How the eSports Industry Fares Against Traditional Sports

In just a decade, electronic sports (eSports) has evolved from an underground culture into a mainstream industry worth billions of dollars today.

The industry is growing at an explosive rate, and with major tech giants like Amazon and Google vying for a piece of the pie, the future of this industry is an exciting one.

It’s no surprise that eSports is often compared to its predecessor, traditional sports. However, eSports certainly has none of the typical confines of a traditional sport—so how does it compare in terms of audience size, market potential, and revenue?

An Equal Playing Field?

eSports is an umbrella term for competitions played on electronic systems, typically by professional video gamers—with the first competition dating back to 1972.

The 16 to 24-year-old audience has increased by 60% since 2017, fueling the rapid growth of this emerging industry. The global audience is expected to grow to 276 million by 2022, with League of Legends tournaments often boasting a higher viewership than some of the biggest U.S. leagues:

Cumulative Viewership (2017 finals)

• NFL Super Bowl: 124 million viewers
• League of Legends: 58 million viewers
• MLB World Series: 38 million viewers
• NBA Finals: 32 million viewers
• NHL Stanley Cup Finals: 11 million viewers

While viewership can surpass that of well-known professional leagues, it doesn’t yet stack up in terms of monetization. That said, this aspect is now increasing enough to be seen as a threat to more traditional leagues.

How Much is eSports Worth?

According to Goldman Sachs, eSports will exceed $1 billion in revenue in 2019, and reach $3 billion by 2022. eSports creates the foundation for an entire ecosystem of opportunities, which include live-streaming, game development, player fanbases, and brand investments for sponsorship and advertising—where 82% of revenue currently comes from.

Although eSports under-indexes on monetization relative to the size of its audience, there is a huge opportunity for it to close the gap, given the predicted 35% compound annual growth rate (CAGR) for total eSports revenue between 2017 and 2022.

Getting Attention from the World’s Biggest Players

The success of eSports tournaments is attributed to live-streaming platforms. Amazon’s purchase of leading video-streaming site, Twitch, allowed Amazon to tap into the rapidly growing eSports audience, along with other live-streaming opportunities. Since the acquisition in 2014, the number of average viewers has doubled to 15 million, half of YouTube’s daily viewership.

Google, which lost the bidding war for Twitch, has recently made its own big move into gaming with cloud gaming service Google Stadia. Ultimately, the company hopes it will help keep live-streamers on YouTube instead of competing platforms.

The Future of eSports

Over time, eSports will tap into bigger advertising budgets, and reach national, regional, and global levels, as traditional sports are able to. eSports will also be a medal event in the 2022 Asian Games, which could pave the way for full Olympic status.

As a whole, eSports is starting to seriously compete with the big leagues. With a massive worldwide appeal, passionate fans, and billion-dollar revenues, the industry is only beginning to take flight.

The debate however, is not around the battle between eSports and traditional sports. It is around the shift to celebrating a culture that is completely virtual, over one that is physical—which has much bigger implications.

Interactive: How Do Americans Differ by Age?

The human experience changes dramatically over the course of a lifetime.

While we each intrinsically know that our days as teenagers will be vastly different from those as senior citizens, it is interesting to see how this looks from a 10,000-foot perspective.

Using demographic data on the American populace, we can spot key differences between age groups, including some aspects that make each generation of Americans unique.

The U.S. Population, by Age

Today’s interactive data visualization comes to us from Overflow Data, and it charts out the entire U.S. population by age group.

The graphic allows you to sort demographics based on data pertaining to specific topics—such as whether people own or rent their house—to see how age affects answers to these different questions. The interactive visualization also allows you to filter results by geographic region, sex, marital status, or employment status.

Data here comes from the 2017 Public Use Microdata Sample (PUMS) via the American Community Survey, which is published by the U.S. Census Bureau.

Gauging Differences

Let’s dive into how American differ by age, by looking at some specific charts:

Employment Status, by Age

This is a simple one to start with, but it makes it easy to see how the data works. In the below chart, it’s evident that most younger and older Americans are not in the labor force, while the majority of working age Americans are employed or seeking work (unemployed).

Own or Rent, by Age

How about looking at whether Americans own or rent, or even if they live in a group quarters?

Race, by Age

The below chart is sorted by percentile, and it shows the percentage of individuals by race according to their age group. As the population skews younger, so does its racial diversity.

Marital Status, by Age

The below chart is sorted by percentile, and it shows the marital status (married, divorced, etc.) of different age groups.

The Generational Effect

For more on how Americans differ by age, learn about how different generations approach the workplace, as well as how they think about investing.