eSports Step Up Their Game
The emergence of eSports has some investors excited about the potentially massive market this new form of entertainment may become; eSports may one day even disrupt legacy sports. eSports consists of people watching—and sometimes paying to watch—other people play video games in a competitive environment, with meaningful prize money opportunities for winning championships.
  • While there are currently 380 million total global eSports viewers, this number is expected to increase to 557 million viewers by 2021. The under 25 population is the main driver of audience growth; many of these participants regard eSports as appealing and more exciting than traditional sporting events. 

  • One popular video game called League of Legends garnered 58 million viewers for its 2017 world championship.1 That number equals two thirds of the Super Bowl viewership that year. The foremost eSports platform, Twitch, streamed 5.9 billion hours last year, up more than 20% year over year, and equating roughly to the global viewership of the NFL.2

  • Asian countries lead the eSports trend and host the majority of viewers. The eSports bug is catching on in the U.S. as 58% of Americans ages 14-21 watch eSports.3

​​1 Riot Games, LOL ESPORTS Events by the Numbers. 
Twitch, 2017 Year in Review. 
3 Washington Post, Teenagers Are Fueling a Competitive Gaming Tidal Wave.

The views expressed are the views of Fred Alger Management, Inc. as of August 2018. These views are subject to change at any time and they do not guarantee the future performance of the markets, any security or any funds managed by Fred Alger Management, Inc. These views are not meant to provide investment advice and should not be considered a recommendation to purchase or sell securities.

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