ESPORTS 101

What are Esports?

Esports, short for “electronic sports”, is the growing business of playing video games competitively in front of a viewing audience.

Game system
Twitch Streaming

Credit: GeekWire. March 14, 2018.

Twitch streaming record of 635k viewers set by Ninja and Drake
Fortnite

Credit: Epic Games.

Popular gaming title, “Fortnite”
Overwatch League

Credit: Blizzard Entertainment.

Overwatch League Finals. Barclays Center, July 2018
Riot Games

Credit: Riot Games.

Gameplay from Riot Games’ League of Legends
 

Why Invest in Esports?

Esports sits at the nexus of growth trends within streaming, live original content, sports, and mobile, ushering in a new age of media and entertainment. With a young and rapidly-growing global audience, the esports market is experiencing accelerating revenues and expanding monetization methods.

The Roundhill BITKRAFT Esports Index offers exposure to the fastest growing segment of the $130+ billion global video game market. The current composition consists of industry-leading companies from 11 countries and 3 continents.

World Map

GLOBAL GAMING REVENUES
CAGR: +9.3%

TOTAL 2018-2022

Gaming is the fastest-growing form of entertainment globally, with revenues increasing at 9%+ per year. By 2022 the global video game market is expected to surpass $190 billion in revenues.

Roundhill believes that esports and video games are the future of live media, sports and entertainment. Esports, defined at Roundhill as competitive video gaming in front of a viewing audience, is the driving force behind the global phenomena in gaming.

Market report chart

Source: ©Newzoo | 2019 Global Games Market Report

FINALS AUDIENCE VIEWERSHIP (millions)

Source: Goldman Sachs Global Investment Research, Nielson, Rentrak

Finals Audience Chart
ESPORTS AUDIENCE GROWTH FORECAST (millions)

Source: Goldman Sachs Global Investment Research, Newzoo

Esports Audience Chart
ESPORTS & GAMING BY THE NUMBERS

Source: Newzoo Global Games Market 2019, EEDAR 2018 Gamer Segmentation Report, Newzoo 2019 Global Esports Market Report, 2017 Superdata Gaming Video Content, TEO 'The Rise of Esports Investments'.

Game Controller
PLAY

2.5 billion

Gamers globally, including 2 in 3 Americans.

Television
WATCH

454 million

Esports viewers worldwide, growing to 645 million by 2022. More people watch video games than Netflix, HBO, ESPN, and Hulu - combined.

Money bag
INVEST

$4.5 billion

Invested privately in esports in 2018.

Profit chart
GROW

$152 billion

In revenues for the global video game market in 2019, increasing 9%+ per year.

 
THE ESPORTS ECOSYSTEM

Roundhill defines esports as competitive video gaming in front of a viewing audience, thereby including amateur competitive gaming (i.e. streaming) as part of the broader opportunity set.

 

 

 
EXTERNAL RESOURCES
Industry Research
Newzoo 
SuperData 
Goldman Sachs