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What Are Activision Blizzard’s Key Revenue Drivers?

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eSports

In the previous article, we learned about the importance of Activision Blizzard’s (ATVI) latest release, Call of Duty: Black Ops 4. While the game will be a key revenue driver for Activision in the short term, there are other verticals contributing to the company’s long-term growth.

Activision Blizzard is set to benefit as part of a high-growth industry. Global gaming markets are expected to rise at a CAGR (compound annual growth rate) of 11% to $180 billion between 2018 and 2021.

Activision Blizzard was one of the first entrants into the esports market with the launch of its Overwatch League earlier this year. ATVI recently expanded the number of teams from 12 to 20 in a move that should generate millions of dollars in revenue.

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The first season of Overwatch League was a success. The finals took place at the Barclays Center in New York with a full-house attendance of 11,000 spectators. The audience didn’t mind the price of $200 per ticket and flocked to the stadium in huge numbers. The esports market is worth close to $1 billion and is expected to double within the next five years.

Compelling portfolio of games

Activision Blizzard has an enviable portfolio of games, including blockbuster franchises such as Call of Duty, Overwatch, World of Warcraft, and Candy Crush. In the second quarter, Activision Blizzard had 352 million monthly active users with an average gaming time of 50 minutes per day.

These games will be important for Activision as it looks to grow its revenue and attract players.

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