Market Insights Advertising & Media Esports

Media Rights - South Korea

South Korea

In South Korea, revenue in the Media Rights market market is projected to reach €5.3m in 2024.
The revenue is expected to demonstrate an annual growth rate (CAGR 2024-2029) of 5.48%, leading to a projected market volume of €7.0m by 2029.
Although most revenue is generated the United States, South Korea's market is also poised for growth, with a projected market volume of €69.0m in 2024.
In South Korea, the burgeoning eSports scene is increasingly attracting significant media rights investments, highlighting its cultural prominence and global competitive edge.

Key regions: United States, Sweden, Asia, Europe, Germany

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Analyst Opinion

The eSports market in South Korea is seeing minimal growth in its media rights sector, influenced by factors such as the country's strong gaming culture and increasing global interest in eSports. Other factors affecting this growth rate include the saturation of the market and the high competition among media companies for broadcasting rights.

Customer preferences: As eSports continues to gain mainstream popularity, there has been a notable increase in demand for media rights, as viewership numbers continue to rise. With the rise of digital platforms and streaming services, consumers are now able to access eSports content from the comfort of their own homes. This has led to a shift in consumer preferences towards more convenient and easily accessible media options. Additionally, with the rise of younger generations as the primary consumers of eSports, there has been a shift towards more diverse and inclusive content, reflecting the changing cultural and demographic landscape in South Korea.

Trends in the market: In South Korea, the Media Rights Market within the eSports Market is experiencing a surge in live streaming platforms, with more viewers turning to these platforms to watch eSports tournaments and events. This trend is expected to continue as eSports gains mainstream popularity, with the potential to attract a larger audience and increase revenue for industry stakeholders. Additionally, there is a growing trend of partnerships between eSports organizations and traditional media companies, providing more exposure and legitimacy to the industry. This could lead to increased competition for media rights, potentially driving up their value in the market.

Local special circumstances: In South Korea, the Media Rights Market within the eSports Market is heavily influenced by the country's tech-savvy population and advanced digital infrastructure. This has led to a high demand for online streaming and broadcasting of eSports events, driving up the value of media rights. Additionally, the country's strong gaming culture and government support for the eSports industry have created a highly competitive and lucrative market for media rights. Furthermore, strict regulations and censorship laws in South Korea have also shaped the media landscape, with certain games and content being restricted or banned, adding another layer of complexity to the media rights market.

Underlying macroeconomic factors: The Media Rights Market within the eSports Market market in South Korea is heavily influenced by macroeconomic factors such as global economic trends, the national economic health, fiscal policies, and other relevant financial indicators. As one of the leading countries in the eSports industry, South Korea's economic stability and growth directly impact the performance of the market. Additionally, the government's support and investment in the eSports industry through initiatives such as the Korea Creative Content Agency and the Korea e-Sports Association play a crucial role in driving market growth. Furthermore, the increasing popularity of eSports globally and the growing demand for media rights in the industry contribute to the market's growth in South Korea.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on the Media Rights market, which comprises revenues from ownership rights of media agencies. These include payments to industry stakeholders to secure the rights to show Esports content on a channel, payments from streaming platforms (e.g., Twitch) to organizers to broadcast their content, payments from foreign broadcasters to secure the rights to show content in their region, or the copyright costs for showing video/image content of an Esports competition. All figures are based on net revenues and exclude agency commissions, rebates, and production costs.

Modeling approach / market size:

The market size is determined through a bottom-up approach. We use annual financial reports of the market-leading companies and industry associations, third-party studies and reports, survey results from our primary research (e.g., Consumer Insights), as well as performance factors (e.g., user penetration, price per product, usage) to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country-specific industry associations, such as various macroeconomic indicators, historical developments, current trends, and reported performance indicators of key market players. In particular, we consider average prices and annual purchase frequencies.

Forecasts:

We apply a variety of forecasting techniques, depending on the behavior of the relevant market. For instance, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption. The main drivers are GDP per capita, consumer spending per capita, and 4G coverage.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level. The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year. In some cases, the data is updated on an ad hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development). Consumer Insights data is reweighted for representativeness.