Are you looking to invest in esports, the competitive world of video games? The industry is ripe with opportunity. Revenue is expected to top one billion dollars this year alone.
Two areas investors should consider are streaming services and sponsorships.
Let's begin with streaming. Amazon (AMZN) - Get Amazon.com, Inc. Report , Google's Alphabet (GOOGL) - Get Alphabet Inc. Class A Report and Activision (ATVI) - Get Activision Blizzard, Inc. Report are the companies leading the pack.
Activision, alone, has attracted sports industry titans including Kraft Group LLC , the Los Angeles Rams co-owner Stan Kroenke's Kroenke Sports & Entertainment LLC; Comcast Corp. (CMCSA) - Get Comcast Corporation Class A Report , and more. Activision's Overwatch League has also been able to attract investors, and has allowed them to develop a long-term strategy around the franchise.
Amazon's video streaming platform, Twitch, also agreed to pay $90 million in total over a two-year period to stream Overwatch League games.
Leagues have drawn more and more venture capitalists, private equity firms and individual investors into the space, which has offered high-profile backers to many of the participating teams, improved the production quality and created a fertile ground for top brands and sponsors to get involved.
Meantime, advertising and sponsorship are the bulk of eSports' total market revenue according to research firm Newzoo. Experts say it could top $650 million by the end of 2019.
Here are some of the top brands leading the advertising and sponsoring eSports:
- Coca-Cola (KO) - Get Coca-Cola Company Report
- HP (HPQ) - Get HP Inc. Report
- Intel (INTC) - Get Intel Corporation Report
- Mountain Dew (PEP) - Get PepsiCo, Inc. Report
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