Why Social Media Platforms Are Jumping Into eSports
*By: Madison Alworth*
Snapchat is reportedly getting in on gaming.
The social media company has already begun talks with publishers about creating games specifically for its app, according to The Information, and is hoping to launch a platform this fall.
Snap's move is one indication of the growing interest in gaming, and esports specifically. The latter was once a fringe entertainment activity but is now fully mainstream.
That kind of interest comes as no surprise to Chris Merwin, a vice president and esports analyst at Goldman Sachs.
"This is a market growing in the double digits. It is a $120 billion market globally," Merwin said.
Goldman estimates that 167 million people around the world watch esports events every month. By 2020, the total monthly audience is estimated to reach 276 million people.
But will a big audience necessarily lead to big bucks? Merwin said the digital gaming industry currently faces a lack of infrastructure.
"We think over time, as more infrastructure is built in, monetization for esports can be about $3 billion," Merwin said.
Goldman forecasts the industry, which generated $655 million in revenue in 2017, could hit that $3 billion mark by 2020.
And millennials are driving the growth.
"I think things are changing with younger demographics," Merwin said. "So whether that's traditional TV viewership, or time on the phone, increasingly you're seeing younger demographics socialize in these games, and that's been a big cultural change over the last 5 to 10 years, and I think it will continue over time."
The growth has certainly sparked interest from venture capitalists. The esports industry has brought in $3.3 billion in funding since 2013.
For the full segment, [click here.](https://cheddar.com/videos/the-business-of-esports-with-goldman-sachs)
The Biden administration has enacted a new labor rule that aims to prevent the misclassification of workers as independent contractors. The labor department rule going into effect Tuesday replaces a scrapped Trump-era standard that lowered the bar for classifying employees as contractors
The KC-46 was to be the ideal candidate for a fixed-price development program. Instead, it has cost Boeing billions, and made industry wary of such deals.
Dave Long, CEO and Co-Founder of Orangetheory Fitness joins Cheddar to chat trends in the industry for 2024. He updates us on the company's plans to expand and what the state of the economy has meant for business.
One of the world's largest renewable energy developers will be getting hundreds of wind turbines from General Electric spinoff GE Vernova as part of a record equipment order and long-term service deal.
A moon landing attempt by a private US company appears doomed because of a fuel leak on the newly launched spacecraft. Astrobotic Technology managed to orient the lander toward the sun Monday so its solar panel could capture sunlight and charge its onboard battery.
Treasury Secretary Janet Yellen has announced that 100,000 businesses have signed up for a new database that collects ownership information intended to help unmask shell company owners. Yellen says the database will send the message that “the United States is not a haven for dirty money.”
A new version of the federal student aid application known as the FAFSA is available for the 2024-2025 school year, but only on a limited basis as the U.S. Department of Education works on a redesign meant to make it easier to apply.
A steep budget deficit caused by plummeting tax revenues and escalating school voucher costs will be in focus Monday as Democratic Gov. Katie Hobbs and the Republican-controlled Arizona Legislature return for a new session at the state Capitol.
The first U.S. lunar lander in more than 50 years is on its way to the moon. The private lander from Astrobotic Technology blasted off Monday from Cape Canaveral, Florida, catching a ride on United Launch Alliance's brand new rocket Vulcan.
