Overwatch League aims to make eSports mainstream (ATVI)

This story was delivered to BI Intelligence "" subscribers hours before appearing on Business Insider. To be the first to know, please .

Video game developer Activision Blizzard launched its esports league for Overwatch, a cartoonish first-person shooter game,The Wall Street Journalreports.

Activision aims to ultimately bring esports to the mainstream, on par with its traditional counterparts, like football and basketball.

The Overwatch League will have a total of 12 teams tied to particular cities, and games will be broadcast on Twitch, a gamefocused live streaming platform. The league hopes its city-based team structure, which is typical for traditional sports leagues, will encourage fan engagement and drive growth.

Traditional sports leagues are betting on esports to hedge against losses associated with declining linear TV and live sports viewership. Jeff Wilpon, COO of the MLB’s New York Mets, purchased rights to the New York franchise of the Overwatch League, for example. Additionally, Robert Kraft, owner of the NFL’s New England Patriots, owns its Boston team. Sports executives see esports as a potentially profitable venture, as big-spending advertisers are looking to get it on the demographic, according to Wilpon, per The Wall Street Journal.

The audience for esports is younger, large, and growing. The average esports fan is between 21 and 35 years old, according to Newzoo BV. Moreover, BI Intelligence estimates that the global esports audience stood at 296 million in 2017, up 41% from 210 million in 2015. BI Intelligence forecasts total global viewership to reach 426 million by 2020 at a compound annual growth rate (CAGR) of 15.2%.

The Overwatch League’s performance, in terms of viewership and ability to attract ad dollars, will be closely watched by other video game makers. The Overwatch League could pave the way for other esports leagues to attract investment. Take-Two Interactive Software is building its own esports league for its NBA 2k series, and high Overwatch League viewership would likely bode well for its own ability to lure new investors and ad dollars, for example.

BI Intelligence, Business Insider's premium research service, has compiled an unparalleled report on the eSports ecosystem that illuminates the business of eSports from four angles:

Interested in getting the full report? Here are two ways to access it: