Search results will open in a new window on money.tmx.com.

TMX POV - The Staying Power of eSports

TMX POV - The Staying Power of eSports

A Saturday afternoon final. A sold out Arthur Ashe stadium. Millions of fans from all around the world watching. Canadian fans pinning their hopes on a teenage phenom.

No, I am not talking about the 2019 Women's US Open Final, though, it goes without saying, congratulations, Bianca! #ShetheNorth

This is actually the story of Hayden Krueger, and his third place finish in the Fortnite World Cup duo competition, which took place this past July. And while he isn't a household name yet, the teenage phenom still won more than US $1 million in prize money.

This year, the eSports industry will top US $1B in revenue; its growth rate is triple the rate of the video game industry. Today, gaming is at the heart of the entertainment experience. Gen Z is one of the first generations in decades that is growing up without a cable subscription. Instead, they have access to high-speed internet and are thus diverging from traditional forms of media and entertainment. Currently, 30% of US consumers pay for a gaming subscription service, and at least 41% play video games on a weekly basis. As this trend is likely to continue, growth and interest in watching eSports should only continue to rise.

This presents a perfect match; the enthusiasm of Gen Z gamers and the desire of advertisers and marketers to reach this elusive generation. I would argue this is one of the key factors behind the unprecedented growth of the eSports industry.

This season the OverWatch League ("OWL")* will have its Grand Final broadcast on ABC, in front of a sold out crowd at the Wells Fargo Arena in Philadelphia. As the events continue to gain traction and viewership, it will become even more important for brands to have eSports as part of their overall branding and marketing strategy. With OWL's recent announcement of the league's new travelling format for the 2020 season, marketers and consumer products companies will need to find ways to adapt to changing consumer behaviour, and I for one, am looking forward to watching the next steps of this burgeoning industry.

*OWL has two Canadian franchises, Toronto Defiant and Vancouver Titans, who are managed and partially owned by Enthusiast Gaming Holdings Inc. (TSXV:EGLX).


Photo of Dani Lipkin

Dani Lipkin

Innovation Sector Head 
Toronto Stock Exchange & TSX Venture Exchange


Follow Dani on LinkedIn

This article is provided for information purposes only, is not intended to provide any type of advice. This article is not an endorsement or recommendation of any securities or industry referenced herein. Views, comments or opinions expressed in this article are those of their respective contributors only, and are not necessarily endorsed by TMX Group Limited, any of its affiliates or their respective management or employees.

Related Articles

  • March 31, 2021
    As we come to the end of Women’s History Month, let’s acknowledge some history-making women CEOs in the Canadian and U.S. public markets.
    April 6, 2021
    In 2004, an Ottawa-based ecommerce startup launched a website called Snowdevils to sell snowboards. It then quickly became a platform where folks like you and I can create our own websites to sell stuff. Ten years later, the platform had 140,000 active stores, $3.5 billion in sales and became one of Canada’s most innovative companies.
  • March 25, 2021
    By listing on Toronto Stock Exchange (TSX) and TSX Venture Exchange (TSXV), some of Canada’s most innovative and fastest-growing small and mid-sized companies look to raise capital from retail and institutional investors to finance their growth.
    March 3, 2021
    The Canadian sustainable bond market is growing rapidly with more than C$35 billion already raised by over 19 different organizations. There are three types of sustainable bonds: green (to finance renewables, public transit, energy efficiency, etc.), social (targeting positive social outcomes such as housing and education), and transition (to finance a lower carbon future).
  • April 12, 2021
    It was a virtual work call and if it was pre-COVID 19. I'm sure everyone would have seen my eyes roll. My annoyance and somewhat frustration was directed at a colleague who just suggested that it would be timely to buy SPY (the NYSE Arca listed and world’s largest ETF tracking the S&P 500) to capitalize on recent US specific news.