenue of these two years is almost similar in the figure.
Besides, several international events have moved towards different approaches. All sorts of online sports events have replaced offline events and as a result, there is a huge decline in international tournaments.
A Move towards Digital Approach
According to Newzoo, esports must concentrate more on regional events in order to get successfully digital. It states that it is difficult to coordinate among several parties in multiple time zones. Moreover, other factors such as internet connectivity may impede the integrity of the event
The report concluded that tickets and merchandise are significantly influenced while moving towards digital, but sponsorships and media rights seem to be more dominating and resilient. This recent report published by Newzoo reveals about the esports ticket sales and merchandise. It may generate revenues over $76.2 million this year as compared to $121.7 million it generated in preceding months.
Sponsorships and media rights are predicted to be $584.1 million and $163.3 million respectively in 2020. From the prediction, it gives a clear view that sponsors are less likely interested in digital events.
Despite the decline, Marketing Dive publishes that esports is using the opportunity in this crisis relatively well. In April, BMW agreed to sponsor the world’s five eminent esports teams in order to get expansion in this sector. Recently, Verizon signed a three years contract to provide a 5G network across Legends Championship Series. It also covered that all established partnerships with leading players and creators are on a rise.
Rise in Prominence
According to the World Economic Forum, the esports industry may be rising in prominence as an outcome of COVID-19. All the major sports tournaments across the world have shifted towards this sector to look for new ways to attract more fans.
Various esports events get aired on live TV as broadcasters search to replace the hours of scheduled events that were about to take place during the COVID-19 pandemic. Moreover, according to the organization in Switzerland, the esports sector has grown rapidly due to cost-effective marketing.
Growth in Esports Betting
In a Forbes article, it highlights that cancellation in sports events has engaged a number of audiences who would like to bet more on esports. It’s just not the fans who are concentrating more on esports betting, but also investors and sponsors are investing in esports betting at the time of the pandemic.
Apart from certain challenges, the esports industry is expected to rise in the upcoming years. A German online portal for statistics has declared that esports revenues will globally reach up to $1.79 billion in 2022.
It also states that it may get over 645 million viewers worldwide in the next year.
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