The boom doesn’t really date from yesterday and goes back to the early days of the web in the 1990s, but it is certainly the spread of the Internet and the popularity of video games since the early 2000s that have likely accelerated this trend, particularly affecting Millennials, Gen Z, and probably very soon, the Alphas (generation 2010-2024).
It is evident that eSports has now become a market of its own, with its e-athletes, various disciplines, codes, staff, and most importantly, its more than promising economic prospects. In 2021, revenue related to the eSports market represented over a billion dollars worldwide, with more than 200 million from Europe alone.
Indeed, it is observed that the eSports economy generally depends on the same sources of revenue as so-called “traditional” sports, namely: sponsorship, broadcasting rights, commercial revenues, and ticket sales.
In concrete terms, sponsorship, which alone accounts for about 60% of eSports-related income, is manifested by the financing of major competitions, usually by companies linked to the world of gaming (Valve) or computing (Intel, Sony), but not exclusively. Some equipment manufacturers (Adidas, Hummel) now seem very interested in having their names appear on the jerseys of these new kinds of athletes. This can range from a simple logo (Orange, Redbull) to advertising campaigns on social media, like Aldi, a partner of the best French eSports team at the moment: Vitality.
Regarding broadcasts, these can obviously take place via generalist channels (BBC) or specialized ones (ESPN, Nolife TV, Game One), which pay rights as for any sports event, but streaming is also an essential mode of distribution in the eSports world. For several years now, the platform Twitch (owned by Amazon) has dominated the market, and it has a unique feature, allowing its various members to support players by giving them money during live streams, or even on a monthly basis.
So-called commercial revenues mainly come from merchandise sales. These can be physical, such as ready-to-wear: t-shirts, sweatshirts with a team logo, goodies (keychains, mouse pads…) or digital. There are indeed elements usable within video games called “skins,” intended to change the appearance of a visual element, with prices ranging from a few euros to several thousand.
Finally, ticket sales represent another particularly interesting source of revenue during major events, such as Majors. The public always shows up, ticket prices vary according to category, much like those sold to attend a football match or a concert, and their amount can reach up to a hundred euros.
Ultimately, regardless of one’s perception of eSports. Whether it is a mere virtual hobby for gaming enthusiasts with a competitive spirit or a genuine sports activity in its own right, the fact is that the enthusiasm and the revenue the sector generates are very real.
It is estimated that by 2024, the global eSports market will exceed 1.5 billion euros.
