PETER WARMAN

CEO, NEWZOO

PeterWarman
China Entertainment & Digital Congress

Shanghai, August 1 2020

 – Shenzhen in 2017

© Newzoo 2020 2
 – Chengdu in 2018

© Newzoo 2020 3
 – Hainan in 2019

© Newzoo 2020 4
 We have the expertise and With 90 staff, we serve all Across practically every
were the first market time zones out of our market, we serve the
intelligence firm in the world offices in San Francisco, biggest brands and most
to report on esports in 2013. Shanghai and Amsterdam. innovative companies.

© Newzoo 2020 5
 Game Hardware Telecom Media, Finance
Development & Gaming & Mobile Sports &
& Publishing Peripherals Services & Brands Consulting

© Newzoo 2020 6
A great responsibility

7
 – Making people happy as world’s #1

TIME MONEY

HOURS REVENUES

PEOPLE

© Newzoo 2020
 – Creating the world’s biggest sport

TIME MONEY

HOURS REVENUES

PEOPLE

© Newzoo 2020 9
 China will account for
OCCASIONAL VIEWERS

ESPORTS ENTHUSIASTS 37%

of Esports Enthusiasts in
2020

37% 37%

2020
CHINA

15% 11%

CHINA EUROPE NAM REST OF WORLD

© Newzoo 2020 Source: 2020 Global Esports Market Report 10

 China will generate

$344M
in 2020, or 35% of global esports
revenues

18%

35%

2020 23%

24%

CHINA EUROPE NAM REST OF WORLD

© Newzoo 2020 Source: 2020 Global Esports Market Report 11

On gaming and esports

12
 – Engagement with games is up 50%+

Peak

European Stay-at-
230K Viewers
Home
Orders Begin

LIVE STREAMS ON

Source: Newzoo Analytics Platform - Viewership

Source: Newzoo Platform

© Newzoo 2020
 – Games are social meeting points

Of all gamers in the US,

Socializing is at the heart
Japan and Italy aged
of games and platforms
between 10 and 30

17%
Plays more because
games are a means to
More time

Socialize

Location
Escape

Family
Source: Newzoo Consumer Insights
© Newzoo 2020 14
 - Live events and business models disrupted

Of big live esports events

planned for this year,
over

70%
has changed their plans
and moved online, will be
played without fans or
are even cancelled
completely

© Newzoo 2020 Source: 2020 Global Esports Market Report 15

 – Merch & ticket sales down, sponsorships slow

2020 Total Esports Year-on-year decline in

Revenues merchandise & ticket revenues
+1.7% YoY $76M in 2020

BMW makes a global move

Source: 2020 Global Esports Market Report

© Newzoo 2020 16
 – Variety in media rights deals

Exclusive Media Rights Media Rights in Tiers

$116M/3YR
2020-2023

Source: 2020 Global Esports Market Report

© Newzoo 2020 17
 – Making the most of travel restrictions

China South Korea Hours Watched

Million
2,5
Mid Season Cup
7M

Millions
The 2020 Mid-Season Cup (MSC 2020) is Hours Watched
organized as part of the 2020 Mid-Season 2
Streamathon replacing MSI 2020. Similar to
Rift Rivals of previous years, the top four
teams from both LPL and LCK participate
online respectively. 1,5

0,5

© Newzoo 2020 Source: Newzoo Platform 18


FIFA 20
Ibai Llanos, an ex League of Legends
commentator, has asked a player of each
La Liga team to represent their team.
After a successful first test between 2
teams, all other teams and respective
players signed up for the tournament.
(Exception: Monaco = PES 2020 Partner)
© Newzoo 2020
– accelerated by Covid
F1 2019
To “enable fans to continue watching
Formula 1 races virtually, despite the
ongoing Covid-19 situation”, Formula 1
launched the Virtual Grand-Prix Series.
Professional drivers and streamers
continue to compete on Codemaster’s F1
2019 for entertainment only.
Source: 2020 Global Esports Market Report
FIFA 20
The MLS just started their month-long
tournament in order to, like many other
leagues and broadcasters, fill
programming space. The MLS
tournament includes a wide range of
both professional athletes and FIFA 20
Global Series esports players.
19
 – against Covid

With streamers and esports athletes becoming bigger and more During the current lockdown, many streamers and celebrities
well-known, matching up traditional celebrities with streamers to have done Covid-19 charity streams, in most cases with
play has become more and more popular. For charity or fun. better results than initatives on traditional media.

Source: 2020 Global Games Market Report

© Newzoo 2020 20
 – against Covid

$4.3M
Douyu, headquartered in Wuhan, organized a
livestreaming shopping event on the platform
after the COVID-19 outbreak in China, in which
Douyu’s top streamers and several esports
teams promoted items produced in Hubei
Province to help boost the local economy of
Hubei after the crisis. In total, the campaign
generated $4.3 million sales with 809K items
sold. Number of accumulated viewers reached
34 million across China.

Source: 2020 Global Esports Market Report

© Newzoo 2020 21
China leading the way

22
 – powered by Chinese studios

COIN MASTER – MOON ACTIVE ARCHERO – HABBY COD MOBILE – ACTIVISION/

CASUAL CORE →
→ CORE CASUAL

© Newzoo 2020 Source: 2020 Global Games Market Report

 – powered by Chinese titles

1 India 31% 1 India 62%

2 Indonesia 13% 2 Turkey 9%

Out of 100M
3 Brazil 10% 3 Russia 8% PUBG Mobile Lite
downloads in
April 2020,

1 Indonesia 28% 1 Indonesia 40%

62%
were from India
2 Brazil 21% 2 Philippines 13%

3 Turkey 7% 3 Brazil 8%

© Newzoo 2020 Source: Priori Data | Newzoo’s Monthly Active Mobile Device Data 24
 – finally taking off

Total Esports Hours Watched

2018 vs. 2019 | Twitch & YouTube
PUBG Mobile 37.9M
Garena Free Fire
Mobile esports Mobile Legends: Bang Bang 31.4M
hours watched on Arena of Valor

Youtube and
Twitch grew

10X 17.8M

In 2019 versus 2018 5.7M

10.8M

3.3M

0.4M 0.3M

© Newzoo 2020 Source: 2020 Global Esports Market Report 25

Location is important

26
 – All over the world

© Newzoo 2020 Source: 2020 Global Esports Market Report 27

 – World finals hotspot

2019

Shanghai Population: 25M

2020
With the industry efforts from various
esports related companies and
multiple supporting policies across
the city. Shanghai has established
itself as a leading esports city both
domestically and internally.

#1 As a result of that, two most

important esports events – Dota 2 Ti9
Largest Chinese city by
urban area inhabitants League of Legends Worlds Final
Championship chose Shanghai as the
major hosting city to embrace more
esports audience in China.

© Newzoo 2020 Source: 2020 Global Esports Market Report 28

 – More viewers than gamers

2019
2018
99M
Consumers worldwide tuned in
for the World Championship of
League of Legends end of 2019.
IG won the 2018 Championship
and FunPlus Phoenix in 2019.

BEIJING, CHINA

© Newzoo 2020 Source: 2020 Global Esports Market Report 29

And how Newzoo can help

30
 – Supporting global cooperation

HAINAN RESORT SOFTWARE

COMMUNITY (RSC) AND NEWZOO
AIM TO JOINTLY SUPPORT AND
ACCELERATE THE BUSINESS
EXCHANGE BETWEEN CHINA
AND OVERSEAS MARKETS IN THE
FIELD OF GAMING, MEDIA AND
TECHNOLOGY.

- RSC / Newzoo Partnership

© Newzoo 2020 31
 PLATFORM
The single destination for
anyone with an interest in
games. Broad and market-
specific solutions including
our landmark reports.
© Newzoo 2020
CONSUMER INSIGHTS
The best way to understand
consumer engagement and
profile your target group,
including our persona
segmentation.
CONSULTING
Custom projects that put
our experience and
expertise to work on
strategic and financial
challenges.
32
 – game profiles & performance

PLATFORM

The single destination for

anyone with an interest in
games. Broad and market-
specific solutions including
our landmark reports.

© Newzoo 2020 33
 – market profiles & growth

PLATFORM

The single destination for

anyone with an interest in
games. Broad and market-
specific solutions including
our landmark reports.

© Newzoo 2020 34
 – New: PS & Xbox console game tracking

PLATFORM

The single destination for

anyone with an interest in
games. Broad and market-
specific solutions including
our landmark reports.

© Newzoo 2020 35
 – Esports ecosystem from all angles

PLATFORM

The single destination for

anyone with an interest in
games. Broad and market-
specific solutions including
our landmark reports.

© Newzoo 2020 36
 – Let’s work together

Newzoo esports team partnerships

PETER WARMAN
CEO, NEWZOO

PeterWarman

37

© Newzoo 2020 37
PETER WARMAN
CEO, NEWZOO

PeterWarman
China Entertainment & Digital Congress

Shanghai, August 1 2020