A report from research firm Newzoo shows that the esports market is expected to eclipse $1B in revenue for the first time in '19, with 42% of that "projected to come from sponsorships, which have hit record numbers in the past few years," according to Jacob Wolf of ESPN.com. The esports industry brought in $865.1M in revenue in '18 and stands to reach $1.1B in '19. With a growth rate of 22.3% year over year, Newzoo predicted that the industry will rake in $1.79B in revenue by '22. These numbers are "more modest than previous reports from the firm," which outlined $1.5B by '20. Newzoo reported that the industry will "take an additional year" to hit those numbers. The majority of esports revenue will "come from brand investments." In the past few months, companies such as Coca-Cola, Alienware and others have "forged global deals with the Overwatch League and League Championship Series respectively" (ESPN.com, 2/12). Advance Publications, which owns SBJ/SBD, also owns a majority stake in Newzoo (THE DAILY).
GROWING IN NUMBERS: The ESPORTS OBSERVER's Trent Murray noted in addition to revenue projections, Newzoo’s report states that the "total esports audience" will reach 453.8 million in '19. Of that number, 201.2 million will be "Esports Enthusiasts." Newzoo projects that Asia-Pacific will account for 57% of all Esports Enthusiasts in '19, with Europe accounting for 16% and North America making up 12% (ESPORTSOBSERVER.com, 2/12).
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