Burgeoning genre evolves in search of new growth; characterizes wider change across the TV business
LOS ANGELES--(BUSINESS WIRE)--The market for esports video continues its rapid growth worldwide. Total hours viewed in the genre exceeded 6 billion globally in 2016, up 19 percent from 2015, according to a new report entitled “Esports and The Future of TV” from business information provider IHS Markit (Nasdaq: INFO).
Online viewing is driving the esports video market, accounting for more than 85 percent of time spent watching esports. China is by far the largest market for esports video, accounting for 57 percent of all viewing last year. The number of video streams delivered in China totaled 11.1 billion in 2016, compared with North America, the second-largest market, with 2.7 billion video streams.
NOTE TO JOURNALISTS: The rise of esports is one of many topics that leading experts will address at the first Media and Technology Conference by IHS Markit, in Los Angeles, on Wednesday, May 10. Accredited journalists may attend the one-day conference free of charge – at the Pacific Design Centre – by registering at the following event website: https://technology.ihs.com/Events/590411 and entering discount code MEDIA17.
The new report on esports video focuses on the opportunities, challenges and key strategic initiatives from the industry’s top players. It is the first in a series of two esports reports to be published by IHS Markit in 2017.
Major media and tech firms tap into esports’ value
“The rapid growth of esports audiences has attracted some of the industry’s largest media and technology companies to the genre, with the likes of Amazon and MTG acquiring key assets,” said Ted Hall, research director for IHS Markit and the report’s lead author. “Some of these acquisitions are initiating shifts in esports business dynamics, with players such as China’s Tencent seeking to control assets across the value chain, and publishers moving into league operation.
“Investment in esports will pay off for its big-name backers, as the genre expands both within its target demographic and outside it, with increasing exposure on linear TV set to bring in casual and new fans,” Hall said.
Esports’ prospects for generating advertising revenue are expected to mirror the genre’s audience growth trend, IHS Markit says. Esports advertising totaled about $280 million globally in 2016, with the category expected to become a $1 billion advertising industry by 2021. This growth will be primarily driven by video, influencer marketing and sponsorship.
Esports video reveals much about the future of TV
According to Dan Cryan, senior director – IHS Markit, and another of the report’s authors, esports video provides a view, in microcosm, of changes that are happening across the TV business.
“The rise of esports provides some valuable lessons for channels and programmers more broadly,” Cryan said. “In particular, it demonstrates the value of aggregating audiences globally, rather than the more country-specific approach that defined much of the traditional TV business.
“Esports video is a perfect example of the increasingly complicated competitive landscape in TV. In the ‘old world,’ broadcasters would compete with broadcasters and pay TV operators would compete with pay TV operators,” Cryan said. “Today, an emerging class of new entrants competes for audiences driven by objectives and business models that are orthogonal to traditional TV. This is not just online channels taking a traditional business model and moving it online, this is something new. Publishers, for example, deliver esports video because it helps their other commercial interests rather than having content monetization as their primary focus. This sort of competitive diversification is set to become more common and spread to other genres with time.”
Tech, media topics at upcoming conference
The May 10 IHS Markit conference will provide a holistic view of the consumer, technology and business trends that will define audio-visual entertainment landscape over the next five years. George Bloom, executive producer of CBS Digital, will deliver the keynote speech at the first-ever Media and Technology Conference, presented by IHS Markit (Nasdaq: INFO).
In addition to a talk on esports, session topics presented by industry-leading speakers from an assortment of leading tech and media companies will include: “The Five Forces Shaping Entertainment for the Next Five Years,” “UHD: From More Pixels to Compelling Viewing?,” “Streaming & the Future of the TV” and “Selling Digital Content.”
About IHS Markit (www.ihsmarkit.com)
IHS Markit (Nasdaq: INFO) is a world leader in critical information, analytics and solutions for the major industries and markets that drive economies worldwide. The company delivers next-generation information, analytics and solutions to customers in business, finance and government, improving their operational efficiency and providing deep insights that lead to well-informed, confident decisions. IHS Markit has more than 50,000 key business and government customers, including 85 percent of the Fortune Global 500 and the world’s leading financial institutions. Headquartered in London, IHS Markit is committed to sustainable, profitable growth.
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