Jason Sugarman Comments on Factors Driving Growth in eSports Industry
Monday, July 22, 2019 11:25 AM
LOS ANGELES, CA / ACCESSWIRE / July 22, 2019 / When competitive video gaming debuted in the 1970s, few could have predicted that the activity which has come to be known as esports would become a massive industry. Its attraction has been growing exponentially over the past decade, with game publishers, hardware suppliers, advertisers, investors, media companies, sports clubs, and celebrities rushing to get involved in this exciting new market. Industry participants and analysts believe the best is yet to come, and although projections vary, the consensus points to esports becoming a billion-dollar industry in 2019 and sustaining its growth momentum in the years ahead due to a combination of factors, comments leading financier Jason Sugarman.
While large tournaments were organized throughout the 1990s, esports became a truly international phenomenon post-2000, receiving a boost from the improvements in computer hardware, the increasing availability of broadband internet connectivity, and the rise of streaming platforms. According to Statista, the industry generated revenues of $120 million in 2012, going on to post impressive growth in the years through 2018, when its value reached $865 million. The figure is expected to cross the billion-dollar mark in 2019 ($1.1 billion) and rise to $1.79 billion in 2022. Statista points to sponsorships and advertising as the primary revenue contributors, with betting, prize pools, tournaments, merchandise, and ticket sales accounting for the rest. Similar numbers feature in the most recent report from Newzoo, a research company specializing in esports market intelligence and analytics. Pegging the industry’s value at $1.7 billion in 2021, Newzoo predicts that overall gaming revenues will surpass those generated by traditional professional sports, and the key driver will be esports. The report suggests that this growth will be fueled, to a large extent, by investments from many brands eager to attract younger demographics.
Industry insiders also believe that the accelerating involvement of non-endemic companies will play a pivotal role in the future success of esports. Car manufacturers, telecommunications groups, and consumer goods brands have entered into sponsorship deals, supporting events, leagues, and gaming teams, as Jason Sugarman notes. Since a large portion of esports revenues come from such agreements, the keen interest of companies other than game publishers and technology suppliers will be an essential growth driver. As esports keeps gaining in popularity around the world, there are further opportunities to boost revenues through broadcasting rights and merchandising deals, according to a report from Infoholic Research. The market intelligence provider, which expects the industry to exceed $3 billion in value by the end of 2025, also sees a positive impact from mobile gaming, which will, in turn, benefit from the constant improvements in processing power and the spread of 5G connectivity.
Jason Sugarman has established himself as a financial industry expert with a stellar track record in the fields of asset-based lending, private equity, and debt investment. A professional with more than 20 years of experience, he has worked on financial services, infrastructure, and real estate projects around the world. He has been running a family office in Beverly Hills, California, since February 2007, and is currently focusing on investments in 5G companies which enhance and enable the eSports industry. To date, Jason Sugarman has made a number of eSports investments which have increased by five to ten times.
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SOURCE: Jason Sugarman