E-sports – an industry that pays to invest in

E-sports – an industry that pays to invest in
Jude Cooley
It takes approx. 4 minutes to read this article

E-sport has been developing laboriously for many years, but there came a moment when its popularity grew to a gigantic level. It is also influenced by the continuous development of technology and better quality titles, which more and more people start playing every year. Therefore, it is worth seriously considering investing in e-sports, because it can certainly bring considerable profits.

Breakthrough 2019 in e-sports

According to Newzoo analysts, 2019 was particularly significant for the e-sports industry, as profits generated from streaming and sponsorships grew at a very fast pace. Importantly, e-sports leagues are increasingly becoming stationary, allowing teams to compete in their own locations and charge admission. The idea of such an implementation of the games not only met with the enthusiasm of the fans, but also the players themselves and the sponsors, who saw in it a huge opportunity to popularize e-sports and make a lot of money.

The gaming market is maturing in different ways. Every now and then newer technologies are used to streamline the streaming process. Players and the companies that operate in this market have huge profits from the sale of digital goods. They do even better when they understand the e-sports market and make great use of its advantages over traditional sports.

Last year, there were a total of nearly 900 e-sports events, with nearly $60 million in ticket revenue. It is worth mentioning that this is an increase of several percent compared to 2018, with the prize money pool amounting to $167 million. As you can see, the development of e-sports is extremely dynamic, and the money that is invested in it and spent on prizes is huge. Not only that, but it is sure to match the popularity of traditional sports soon, and some have already surpassed it, such as athletics.

Jordan, Tyson and other great athletes are investing in e-sports

It is a well-known fact that where there is a lot of money, more and more investors start to appear, hoping for high profits. In this group there are also athletes. Tyson invested huge money in Fade 2 Karma, an organization that is known for its success in Hearthstone. Gortat, Pique and Jordan, who joined the group of shareholders of one of the most famous e-sports organizations – Team Liquid, also added their “three cents”.

The entire e-sports market is growing at an average of 9 percent per year. The aforementioned Team Liquid is valued at $467 million. On top of that, the company has created its training center in Utrecht, Netherlands, which houses more than a dozen divisions. Such diversification means that even if one division fails, another can supplement revenues by competing in other games. E-sports is further distinguished by its much more global reach, especially at a time when the world is facing a coronavirus pandemic. Teams can contract a player without having to relocate. Players usually train in their homes, and only meet for training on competition days and during bootcamp training.

What does e-sports make money on?

The main source of income is contracts with sponsors, but the fastest growing are the fees charged for broadcasts. It is also worth to add here the ads, because it is impossible to block them during the broadcast. Very often they are integrated with the stream, because they are embedded in the background or carry important information. For many years, major brands that once shunned computer games have been associated with e-sports. At numerous fairs you can see STS, Sprite, or Play. So, keep an eye on the dynamic development of e-sports, as investing in it will certainly be associated with high profit.

Featured Image: Freepik

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