Joost van Dreunen: The Competitive Gaming Opportunity

THE COMPETITIVE GAMING OPPORTUNUTY, FEBRUARY 2017 | © 2017 SuperData Research. All rights reserved.

February 16, 2017 Prepared for A-List Summit, Los Angeles

Analyst Perspec@ve:

The Compe@@ve Gaming Opportunity


Image credit: Red Bull

EVO 2016 ELeague CS:GO Major


144,000 147,000 EVO 2016 ELeague CS:GO Major

Image credit: Red Bull. Source: The Next Level.

4

JOOST VAN DREUNEN CEO & co-founder

@joosterizer

4

WATCH PLAY BUYViewing gamer

audienceAc0ve gamer

universeGamer

spending

Data Digital Video Consumer Behavior Transac@on-level

Metric Unique Viewers Monthly Ac@ves Revenue per Player

KPIs Reach Sessions, Purchase Intent, Mindshare

Spending, Rankings

5

Level of Engagement

Data-driven offering built on informa@on collected across relevant consumer touchpoints.SuperData’s perspec;ve on next-gen entertainment.

6

Selected customers

77

SuperData approach to eSports industry

Teams

Publishers

Consumer Data

PlaHorms Logins

Play-@me

Merchandise Ticket Sales

Streaming Data Fanbase

Viewership

8

Q: How big is the opportunity for compeOOve gaming?

8

99

Watch but don’t play

Play but don’t watch

Watch + Play

83.6M 146.7M

eSports: biggest opportunity lies in its reach.Just over half of all monthly ac@ves also watches others play games online.

123.5M

1.1BWorldwide audience for Gaming Video Content

eSports Viewing Audience

Life-Cycle of the eSports Industry: 2007–2025E

$1B

$2B

2007 2014 2017 2020 2025

THE COMPETITIVE GAMING OPPORTUNITY, FEBRUARY 2017 | © 2017 SuperData Research. All rights reserved.

10

Emergent behavior

1

2


$1B

$2B

2007 2014 2017 2020 2025


11

💀

Amateur Circuit

Valley of Death

1

12

$7.1B UNBOXED

Entertainment is shiXing2015 Revenue for US entertainment markets Ranked by size in GBP (£) billions, CAGR: 2005-2015

Source: Mo@on Picture Associa@on of America, Recording Industry Associa@on of America, Na@onal Cable & Telecommunica@ons Associa@on, and the Newspaper Associa@on of America.

Cable TV 47 -0.10%

Broadcas@ng TV 34 -0.62%

Video Games 19 +7.87%

Newspapers 17 -8.19%

Radio 14 -1.10%

Magazines 13 -6.77%

Film Box Office 9 +1.74%

Music 7 -4.76%

12

2 3


$1B

$2B

2007 2014 2017 2020 2025


13

Growth

PopularizaZon Investment

IrraZonal Exuberance M&A

1

14

“The average age of a NBA, MLB, or NHL season Ocket holder is probably in its 50s. Not probably. It is!”—Andy Miller, NRG eSports

14

15

TradiZonal sports audiences decline

1984 1994 2004 2014

MLB World Series audience: 1984—2015 Millions of viewers

Source: MLB.

37M

15M

The average age of a baseball viewer is 53.

15

16

Q: Will AcOvision eventually negoOate with CBS over sports-licensing fees for people to watch AcOvision games?

“Absolutely.”

Source: Adweek.

16

2


$1B

$2B

2007 2014 2017 2020 2025


17

Slope of Reality

Growth

31

18

Source: Fusion Media Network.

“Right now it’s a gold rush to buy and sell and build teams. That’s creaOng a confused market.”

18

2


$1B

$2B

2007 2014 2017 2020 2025


19

Whoa!!

Business Model Ra@onaliza@on

431

2 4


$1B

$2B

2007 2014 2017 2020 2025


20


ConsolidaZon Shake out

Pros vs Joes31

2


$1B

$2B

2007 2014 2017 2020 2025


21


ConsolidaZon Shake out

Pros vs Joes431

2


$1B

$2B

2007 2014 2017 2020 2025


23

Maturity & Ascendance

5431

24

Video the next fronZer

Channel Subscribers (Millions)

Music 94

Games 77

Sports 75

Movies 44

News 33

TV Shows 11

Live 2

360 Videos 1

Source: YouTube.

24

25

Channel compeZZonChannel distribuOon: Gaming Video Content vs. eSports Cumula@ve results, n=3,682 qualified respondents

TwitchYouTube

YouTube GamingFacebook

MLGUstream

ESL.tvPlay.tvAzubu

Dailymo0on GamingDingIt

HitboxMobCrush

KamcordPlaysta0on SharePlay

Other

Source: SuperData Player Profile. August 2016, United States.

26

Media economies of scale

26

$175B

$132B

$75B

2727

AuthenZcity is the currency

28

Boys clubGender distribuOon by channel Cumula@ve results, n=3,682 qualified respondents, US

FacebookPlaysta@on SharePlay

GamingLiveYouTube

YouTube GamingUstream

Dailymo@on GamingDingItPlay.tv

MobCrushTwitchAzubuHitboxESL.tv

MLGKamcord

FemaleMale

Source: SuperData Player Profile.

29

Audience profiling and programmingAge distribuOon for major eSports Otles Cumula@ve results, US audience

13 to 17 18 to 24 25 to 34 35 to 44 45 to 54

Call of Duty SeriesCounter-StrikeDota 2League of LegendsHearthstone


30

Overwatch demographicsAudience age breakout and gender distribuOon United States, Overwatch compared to Shooter Genre average

> 18

18 to 24

25 to 34

35 to 44

45 to 54

55 to 64

65+Male

Female

Overwatch Shooter-genre average 64%

36%

83%

17%


Summary

Addressable audience for compeZZve gaming at 234 million people in 2017E. Publishers are acZvely pursuing a strategy focused on generaZng ad revenue. eSports industry enters a period of Business Model RaZonalizaZon. Accurate targeZng and authenZc brand messaging miZgates the risks inherent in

an early, volaZle market.

31

32

THANK YOUJOOST VAN DREUNEN SuperData Research, CEO

@joosterizer

Joost van Dreunen: The Competitive Gaming Opportunity

Marketing

Transcript of Joost van Dreunen: The Competitive Gaming Opportunity