October 2020 * * HDET EDIENTIA The value of esports in the UK A study for Ukie by Olsberg • SPI with Nordicity MATA ukie OLSBERG SPI Nordicity

Contents 03 Foreword and introduction The global esports phenomenon 10 What is esports? Why esports represents such a big opportunity for the UK 24 How big is esports and how fast is it growing? Revenue and Economic Impact 31 The value to local economies Key Impacts and the Potential of a Major UK event 34 How can the UK esports sector grow further? Ukie’s Recommendations for Growth 37 Appendix Economic Impact Methodology

Foreword Dr Jo Twist OBE, Ukie CEO In 1980 Atari ran the Space Invaders Tournament. It attracted over 10,000 participants and was won by Rebecca Heineman. It would have been hard DIGITAI to predict that playing and watching organised and competitive video SCHOO games – esports – would be the world's fastest growing entertainment sector 40 years on. BY But that is what has happened. A global sector at the intersection of technology, creativity, broadcast and entertainment – all areas of real national strength for the UK. This report shows us that the UK has a strong and growing esports industry, but that there is more to do to capture the full potential of this exciting, high-growth sector. Ukie, in its capacity as the trade body for esports, looks forward to continuing to work with industry and Government to make the UK a global hub for esports. lobal hub for esports.

~~About ~~ Ukie Ukie is the trade body for the UK games and interactive entertainment industry. With over 480 members, we represent games business of all sizes, from small start-ups to large multinational developers, publishers, service companies, charities and academic institutions, working across PC, console, mobile, online, esports and immersive technologies. As well as supporting our members by connecting them with one another and promoting their innovative games and services, we keep policy makers informed, ensuring essential support measures are provided by government for games companies and players alike. 4 | Foreword and Introduction

About ~~this study~~ Against the backdrop of opportunity and growth in UK esports, Ukie commissioned Olsberg•SPI with Nordicity to evaluate the scale of the sector in this study. The study assesses the economic impact of UK esports, and also provides an overview of the sector and its impact on regional economies. It also examines the breadth of businesses active in the sector, and includes a set of recommendations for the future growth of esports. Olsberg•SPI with Nordicity previously assessed the impact of esports to the UK’s economy and its role in the UK’s games industry in the 2018 study Screen Business, published by the British Film Institute. Since 2016, the base year for Screen Business, esports has continued to see strong growth in the UK and beyond – as shown by the results of this Study. 5 | Foreword and Introduction

Headline findings The esports sector has grown at an annual average rate of 8.5% between 2016 and 2019. The sector supported over 1,200 jobs in 2019. The UK esports sector represents just under 8% of the global market. The UK esports sector supported £111.5 million in Gross Value Added (GVA) in 2019. A major global esports event could generate 238 full-time equivalents (FTEs) of employment and £12 million in GVA for the UK economy. 6 | Foreword and Introduction