SuperData Projects Gaming Videos Will Earn $4.6 Billion In 2017

Posted on April 27, 2017 - Last Updated on July 13, 2023

A new report from the market research company SuperData projected gaming content from streaming platforms will generate $4.6 billion in revenue this year. Websites like Twitch and YouTube have been steadily expanding their fans in the recent years. This increase is in line with the overall growth of the esports industry.

Gaming video content highly attractive to advertisers

The market for live and on-demand esports content has become more competitive recently.

As advertisers realize the potential of reaching millennials, these companies are willing to put more money into the industry.

“‘Gaming Video Content’ represents a highly desirable market to advertisers due to the fact that its audience is young, tech-savvy, and willing to spend money,” explained SuperData Research Manager Carter Rogers. “Companies who do not advertise to GVC viewers risk missing potential customers as they turn to streams over legacy media. With a global audience that reaches more viewers than HBO, Netflix, ESPN, and Hulu combined, brands could be losing out on the next prime-time viewing activity, not unlike TV or sports viewing at their peaks.”

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Gaming content enthusiasts are growing in number

The worldwide audience for esports-related content has grown to 655 million, and advertisers and marketers are willing to go the extra mile to reach this consumer group. Because gaming content is on the rise, companies are jumping on the esports train to capitalize on its development.

According to SuperData, the average PC and console gaming enthusiast who regularly watches Twitch or YouTube spends more than $70 per month on digital games, in-game content, and related items. That’s 56 percent more than gamers who don’t watch Twitch or YouTube.

That being said, it comes as no surprise to see media companies going all-in to capture this audience. Of the $4.6 billion SuperData expects gaming-related content to net in 2017, $3.2 billion is forecasted to come from advertising and sponsorships alone. The remaining share of the total is attributable to viewers directly. These fans are spending an increasing amount of money on subscriptions and donations for their favorite creators.

Esports streaming market becoming more competitive

As can be expected, more lucrative business will attract more players to the market. And with such a responsive and engaged crowd, the gaming content market is becoming more crowded. The days when Twitch was the only game in town are fading away. YouTube and Facebook have both shown interest, and Azubu, another US contender in the field, is also beefing up its presence.

However, this does not mean Twitch is resting on its laurels. The Amazon-owned company has consistently added new features, and the latest addition (as reported recently) included new subscriber options.

Facebook recently introduced new services to compete with Twitch. The company is looking to capitalize on the growth of the streaming business.

In line with other players, YouTube is also making sure its market share is growing in the industry. By entering new partnerships, the company is seeking to grow organically within the streaming and broadcasting esports industry.

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Dejan Zalik

Dejan has been involved in gaming for over 10 years. Moving from classics like Diablo 2, Lineage 2, and Warcraft 3, he found his passion in Dota 2, which he’s been playing ever since. He also likes to keep up to date by reading and writing about whatever is happening in the industry.

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