Newzoo: 2020 Worldwide Esports Revenue Will Be $950 Million

Esports Revenue: $950 million in 2020

The impact of the COVID-19 pandemic has resulted in the cancellation of many esports events that feature in-person events. While many of these activities have moved online, it has affected key revenue drivers such as ticket and merchandise sales. Unlike a physical tournament, fans no longer make impulsive merchandise purchases due to the hype at the event. As such, Newzoo revised its 2020 forecast for this segment from $76,2 million to $52,5 million, down 50,3% from the previous year.

However, the audience and viewers of esports have not declined. Riot Games' League of Legends Championship Series (LCS) and League of Legends European Champions (LEC) Summer Split matches have increased by 16,7% and 30%, respectively, compared to the Spring Split. The market research firm notes that viewership typically drops by 20% to 30% during the summer.

Newzoo: Digital Goods +60,9% YoY

The early digital shift has also allowed companies to find new markets to recoup revenue streams. Sponsorships are estimated to have risen 7,5% year-over-year (YoY) to $584,1 million, while media rights clearance rose 3,3% to $163,3 million. Digital was up 60,9% YoY to $21,5M and streaming was up 44,9% YoY to $19,9M. Despite this improvement, international travel restrictions have resulted in restrictions on competition for games such as Counter-Strike: Global Offensive и Dota 2 .