Market Insights Advertising & Media Esports

Media Rights - China

China

In 2024, the Media Rights market in China is projected to achieve a revenue of €46.1m.
It is expected to witness a compounded annual growth rate (CAGR 2024-2029) of 4.99%, leading to a projected market volume of €58.8m by 2029.
Amongst the top revenue generators, United States is anticipated to have a market volume of €69.0m in 2024.
Lastly, the average revenue per user (ARPU) is estimated to be 0.00.
In China, the Esports market has experienced a significant surge in media rights deals, with major broadcasters investing heavily in exclusive content.

Key regions: United States, Sweden, Asia, Europe, Germany

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Analyst Opinion

The eSports market in China has seen a minimal growth rate, impacted by factors such as media rights restrictions and the slow adoption of digital platforms. Despite this, the market is still expected to experience significant growth due to the increasing interest in eSports and its potential for revenue generation.

Customer preferences: As the eSports market continues to thrive in China, so does the demand for media rights. However, there has been a noticeable shift in consumer preferences towards streaming platforms and online content, as opposed to traditional TV broadcasts. This can be attributed to the increasing popularity of online gaming and the rise of younger, tech-savvy audiences. Additionally, the COVID-19 pandemic has accelerated this trend as more people turn to digital entertainment options while staying at home. As a result, media companies are investing heavily in online streaming rights and partnerships with eSports leagues and teams to cater to this growing demand.

Trends in the market: In China, the Media Rights Market within the eSports Market is experiencing a surge in live streaming platforms and partnerships between eSports leagues and traditional media outlets. This trend is driven by the increasing popularity of eSports in China and the growing demand for live content among younger demographics. As a result, eSports media rights have become highly valuable and are being sold at record prices, with major players like Tencent and Huya investing heavily in the market. This trend is expected to continue as China's eSports industry continues to grow and attract more mainstream media attention, providing new opportunities for industry stakeholders to tap into this lucrative market.

Local special circumstances: In China, the eSports market has seen tremendous growth due to the country's large and tech-savvy population, as well as the government's support for the industry. This has created a unique environment for media rights, as online streaming platforms such as Huya and Douyu dominate the market. Additionally, China's strict regulations on traditional media have led to a surge in online content consumption, making the eSports market a prime target for media companies. Furthermore, the country's rich heritage in gaming and competitive culture has also contributed to the success of the eSports media rights market, with events such as the League of Legends Pro League (LPL) drawing in massive audiences and attracting major sponsors.

Underlying macroeconomic factors: The Media Rights Market within the eSports Market in China is heavily impacted by macroeconomic factors such as the country's strong economic growth, supportive government policies, and increasing investment in the gaming industry. With a booming economy and a large population of tech-savvy consumers, China has become a major player in the global eSports market. Furthermore, the Chinese government has been actively promoting the development of the eSports industry, providing favorable regulatory environments and financial incentives for companies to invest in this sector. This has led to a significant increase in the demand for media rights within the eSports market in China, as well as the overall growth of the market. Additionally, the growing popularity of eSports among the younger generation and the increasing availability of high-speed internet and advanced gaming technologies have also contributed to the growth of the media rights market within the eSports market in China. These macroeconomic factors are expected to continue to drive the growth of this market in the coming years.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on the Media Rights market, which comprises revenues from ownership rights of media agencies. These include payments to industry stakeholders to secure the rights to show Esports content on a channel, payments from streaming platforms (e.g., Twitch) to organizers to broadcast their content, payments from foreign broadcasters to secure the rights to show content in their region, or the copyright costs for showing video/image content of an Esports competition. All figures are based on net revenues and exclude agency commissions, rebates, and production costs.

Modeling approach / market size:

The market size is determined through a bottom-up approach. We use annual financial reports of the market-leading companies and industry associations, third-party studies and reports, survey results from our primary research (e.g., Consumer Insights), as well as performance factors (e.g., user penetration, price per product, usage) to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country-specific industry associations, such as various macroeconomic indicators, historical developments, current trends, and reported performance indicators of key market players. In particular, we consider average prices and annual purchase frequencies.

Forecasts:

We apply a variety of forecasting techniques, depending on the behavior of the relevant market. For instance, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption. The main drivers are GDP per capita, consumer spending per capita, and 4G coverage.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level. The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year. In some cases, the data is updated on an ad hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development). Consumer Insights data is reweighted for representativeness.