Esports and Money in 2020

Originally published on VC Cafe

We’re very excited about the potential of Esports at Remagine Ventures. Apart from the cultural phenomenon and increased viewership of Esports, like any other professional sport, there’s also a business aspect. So what’s the relationship between Esports and money and where does it stand in 2020?

A recent McKinsey report focused on the potential Esports represents for brands prompted me to dig deeper.

Esports industry revenues — scratching the $1 billion a year

Despite the massive viewership, Esports as whole is still relatively small when it comes to revenue. In 2020, revenues are expected to reach $1 billion, and grow by 60% in 2023.

Esports revenue growth for 2020 was recently downgraded by Newzoo to $950M — Source: Newzoo Global Esports Market report

A few facts about Esports revenue according to Newzoo:

• Global esports revenues will grow to $1.1 billion in 2020, a year-on-year growth of 15.7% from $950.6 million in 2019.
• In 2020, $822.4 million in revenues — or three-quarters of the total market — will come from media rights and sponsorship.
• China is the largest market by…