Esports Revenues Moving from Sponsorships to Media Rights in The US

Esports Revenues Moving from Sponsorships to Media Rights in The US

In 2022, the total video games and esports revenue in the US was $54.1 billion in and is forecast to reach $72.0 billion by 2027, according to a report by PricewaterhouseCoopers (PwC) and shared by GamesBeat.

That represents a 5.9% compound annual growth rate (CAGR) from 2022 to 2027. Year-on-year growth in 2022 was 2.4%, representing the lowest growth rate the video games and esports market in the US has experienced in five years.

Previously the largest video games market in the world, the US was overtaken in 2021 by China’s rapidly
growing appetite for games. Nonetheless, the US will remain one of the most significant presences in the
global video games market, with US-based companies like Apple, Google and Microsoft holding substantial influence over the future trajectory of video gaming.

Total esports revenue in the US will grow from $455 million in 2022 to $662 million in 2027. This is equivalent to an increase at a 7.8% CAGR, which is below the global average of 10.9%, although this is likely due to the esports ecosystem being well established in the US.

Sponsorship will lose its position as the largest segment throughout the forecast period to the media rights category, with revenue reaching $230 million in 2027. The fastest-growing segment – at 12.7% CAGR – will be media rights as many new deals are agreed, like the 35 new Blast Premier deals to stream and broadcast esports events.

This is in contrast to many other countries where the fastest-growing segment is consumer ticket sales, which in the US will only increase at a 5.6% CAGR to reach $46 million in 2027. US ticket sales recovered strongly in 2022, up from $13 million in 2021 to reach $35 million, as many events reopened to live audiences again.

The esports industry is growing increasingly mature, and starts to have a lot more in common with the other parts of the entertainment and media ecosystem than it did in the past. Hollywood is looking to video games to find growth. And consumers are going deep into video game experiences of all kinds. The complete view of a customer entertainment experience will put the player at the center and put the customer experience at the center.



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