Analyst: Rising Esports' Young Viewing Will Hurt Traditional Media

Growing esports video viewing could cause big disruption and fractionalism of traditional media in the next few years, according to one media analyst.

Laura Martin, media analyst at Needham & Company, wrote that traditional media, including TV, radio and magazines, will see erosion of younger viewers 18-25 moving more to esports platforms.

These video games' competitions are where participants compete in front of a live audience, as well as being streamed. Esport competitions are also televised on a number of traditional TV networks.

Martin, in speaking to CNBC on Thursday, said significant cannibalization will occur in the next three to five years. It will come from young gamers playing -- and watching -- competitions.

“One of three kids under the age of 25 is spending an hour a day playing video games. And for every hour you play, you are watching another hour,” she said.

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Prize money competition continues to grow. A recent winner of the first Fortnite World Cup competition won $3 million. Martin also says there are “a hundred universities giving varsity scholarships to go to college by playing video games. And they get to keep their winnings.”

Estimates are that streaming and other viewing of esports totals 450 million global viewers, says Martin.

It is not just traditional media that could be in danger of losing audiences -- but also existing and new OTT digital video business. “It’s a problem for all these over-the-top services,” she says.

If that isn’t enough, she adds, growing legalized sports gambling in many states could add to more esports playing and viewing.

3 comments about "Analyst: Rising Esports' Young Viewing Will Hurt Traditional Media".
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  1. Ed Papazian from Media Dynamics Inc, August 30, 2019 at 12:20 p.m.

    Wow! Wayne, this could be the final blow that will topple traditional media once and for all. Everybody knows how inportant the 18-24s are to TV----they are the mainstays of the broadcast networks and cable in terms of audience attainment, right?---and radio, except for the 25+ "demo", which tops them in listening time, how can radio survive the loss of its 18-24 " base"?And print media---well this probably is curtains for newspapers and many magazines? Of course I'm kidding but why can't these analysts just tell their little stories without the drama and hype of the first sentance in your article---which, I assume, reflects what the analyst wrote---" Growing esports viewing could cause big disruption and fractionalism of traditional media in the next few years". Sure it could---or maybe not.

  2. John Grono from GAP Research replied, August 30, 2019 at 6:22 p.m.

    Thanks Ed.   You saved me the trouble.

  3. Dan C. from MS Entertainment, September 1, 2019 at 6:48 a.m.

    The disruptions started many years ago.  The esports viewing audience, and gamertainment as I like to call it, has been significant for roughly the past 5-7 years.  So the observation is very late to say the least.

    "It is not just traditional media that could be in danger of losing audiences -- but also existing and new OTT digital video business. “It’s a problem for all these over-the-top services,” she says." 

    To this, I would suggest that you are out of touch with the audience and the observation is meritless.  The esports audience shares media and content like no other generation and has helped to perpetuate binge watching.  They don't have patience for linear TV (she got this right) and all of the interruptions - and quite frankly, neither does my 78 year old father - who does?  However, on-demand and platforms like Netflix are benefitting as the gaming audience in particular shares and discusses a ton of content - especially OTT platforms.

    Regarding how gambling is going to help grow the audiece and perpetuate disruption, I could not disagree more, but that's a whole other can of worms.

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