In terms of players and viewers, esports games like CS: GO saw a rise in popularity in 2020. It was brought on by larger worldwide events, which resulted in the postponement or cancellation of traditional sports leagues and tournaments. At the same time, millions of people were stranded at home and sought out internet entertainment. Whether this actually signalled Esport’s ascent into the mainstream was among the most important questions at the time. Or was it simply a brief uptick and esports were about to revert to its earlier, limited level of acclaim? We know the solution now, after two years. With more than 530 million viewers, the annual revenue from worldwide esports is predicted to be $1.4 billion. It’s expected that both of these numbers will increase each year.
Ticket sales for the major competitions and possibly online subscriptions to watch the action live streams come to mind when you think of sports revenue. However, that makes up a very minor portion of the $1.4 billion in income that esports will bring in in 2022.
Actually, the majority of income comes from sponsorship and advertising partnerships, which some esports firms are better at utilising than others. There are additional revenue sources that are proven to be more successful. Sports betting is a good illustration. A rising number of eSports fans are learning how to place wagers online as more US states legalise sports betting each year. In the same manner that NBA and NFL fans have been placing bets on sports in the US for years, they are supporting their favourite esports teams.
We previously highlighted that some esports businesses are proven to be more successful at generating revenue from their operations than others. If we only focus on tournament prize money, Team Liquid has a sizable advantage over the competition. The Dutch esports superpower boasts representation in 19 different eSports and has won more than $39 million by competing in about 2,300 esports competitions.
But if there is still any doubt that esports has entered the ranks of other sports, the fact that a team’s worth is determined by factors other than its performance should suffice. Team SoloMid, often known as TSM, a US-based esports organisation, became the first to have an estimated worth of more than $500 million this year.
Esports teams are carefully assessing cutting-edge technologies like blockchain and the metaverse as they look toward 2023 and beyond. A single statement serves as proof that success or failure can occasionally hang in the balance when TSM and Fnatic struck collaborations with FTX and crypto.com, respectively, in 2022. Some people want to take advantage of the growing play-to-earn sector, which pays players in digital currency.
It is not hard to imagine a time in the future when games may be connected via a metaverse, giving teams more leverage over publishers. In terms of new technologies and the larger global economy, these are uncertain times. However, esports is still in good shape and has a bright future.