Table of Contents
Executive Summary
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- Top takeaways
- Market overview
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- Figure 1: Global esports revenue, 2018-20
- Impact of COVID-19 on gaming and esports
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- Figure 2: Short-, medium- and long-term impact of COVID-19 on gaming and esports, August 2020
- Opportunities and challenges
- Competing and crossing over with traditional sports
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- Figure 3: Recency of watching sports and gaming content, May 2020
- 2020 audience will need to be retained
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- Figure 4: eSports viewing in 2020 compared to previous years, May 2020
- Brands that support esports players get supported by viewers
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- Figure 5: Interacting with esports players, May 2020
- Combine gameplay with gaming content
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- Figure 6: Reasons to watch and avoid video game content – Gameplay, May 2020
- New games bring new opportunities for competitions
- eSports investments challenged by a lack of live events
- What’s next
The Market – Key Takeaways
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- COVID-19 slowed booming esports market
- Sponsorships soar as ticketing sales plummet in 2020
- Increasing gamer population fuels esports audience growth
- A lack of traditional sports opens some doors to esports
- New opportunities emerge in growing esports landscape
Global eSports Market Size
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- eSports market remains strong, but growth is slowed by COVID-19
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- Figure 7: Global esports revenue, 2018-20
- US implications for esports market
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- Figure 8: Key drivers affecting Mintel’s market forecast, 2019-25 (prepared in August 2020)
- Impact of COVID-19 on gaming and esports
- Lockdown
- Re-emergence
- Recovery
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- Figure 9: Short-, medium- and long-term impact of COVID-19 on gaming and esports, August 2020
- COVID-19: US context
- Learnings from the last recession
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- Figure 10: Spending more time doing home entertainment activities vs prior year, 2008-10
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- Figure 11: Consumer spending on cable, satellite, other live TV; 2006-10
Global eSports Segment Breakdown and Performance
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- Sponsorships drive esports revenue
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- Figure 12: Global esports revenue, by revenue stream, 2020
- COVID-19 hits merchandise and ticketing the hardest
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- Figure 13: Year-over-year growth of esports revenue streams, 2019 vs 2020
- Four games dominate global esports viewing
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- Figure 14: Global live esports hours watched on Twitch, YouTube and Mixer, 2019
Target Audience – The US Gamer
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- Share of adults who play video games is growing
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- Figure 15: Share of US adults who play video games, 2018-20
- Who are gamers?
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- Figure 16: Profile of US gamers, by key demographics, May 2020
- Mobile attracts the largest audience
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- Figure 17: Gaming devices used, May 2020
- Gaming is a daily habit
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- Figure 18: Frequency of gaming and weekly hours, May 2020
- Casual gaming is common
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- Figure 19: Reasons to play video games, May 2020
- Puzzle and board games have the largest audience
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- Figure 20: Types of games played, May 2020
Market Factors
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- Traditional sports shutdowns open door for esports
- Delayed seasons leave hole in sports coverage
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- Figure 21: Sports leagues regularly viewed, July 2020
- Passionate fans gravitate to esports to fill the void
- Live events will be hard to come back to
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- Figure 22: Attitudes toward sports as a result of COVID-19, July 2020
- Gamers play more during COVID-19 than they did before
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- Figure 23: How much gamers are playing video games since COVID-19 outbreak, May 2020
- Sports fans take to social media to learn more
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- Figure 24: Social media sites used to follow sports, July 2020
- Streaming passes cable to be primary video entertainment
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- Figure 25: Video sources used, May 2020
- Financial help coming to buoy esports organizations
Market Opportunities
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- Invest in the live experience once the dust clears
- Make esports more relevant to all audiences, not just young men
- Look to new games for emerging markets
- Academic institutions can be practice for the big leagues
- Mixer shuts down, opening the door for other platforms
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- Figure 26: Where Mixer viewers also watched gaming content, May 2020
The eSports Landscape – Key Takeaways
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- Eight games capture the attention of many esports fans
- New industries extend influence into esports
- Collaborations and exclusives will help organizations stand out
Overview of eSports Games
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- Fortnite
- What it is
- Spotlight on competitions
- League of Legends
- What it is
- Spotlight on competitions
- Counter-Strike: Global Offensive
- What it is
- Spotlight on competitions
- Overwatch
- What it is
- Spotlight on competitions
- Dota 2
- What it is
- Spotlight on competitions
- Rocket League
- What it is
- Spotlight on competitions
- PlayerUnknown’s Battlegrounds
- What it is
- Spotlight on competitions
- Hearthstone
- What it is
- Spotlight on competitions
How Non-Gaming Brands Have Worked with eSports
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- Positive reception to outside sponsorships means opportunity for brands
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- Figure 27: Popularity of non-gaming brands in gaming, October 2019
- Fashion and apparel
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- Figure 28: @LouisVuitton LoL partnership Twitter post, September 2019
- Healthcare
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- Figure 29: @Cloud9 Kaiser Permanente partnership Twitter post, May 2020
- Foodservice
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- Figure 30: @EAMaddenNFL Pizza Hut Stadium Twitter post, April 2020
- Financial services
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- Figure 31: @MastercardNexus Twitter post, July 2020
Competitive Strategies
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- Crossing over with traditional sports
- Sports organizations extend reach into esports
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- Figure 32: @CycloneATH Madden Summer Challenge Twitter post, June 2020
- eSports players train like athletes from other sports
- Developers are working with broadcasting platforms for deals
- Making esports easier to find
- Aggregating different esports under one umbrella
- Teams are becoming their own brands
- Bringing esports to big and small screens
- Giving esports the celebrity treatment
- Celebrities get behind esports
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- Figure 33: Celebrities and esports investments
- Validating esports with awards
- Incorporating 5G with the future of esports
The Consumer – Key Takeaways
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- Competitive gaming attracts one third of adults
- A flood of new viewers in 2020
- Gameplay creates fans of gaming content
- Games connected to US players have the greatest reach
- YouTube gets the largest audience, but Twitch and Facebook have the most passionate fans
- eSports fans see gaming competitions as a sport
- Viewers see players as entertainers more than competitors
- Work with esports players outside of competitions
- Digital events should take precedence over live ones
Key Consumer Trend Drivers Impacting eSports
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- Technology
- Rights
- Identity
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- Figure 34: Mintel Trend Drivers – Technology, Rights, Identity and Pillars
Watching eSports and Gaming Content
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- eSports has attracted the attention of one third of adults in the past year
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- Figure 35: Profile of active esports viewers, by key demographics, May 2020
- Making and viewing gaming content has gathered an audience in the past year
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- Figure 36: Recency of watching and broadcasting gaming content, May 2020
- eSports can compete with traditional sports because of COVID-19
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- Figure 37: Recency of watching sports and gaming content, May 2020
- eSports viewers branch outside of competitive gaming
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- Figure 38: Watching sports and gaming content, all vs active esports viewers, May 2020
eSports in 2020
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- Surge of new viewers in 2020 signals potential for future growth
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- Figure 39: eSports viewing in 2020 compared to previous years, May 2020
- Twitch users have deepened engagement, but Facebook and ESPN are bringing in new audiences
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- Figure 40: eSports viewing in 2020 compared to previous years, by type of platform used, May 2020
- eSports are here to stay
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- Figure 41: Perceptions of esports as a fad, May 2020
- In their words: esports in the future
Why People Watch and Don’t Watch eSports
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- Playing games often leads to gaming content consumption
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- Figure 42: Reasons to watch video game content, May 2020
- Multicultural audiences seek skill, community in gaming content
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- Figure 43: Reasons to watch video game content – Select items, by race and Hispanic origin, May 2020
- Boredom in gaming content creates disinterest
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- Figure 44: Reasons not to watch video game content, May 2020
What Games are Watched
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- Viewing interests spread across titles and genres
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- Figure 45: Number of games watched by esports viewers, May 2020
- Sports games reach the largest share of esports viewers
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- Figure 46: Gaming genres watched, all gaming content viewers vs active esports viewers, May 2020
- Fortnite reigns on top in the US
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- Figure 47: Video games watched, all gaming content viewers vs active esports viewers, May 2020
- Older games reach an older audience, while newer games bring in younger adults
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- Figure 48: Video games watched, by generation, May 2020
Platforms to Watch eSports
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- Most esports viewers don’t depend on one viewing location
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- Figure 49: Number of sources used to watch esports, May 2020
- Three quarters of esports viewers go to YouTube
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- Figure 50: Websites used to watch esports, all gaming content viewers vs active esports viewers, May 2020
- ESPN touts sports brand to rule TV
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- Figure 51: TV channels used to watch esports, all gaming content viewers vs active esports viewers, May 2020
- Age draws a line between YouTube and ESPN
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- Figure 52: Platforms used to watch esports, by age, May 2020
- Strategy games prop up Twitch and Facebook
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- Figure 53: Platforms used to watch esports, by video games watched, May 2020
Perceptions of eSports
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- Most adults see esports as confusing and insulting to sports…
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- Figure 54: Correspondence Analysis – Principal map – Perception of sports from general population, May 2020
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- Figure 55: Perception of sports from general population, May 2020
- …while gaming content viewers see the innovative and diverse appeal of esports
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- Figure 56: Correspondence Analysis – Principal map – Perceptions of sports from gaming content viewers, May 2020
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- Figure 57: Perceptions of esports, all adults vs active esports viewers, May 2020
Perceptions of eSports Players
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- Different perceptions of esports and players present challenges and opportunities
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- Figure 58: Perceptions of esports and esports players, May 2020
- In their own words: lack of physicality for esports players
- eSports viewers see themselves in the competition
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- Figure 59: Professional video game aspirations, all gaming content viewers vs active esports viewers, May 2020
- Team-based and solo gameplay have similar appeal
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- Figure 60: Team vs individual game viewing, all gaming content viewers vs active esports viewers, May 2020
Interacting with eSports Players
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- The appeal of eSports players extends beyond the competition
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- Figure 61: Interacting with esports players, May 2020
- Twitch, Facebook viewers connect with athletes
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- Figure 62: Interacting with esports players, by platforms used to watch gaming content, May 2020
The Appeal of Live eSports
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- Online viewing is preferred over the live experience
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- Figure 63: Watching gaming online and in-person, all gaming content viewers vs active esports viewers, May 2020
- Live esports viewing depends on the game people watch
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- Figure 64: Attending live esports events, by type of game watched, May 2020
Appendix – Data Sources and Abbreviations
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- Data sources
- Sales data
- Consumer survey data
- Consumer qualitative research
- Abbreviations and terms
- Abbreviations
- Terms
Appendix – The Market
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- Figure 65: Payroll Protection Program relief in esports, July 2020
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Appendix – Mintel Trend Drivers
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- Figure 66: Mintel Trend Drivers and Pillars
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