Esports market growth depends on the 3 ‘Ps’

The video game market is booming — PwC’s recent Global Entertainment & Media Outlook predicts it will reach a revenue of over $30 billion by 2023, compared to $16 billion in 2014, in the U.S. alone. Within the burgeoning gaming market, PwC cited esports as the fastest-growing segment, predicting an annual growth rate of 18.3 percent through 2023.

While esports is catching on with some audiences – we often hear of professional sports stadiums selling out for esports tournaments – it’s important to remember the frequency of ticket sales or viewership does not necessarily equate to high revenues. In fact, the esports industry today doesn’t make nearly as much money per fan as traditional sports, despite having the interactive and richly technical DNA to deliver entirely new experiences. For example, a professional sports league like the NFL earns a revenue of around $50 per fan, while that number for esports is only $3.20.