What Cities Need to Know About the Booming eSports Industry

The world of professional, competitive video gaming is expanding at a rapid pace – and you might be surprised to learn that cities stand to benefit from its growth.

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Twitch streamers (professional competitive video gamers) gather at the White House for its first-ever competitive gaming event on Monday, December 12, 2016.

This post was co-authored by Angelina Panettieri and Courtney Bernard.

This week, more than 220,000 people tuned in to watch the first-ever White House eSports event on Twitch. For those not familiar with the video game industry, this event may prompt a few questions – namely, what are eSports and Twitch? Why is this a draw for so many people? And what could this mean for my community?

NLC staff were on-site for the event, and we’ve compiled the top things every city leader needs to know about the fast-growing industry set to generate $1 billion within the next few years.

eSports are everywhere – and the industry is expanding rapidly.

eSports – a term that refers to professional, competitive video gaming – are increasingly popular spectator events driving major investment and interest. Enthusiasts around the globe attend events in person or stream content with online platforms like Twitch, which has nearly 10 million daily active users. Spectators watch gamers play everything from multiplayer online battle arena (MOBA) games to strategy games.

Currently, 14 percent of Americans follow eSports. To put that into perspective, eSports spectators actually outnumber those watching the World Series or NBA Finals. And while there are hundreds of millions of people across the country that already watch eSports, even more are playing video games – 49 percent of American adults, to be exact.

The rising popularity of video games and eSports is driving major consumer brands like Coca-Cola, ESPN and American Express to invest in the industry. As the competitive gaming industry continues to evolve, analysts expect audience and revenue growth to accelerate rapidly.

eSports events could drive tourism for cities.

The widespread appeal of eSports make events and tournaments a potentially major draw for tourism, both here at home and abroad. eSports events are selling out stadiums, convention centers and other large venues around the globe. In 2015, there were 112 major eSports events, and they generated $20.6 million in ticket revenues.

In the United States, these events have become a major draw for tourism in cities like Los Angeles and New York. The projected growth trend for eSports suggests that many other cities can leverage the phenomenon to boost tourism and engage members of the community.

The eSports boom has already drawn the attention of traditional sports team owners and franchises. For example, Golden State Warriors co-owner Peter Guber and Washington Wizards majority owner Ted Leonsis recently joined forces to acquire eSports franchise Team Liquid, and the Philadelphia 76ers purchased two eSports teams as well. Partnerships and acquisitions like these could lead to huge opportunities for local eSports expansion.

eSports enthusiasts in your city need robust broadband infrastructure.

In order to leverage this booming new industry, cities need to ensure their broadband infrastructure is up to snuff. While a number of federal programs have targeted the homework gap and the need for students to have access to broadband both at school and at home, cities should not ignore a similar recreation gap for entertainment streaming services. City residents increasingly expect access to broadband at home, whether they use it for work or play. A 2015 study found that a fiber optic internet connection increases the value of a home by as much as an additional fireplace or half-bath.

Online gaming and streaming activities are driving the need for reliable, low-latency broadband service in the home. While broadband infrastructure continues to expand, the percentage of Americans choosing to purchase broadband remains near 70 percent of households. If leaders in your community – and residents – are struggling to see the value of a robust broadband infrastructure, eSports and online recreation may be the missing link.

About the authors:

Angelina Panettieri is the Principal Associate for Technology and Communication at the National League of Cities. Follower her on twitter @AngelinainDC.

 

Courtney Bernard is the Senior Communications Associate in NLC’s Center for City Solutions and Applied Research. Follow her on Twitter @cbernard916.