18%
China鈥檚predictedcontributiontoworldesportsrevenuein2018
$906million
Predictedglobalesportsrevenuein2018
TanJun,30,canstillfeeltheadrenalinrushheexperiencedlastNovemberwhenwatchingtheworld鈥檚premiercompetitivegamingeventofthe2017LeagueofLegendsWorldChampionship(LLWC).
Asanindicationoftherocketingpopularityofgaming,thegrandscale,full-houseeventtookplaceinBeijing鈥檚iconicNationalStadium,dubbedtheBird鈥檚Nest,andusuallyreservedformajormusicconcertsandinternationalsportsevents.
鈥淭hepriceofasingleticketforthefinalgamefetchedanamazing6,666yuan($1,052),butstilltheyweresoldout,鈥漈an,whonowrunsanesports,orelectronicsports,players鈥檛eam,toldChinAfrica.
HeldinChinaforthefirsttimesincetheesportseventofLLWCwaslaunchedin2010,thechampionshipisregardedasamilestoneintermsofpublicandcommercialrecognitionofcompetitivegamingasasportinChina.Accordingtheworld鈥檚leadinggamingmarketresearchandpredictiveanalyticsfirmNewzoo,basedintheNetherlands,theLLWCwasthemostwatchedeventonTwitch,alivestreamingvideoplatform,in2017,generating$5.5millioninticketsales.
Withtheviewershipclimbingover100millionandonsiteaudiencetotaling40,000,theeventhascatapultedgamingfromapublicperceptionofitbeingacasualpastimetoamulti-billion-dollarbusiness.Ticketsalesarejustthetipoftheiceberginesportsrevenuesoverthepastyear.Newzoo鈥檚2018GlobalEsportsMarketReportreleasedrecentlypredictsthatglobalesportsrevenueswillreach$906millionin2018,agrowthof38.2percentyearonyear.China鈥檚contributionisexpectedtobeespeciallyprominent,accountingfor$164million,18percentoftheworldtotal.
Fast-growingbusiness
However,esportswasableakbusinessinChina10yearsagowhentheglobalfinancialcrisisstruck,duetolackofsponsorshipsandlimitedawareness.In2011,China鈥檚second-generationrichrepresentedbyWangSicong,theonlysonofChineserealestatetycoonWangJianlin,openedalotofdoorsforthesectorwiththeirreputationandmoney.
InAugustthatyear,WangpledgedtointegratetheindustryofesportswithapostonhisWeibo,ChineseequivalentofTwitter.Heinvestedheavilyinthesector,buyingadyingteamforabout$6millionandrenamingitInvictusGamingoriG.In2012,iGwonfirstplaceintheInternationalDota2ChampionshipsinSeattle,claimingtheprizemoneyof$1million.
Later,Wangexpandedhisesportsinteresttotheextendedchainofesportsbroadcasting.In2015,helaunchedPandaTV,anesportsstreamingchannel,tocompetewithTwitch.Healsomadeeffortstopushforwardunifiedstandardsforleaguecompetition.Followinghislead,otheryoungChinesewealthybusinesspeopleandentertainmentcelebritiesalsoinvestedinesportsteamsandrelatedbusinesses.
OneofthemispopsingerJayChouinTaiwan,China.AsadedicatedenthusiastofLeagueofLegends(LOL),hehashisownteamandinvested18millionyuan($2.8million)tobuilda1,700-square-meteresportsbarinShenzhen,southChina鈥檚GuangdongProvince.
Theinfluxofinvestmentsandthegrowingpublicawarenessonesportsasamainstreamentertainmentsectoraugerwellforitslongtermprogress.ChineseInternetanalyticsfirmiResearchreportedthatthemarketvalueofChina鈥檚esportshit65billionyuan($10.3billion)in2017,anincreaseofnearly60percentyearonyear.
Chinaisalsocontributinggreatlytoesportsplayernumbersintheworld,saidNewzoo.The2017StatisticalReportonInternetDevelopmentinChinareleasedbyChinaInternetNetworkInformationCentershowedthat420millionoutof751millionChineseInternetusersplayedcompetitivegamingin2017.鈥淕rowingupintheeraoftheInternet,peopleborninthe1980s,1990sand2000sacceptesportsasanaturalphenomenon,鈥漵aidDingDong,formerDirectorofSportInformationDepartmentwithChina鈥檚GeneralAdministrationofSport(GAS).VisitorstesttheirgamingskillsatanesportsexhibitioninShanghaiDATAGlobalEsportsinNumbers
GlobalEsportsRevenueGrowth
GlobalEsportsAudience(million)
TotalAudienceGrowthRate(y.o.y)
Agaminganchorforalivestreamingchannelcommentsonaprofessionalesportsevent420million
outof751millionChineseInternetusersplayedcompetitivegamingin2017
$10.3billion
China鈥檚esportsmarketvaluein2017
Supportingpolicies
Recognitionofesportsasanofficialeventandsupportfromthegovernmenthaveluredventurecapitaliststothesector.ItwillbepartoftheprogramattheAsianGamesinDjakarta,Indonesiathisyear,andalsoamedaleventatthe2022AsianGamesinHangzhouofChina.Inlate2017,theInternationalOlympicCommitteeofficiallyagreedtoaddprofessionalgamingcompetitionstotheOlympicsprogram.
鈥淓sportsshouldbeaglobalprofessionalmedaleventduetoitsnatureofsportsmanship,andspectatorshipandbecauseitisanintellectualconfrontationthattestspeople鈥檚agility,intelligenceandwillpower,鈥漵aidJinYibo,headofChineseInternetgiantTencent鈥檚esportsbusiness,addingesportsrequiresthesameintensepreparationandtrainingasthatoftraditionalsports.
In2016,Chinaintroducedaseriesofpoliciestosupportesportssector.InMarch,theGASheldanationalChinaMobileE-SportsGames.InApril,theNationalDevelopmentandReformCommissionissuedanactionplantopromoteeconomicrestructuringthroughconsumption,whichclearlyencouragedbusinessestohostnationalandinternationalesportsevents.
Theseinitiativestriggeredthezealofcapitalforthesector,withJDandSuningCommerceGroupinvestingheavilyintheesportsbusiness.InDecember2017,thetwogiantswonberthsforLOLProLeague,China鈥檚topnationalesportsevent,atthecostof90millionyuan($14.2million).Insiderssaywinningtheberthsmeansthebusinessescouldsharetheconsiderablerevenuesfromsponsorships,advertisingandmediarights.
鈥淭hecommercialpotentialisnotonlyaboutholdingleaguecompetitionsortournaments,butalsoaboutawholeindustrialchain,鈥漵aidJin.Heestimatedthevalueofthesectorwillreach100billionyuan($15.8billion)inthenextfewyears,withadditionalmultiplesourcesofrevenuescomingfromgamepublishing,livestreamingplatformsandgamingperipherals.
Fromthestatelevel,China鈥檚policyoffosteringcharacteristictownsnationwidesetalong-termbrightfutureforesports.Byvirtueofthepolicy,esports-themedtownsattractingrelatedbusinessesandcompletetrainingfacilitiesarebeingbuilttonurtureprofessionalplayersandtappingintothecommercialpotentialofofflineestablishments.
鈥淲iththesechangesandsupport,Iamconfidentthatmyfuturecareerisextremelybright,鈥漵aidTan.
Africa鈥檚calling
AccordingtoNewzoo鈥檚report,improvingITinfrastructureandurbanizationaredrivingthegrowthofaudiencesandawarenessofesportsinAfrica.ThoughesportsisafledglingindustryinAfrica,youngAfricanbusinesspeopleareshowinggreatinterestingamingbycreatingtitlesinspiredbyAfricanmythology,styleandhistory.
KenyanGeorgeAhereisoneofthem.AfterfinishinghisfouryearsoftwareengineeringmajorataChineseuniversity,hewentbackhomeandstartedagamedevelopingfirmin2016.HiscompanyrecentlyreleasedadebuttitleMzitoformobiledevices,currentlythebestwaytoreachthebiggestaudienceonthecontinent.鈥淟oweringpricesandimprovedInternetconnectivityhaveledtoaboominsmartdevices,鈥滱heretoldgamesinsudtry.biz.
TheEricssonMobilityReportreleasedin2015predictedthatby2020,70percentofAfrica鈥檚populationwouldhavesmartphones;and90percentofthecontinent鈥檚populationwouldhaveaccesstomobileInternet.ThesestatisticsaredrivingAhere鈥檚vision,andheispreparedtoseizetheopportunitybeingpresentedinapredictedboomofthegamingindustry.
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