Live game streaming is steadily acquiring market share in the global gaming industry. Esports is the category that is specially propelling the market for live game streaming. The World Economic Forum says that Esports viewers spent 17.9 million hours on different channels like YouTube and Twitch in the first quarter of 2018. When it comes to mobile streaming, Streamlabs states that it had an active gaming userbase of 480,000 in June 2019. This marks an almost 320% increase from the number of active users they had a year before.
China and the United States lead the games market globally in terms of revenue and participation (source is here). But the fact that 5 of the top 10 countries in the list are European (namely Germany, UK, France, Italy and Spain), it goes to show that Europe is the next big hub for gaming and Esports which consequently makes it a huge market for video and OTT streaming services.
Europe has already become a fast-growing market for gaming in terms of revenue and viewership. Just Esports alone generated €300 million in 2019 and raised €630 million in capital (Source is here). According to Newzoo, European esports audiences touched 92 million in 2020. This is a nearly 18 million increase form 2019. Some of the most popular gaming brands in Europe are League of Legends, Call of Duty, Counter Strike and FIFA. Broadcasters and video streaming providers are taking note of the entertainment value generated by projecting live gaming on screens. Some of the current media rights companies like RFRSH Entertainment, DOJO Madness and Streaker have realized the potential of the market and are investing in it to earn revenue. Their use of advanced OTT technology has made it convenient for fans to access esports content at their own convenience.
Another benefactor that has contributed to the growth of esports gaming in Europe is the involvement of brands as sponsors. Some of the most recognized brands that have backed esports events include Mastercard, Mercedes-Benz, BMW, Gucci, Volvic and TAG Heuer among others (source is here). This extends to media coverage as well. An increased media coverage has allowed esports to compete effectively with traditional sports events like football and basketball. It has also improved awareness about esports in Europe which is directly linked to more opportunities for acquiring revenue.
There is a wide array of revenue-making options that an esports event can present. According to Newzoo, brand sponsorship accounted for nearly 38% of the overall revenue in 2017. This was followed by advertising which garnered 22% of the revenue, followed by game publisher fees, media rights and merchandise and tickets at 17%, 14% and 9% respectively.
With the European esports market growing at a phenomenal rate, the reasons for media houses to consider investing in OTT development for live game streaming are aplenty. Apart from the several key factors mentioned above, another important reason is audience loyalty. Only about half of the esports fans play the video game they are watching and nearly 60% of the fans are willing to travel to see their favourite games, tournaments and players. 65% of the fans are between the ages of 18-34 and with this age group being the most digitally active group, digital targeting becomes an extremely lucrative option. Besides, broadcasting and media rights will continue to be a significant growth changer in esports. The media rights sector for esports is projected to grow up to $617 million by 2023 (Source is here).
In conclusion, now is the absolute right time to develop an OTT which taps into the live stream gaming industry specially in Europe.
Need help on how to navigate your live stream possibilities in the European gaming market? Connect with Enveu right away.