The Expansion of Gaming and Its Cross-Media Potential

The media business is measured and driven by minutes of attention and the $100 billion gaming industry is a growing competitor for audience share.  View the trajectory of this growing business, expansion of markets and the increasing intersection of gaming, game technology and the opportunities it provides for broadband value, pop culture, TV and film.

Gaming Webcasts, Blogs & Podcasts

CTAM Wired Webcast Recording: Games as a Relationship

*Available to CTAM members only.

Best Option for TV Properties: Console/PC vs. Mobile Games

Ways of Monetizing TV Properties in the Gaming Marketplace

View the full CTAM Wired Webcast: Gaming’s Cross-Media Potential

CTAM Think speaker Matthew Ball Podcast

“Rovio on Tomorrow – The Metaverse and More”

“It’s hard to talk about gaming in 2021 and not come across references to the Metaverse. Fortnite, Roblox and Minecraft can all lay claim to be building it (in their own way) with many others trying to get in on the action. Who will be the first to successfully build The Metaverse is a question ripe for discussion and few have spent more time thinking about it than Matthew Ball.”

Matthew Ball’s Blog: Published in ‘The Economist’

My Blog for ‘The Economist’: The Rise and Rise of Video Games

Covid-19 has drawn renewed attention to an under-appreciated industry.

Global console, mobile and PC gaming drives $175B in content revenue in 2020

Global gaming software and services revenue grew 21.6% to an estimated $174.53 billion. Mobile led the way, with nearly $100 billion in annual revenue accounting for 57.2% of the market.

Source: Kagan, a media research group within S&P Global Market Intelligence

Gaming Usage and Growth  Statistics

  • Video game revenue grew 20% YOY to $118B, more than Hollywood and pro sports combined. (Magid, CTAM Wired Webcast)
  • Combined mobile, PC and console gaming software and services revenue totaled $175 billion in 2020. Gaming console hardware drove another $13 billion. (Kagan, a media research group within S&P Global Market Intelligence)
  • The market was on a steady incline and jumped in 2020 due to pandemic-driven demand. (Kagan, a media research group within S&P Global Market Intelligence)
  • Gaming is currently bigger than the global box office, which averages $40B annually in non-pandemic years. (Kagan, a media research group within S&P Global Market Intelligence)
  • While gaming holds its own as a revenue driver, video still outweighs gaming in engagement when it comes to time spent viewing (4.5 hours a day for video vs. 1.5 hours per day for gaming). (Kagan, a media research group within S&P Global Market Intelligence)

Question: How many hours do you spend on the following?

Base: 2,502 internet adults

Sources: Kagan U.S. Consumer Insights survey, Q3′ 2020

Kagan, a media research group within the TMT offering of S&P Global Market Intelligence.

© 2021 S&P Global Market Intelligence. All rights reserved.

  • 95% of Gen Z self-identify as gamers with 79% who actively game on a daily basis (Magid)
  • Not surprisingly, younger generations are more into gaming than older generations; however, Millennials saw the greatest increase in time spent gaming during the pandemic, even though they are now ages 20-40’s. (Kagan, a media research group within S&P Global Market Intelligence)

Question: How many hours do you spend on the following?

Base: approximately 2,500 internet adults per survey wave

Sources: Kagan U.S. Consumer Insights surveys

Kagan, a media research group within the TMT offering of S&P Global Market Intelligence.

© 2021 S&P Global Market Intelligence. All rights reserved.

  • Over two-thirds (68%) increased gaming hours during the pandemic, with 72% of ages 30-45 doing so, and 43% expect to further increase their time on games post-pandemic. (Magid, CTAM Wired Webcast)
  • Over half (56%) of frequent gamers played multiplayer games and spent an average of seven hours a week playing with others online. (The Entertainment Software Association)
  • Gamers play to be social (unlike any other media), watching live streaming games regularly and communicating with the game community regularly. (Magid, CTAM Wired Webcast)

Gaming PC & Consoles

  • Globally, there are around 250M gaming consoles installed with 40% of them in the U.S.
  • In past year, console vendors have struggled to keep up with demand, largely due to the pandemic.
  • Nintendo Switch was able to ship more TV capable consoles than ever before in 2020.
  • Despite the fact that COVID created software supply limitations and shipping complications, 280M consoles are expected by 2025.

(Kagan, a media research group within S&P Global Market Intelligence)

Mobile Gaming

  • It was estimated that by the end of 2020, mobile game revenues would hit $76.7 billion, a 12% increase from 2019, which alone is more annual revenue than the music and film industries combined. (Newzoo, a prominent esports analytics company)
  • In Q1 2020, the number of mobile gamers grew from 1.2 billion people to 1.75 billion per month, which represents an increase of 46% (Game Analytics).
  • Even without having one’s own app store, revenue is around $1B in mobile app games (Kagan, a media research group within S&P Global Market Intelligence)
  • While mobile gaming is not currently a huge revenue driver, it’s creating value by strengthening the brand marketing (e.g. choreographed release campaigns that help boost all revenue in different channels) (Kagan, a media research group within S&P Global Market Intelligence)

Cloud Gaming

  • It’s not anticipated that cloud gaming will replace mobile and PC, but there is growth potential in the future.
  • Manufacturing consoles is a low margin business, so there are benefits from cloud gaming, with larger revenue from software. However, with cloud gaming, console makers risk losing control of the ecosystem, which can cut into the value/revenue of the console and its ecosystem/ offerings (e.g. streaming services)
  • Consumers have mixed reactions to Cloud Gaming rollouts (e.g. Google Stadium), as the Internet quality and Wi-Fi low latency can lead to poor visual and slow response.
  • Network owners (MSOs and ISPs) have an opportunity to get involved with cloud gaming to improve the quality, or even through launching their own gaming services, which could result in a new revenue stream, as well as revenue bundles to broadband subscribers.

(Kagan, a media research group within S&P Global Market Intelligence)

Esports

  • Global gaming revenue was expected to hit $159 billion by the end of 2020. (Newzoo, a prominent esports analytics company)
  • The global esports betting market is expected to be worth up to $15 billion, compared with less than $6 billion in 2016. This explosive growth has been fueled by online advertising, which almost tripled during lockdown. (GambleAware Survey partnered with the University of Bristol, UK)
  • The average age for esports spectators is 26. (GambleAware Survey partnered with the University of Bristol, UK)
  • 22% of the Internet population participates in esports. (Newzoo, a prominent esports analytics company)
  • During the widespread cancellation of traditional sports during 2020, many viewers turned to virtual versions as a substitute. (The Boca Raton Tribune)
  • Fortnite alone has around 78 million monthly players and professional tournaments draw in many millions of online spectators. (The Boca Raton Tribune)
  • League of Legends World Championship attracted over 100 million viewers in 2019 with a peak of 44 million. (The Boca Raton Tribune)
  • Esports Trends to Watch in 2021:
    • Significant shift in brand advertising
    • Convergence of esports with mainstream sports
    • Growth of esports in popular culture
    • Increased fragmentation and evolution
    • Increased participation in the ecosystem

View full article here. (The National Law Review)

Esports Excerpt

Provided by Seth Schafer, Kagan, a media research group within S&P Global Market Intelligence

Esports is still far from mainstream as a relatively low percentage of Kagan Consumer Insights survey respondents in most countries watch or participate in esports on a regular basis, but it is also far from a passing fad. I think we’re seeing that carry through to game sales for popular series like CS:GO, Dota and Fortnite, as well as the success of franchising competitions like Overwatch.

A lot of the interest from advertisers, sponsors, and franchise owners in esports isn’t so much about the content or focus itself, but more the ability to reach enthusiastic, engaged viewers that typically skew young and may not be tuning into traditional TV the same way that older viewers still are. That will likely continue to be important moving forward as esports both inches more into the mainstream and broadens its base a bit to support more social, general-interest activities in the way the Twitch platform and community has evolved.

The Impact of COVID on Gaming

Discover the impact that the pandemic has on TV viewing and behaviors including hours watched, preferred content, changes in pay-TV subscriptions and streaming service adoption in CTAM’s COVID-19 Resource page.
  • Over half (56%) of frequent gamers played multiplayer games and spent an average of seven hours a week playing with others online. (The Entertainment Software Association)
  • 55% said that this form of social gaming helped them stay connected with friends during the COVID-19 pandemic. (The Entertainment Software Association)
  • The gaming market was on a steady incline and jumped in 2020 due to pandemic-driven demand. (Kagan, a media research group within S&P Global Market Intelligence)
  • In past year, console vendors have struggled to keep up with demand, largely due to the pandemic. (Kagan, a media research group within S&P Global Market Intelligence)
  • According to Verizon, overall video-game internet traffic increased 75% when COVID restrictions were imposed in America last spring. (Matthew Ball’s Gaming Blog – ‘The Economist’).
  • The global esports betting market is expected to be worth up to $15 billion, compared with less than $6 billion in 2016. This explosive growth has been fueled by online advertising, which almost tripled during lockdown. (GambleAware Survey partnered with the University of Bristol, UK)
  • Bungie, a video-game developer, says that average daily user engagement on their game “Destiny 2” was up 10% worldwide and as much as 20% in the markets most affected by the coronavirus. (Matthew Ball’s Gaming Blog – ‘The Economist’).
  • (Ndemic Creations’ “Plague, Inc”), a mobile game in which the user assumes the position of a deadly pathogen, became the bestselling app in China during the outbreak. (Matthew Ball’s Gaming Blog – ‘The Economist’).
  • Steam, a leading online retailer of video games, hit a peak of 20.3m concurrent players, 11% above the previous high. (Matthew Ball’s Gaming Blog – ‘The Economist’).
  • Twitch, which allows gamers to live-stream videos of their game-play, has seen its average viewership more than double. (Matthew Ball’s Gaming Blog – ‘The Economist’).

Gaming Articles

7 Reasons Why Gaming IP Is Finally Taking Off in Film/TV

After decades of fan petitions and dreams, it’s clear that video game publishers, Hollywood, and general audiences are finally ready for gaming IP to be adapted to film and TV. Why now and what does this mean?

Source: CTAM Think Speaker, Matthew Ball

Top Mobile Gaming Trends for 2021

Arm gaming experts review independent analysis of market shifts and outline the “Magnificent Seven” top mobile gaming trends for 2021, from 5G and augmented reality to cloud gaming.

Source: Arm

7 Reasons Why Video Gaming Will Take Over

It’s replicating the most lucrative entertainment businesses on earth… and then adding a lot more.

Source: CTAM Think Speaker, Matthew Ball

Hollywood’s Video Game Blind Spot

As Hollywood empties its bank accounts for more TV and film assets, it continues to ignore the most ascendant media category. And it can’t afford to do so much longer.

Source: CTAM Think Speaker, Matthew Ball

Other Articles: