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Esports and gaming have burst into the mainstream in recent years, transforming from a vibrant niche to a central form of entertainment around the world. While esports may have once stood for a subset of sports culture, it has grown into a full industry in its own right.
That shift has been powered by championing from mainstream celebrities like Michael Jordan, Drake, and DJ Marshmello, an increasing amount of coverage from traditional outlets like ESPN, and, at least in part, the breakneck rise of Fortnite.
As competitive gaming cements itself in the popular culture, global investors, brands, media outlets, and consumers are all paying attention. Total esports viewership is expected to grow at a 9% compound annual growth rate (CAGR) between 2019 and 2023, up from 454 million in 2019 to 646 million in 2023, per Business Insider Intelligence estimates. That puts the audience on pace to nearly double over a six-year period, as the 2017 audience stood at 335 million.
The pop-culturization of esports has helped power the explosions in esports investment and revenue. Esports has hit this stratosphere in large part because of the social component of live streaming and gaming. Gaming-specific streaming platforms like Twitch and YouTube Gaming give fans a direct connection to the players and teams, while more mainstream socials have allowed those connections to flourish. Certain esports organizations, like FaZe Clan, are also moving aggressively into areas like merchandise, lending their brands more notoriety than if they’d stuck to esports alone.
Rick Yang, partner at NEA — a venture capital firm that invests in esports — underscored this in a conversation with Business …read more
Source:: Business Insider