Esports continues its rise despite the pandemic as it surpassed the billion-dollar mark this year. But where exactly does Esports make its money? Data presented by safebettingsites.com revealed that revenue from sponsorships made up 58% of the industry’s total revenue worth an estimated 614.9 million dollars.
Sponsorships in Esports Broken Down
Esports has become a global phenomenon that has come a long way from the early days of Pong. Video games were once forms of entertainment meant to be enjoyed by a single individual or at most a single household. Now, it is a global spectacle that is watched by thousands of fans in full-sized sports arenas, not to mention by millions of fans around the world online. The industry has several revenue streams to thank for its billion-dollar market valuation. Sponsorships make up a majority of the revenue streams making up 58% of total revenue with media rights the second most profitable revenue stream making up approximately 17% of total revenue. Other research shows that a breakdown of sponsorships in 2019 indicate that consumer goods were the biggest sources of sponsorship revenue with technology sector coming second and the clothing sector rounding up the top three spenders.
2023 Forecasts for Esports Revenue
With Esports ever-growing popularity the industry is forecasted to grow at meteoric pace in the next few years. Forecasts by experts show that media rights will soon overtake sponsorships as the main source of revenue for Esports.