Interactive Video vs Gaming

Part
01
of three
Part
01

Video Spend: North America, Europe, APAC

Total consumer spending on videos and disc rose 12% from 2017 to reach $23.3billion in 2018. Total consumer spending on movies and music videos in the Asia Pacific were $26.0 billion in 2017.

NORTH AMERICA

  • Total consumer spending on videos and disc rose 12% from 2017 to reach $23.3 billion in 2018.
  • Total consumer spending on stream online video subscriptions rose 39% to reach $20.6 billion.
  • The total amount spent on box office performance rose by 7% from 2017 to reach $11.9 billion in 2018.

ASIA PACIFIC

  • Total consumer spending on movies and music videos in the Asia Pacific were $26.0 billion in 2017.
  • China box office rose by 12% from 2017 to reach $9 billion in 2018, making it the largest outside North America.
  • South Korea box office was $1.6 billion in 2018.
  • The total amount spent on box office performance rose by 5% from 2017 to reach $16.7 billion.

THE UNITED STATES

  • Total consumer spending on videos in the United States was $23.3 billion, an increase of 11.5% from 2017.
  • Total consumer spending subscription streaming i.e., Amazon Prime Video, Netflix, Hulu, etc. had a year-over-year increase of 30% to reach $12.9 billion.
  • Total consumer spending on stream on-demand movies, the digital equivalent of renting a Blu-ray disc or DVD was $2.09 billion.
  • Total disc sales dropped by 14.8% to reach $1.24 billion.

THE UNITED KINGDOM

FRANCE

  • The total amount consumers spent on box office performance in France was $1.6 billion in 2018.

GERMANY

  • Total consumer spending on videos grew by 6% last year to the sum of $10.3 billion.
  • Consumer spending on "subscription video-on-demand services" (SVOD) is estimated to reach the sum of $1.14 billion by 2020.
  • By 2021, consumers are estimated to spend more buying or renting digital TV shows and videos than Blue-rays and DVDs.

JAPAN

  • The total amount consumers spent on box office performance in Japan was $2 billion in 2018.

ADDITIONAL INFORMATION

  • Total amount spent on box office performance fell by 3% from 2017 to reach $9.8 billion in Europe, the Middle East, and Africa.

RESEARCH STRATEGY

We began our research by examining media reports, academic reports, and industrial reports for precompiled data on how much people spend on video annually. We were able to find data for North America and the Asia Pacific, however, we couldn't trace any information specific to Europe because the data was clubbed with those regarding the Middle East and Africa.

But, we continued analyzing the data exclusive to the Middle East and Africa, with the intent of triangulating the data specific to Europe. However, this search attempt did not return any substantial information. As our last resort, we decided to identify the data specific to each European country and add the values to fulfill the requirement. But, the search results did not prove to be fruitful.
Part
02
of three
Part
02

Video Game Spend: North America, Europe, and APAC

In North America, spending on video games reached $32.7 billion in 2018, showing an increase from 2017 ($27 billion). The United States is the leading market in the region with $30.4 billion.

NORTH AMERICA

  • According to WePC, North America's video gaming revenue for 2015 was $23.8 billion, while in 2016 it reached $25.4 billion and $27 billion in 2017.
  • Based on Newzoo’s report, the market revenue of video games in this region in 2018 reached $32.7 billion, reported a year over year growth of 10%. North America accounts for 23% of the global video games market.
  • By 2019, the revenue for this region is projected to reach $39.6 billion, making up 26% of the global video game industry.

Additional Findings:

  • The United States is leading the video game market for the North American region with $25.4 billion in revenue in 2017 and $30.4 billion in 2018.
  • In the United States, 45% of gamers are women, however, men buy more games (61% vs 39%).
  • Adults aged 50 and over account for 23% of video gamers in the United States.
  • Around 60% of people in the United States play video games every day.
  • In 2017, the video game industry in Canada provided $3.7 billion to the country's economy.
  • Slightly more than two-thirds (61%) of Canada's population identified as video gamers, where 39 is the median age of players.
  • The gender breakdown is 50% each for men and women.
  • The largest group of video game spenders belong to the 25-34 age bracket (35% of total spending).

EUROPE

  • As reported by Game World Observer, the video games market in the EU was valued at €21 billion ($23 Billion) in 2018, which was a 15% increase from the previous year.
  • A sizable portion of the revenues came from four nations, namely France, the United Kingdom, Spain, and Germany which made up 47% of the overall market in the EU.

Additional Findings:

  • In 2018, Germany led the video game market in Europe with $4.7 billion, followed by United Kingdom with $4.5 billion. France and Spain's annual spending amounted to $3.1 billion and $2 billion, respectively.
  • Video games via consoles accounts for 47% of the EU market revenue.
  • In Europe, 54% of the population aged 6-64 play video games, mostly those from the younger population.
  • The share of video gamers by age group are as follows: 84% of ages 11-14, 76% of ages 6-10, 74% of ages 25-34, 67% of ages 25-34, 49% of 35-44, and 34% of ages 45-64 plays video games.
  • By gender, 46% of EU gamers are women, which means men represent the other 54%. Around 63% of women prefer to play on smartphones and tablets.

Asia Pacific

  • According to a WePC industry report, Asia Pacific is the largest market for video games among other regions. Revenue for 2015 was valued at $43.1 billion, while revenues in 2016 and 2017 reached $46.6 billion and $51.2 billion, respectively.
  • The Asia Pacific holds the largest market share of the global games market with 52%, achieving $71.4 billion in revenue in 2018.
  • The year-on-year growth of 16.8% is due to smartphone gaming where the Asia Pacific has the largest player base.
  • By 2019, it is projected that the Asia Pacific will still lead the market with a 47% market share and generating a revenue of $72.2 billion.

Additional findings:

  • China leads the Asia Pacific region with $37.95 billion. Japan's video game revenue is $19.23 billion, while the Republic of Korea has $5.65 billion.
  • Techjury reported that China has an estimated 600 million gamers, which is almost twice the size of the US's total population. The country has the majority of the world's video game players.
  • However, just one Chinese player is included in the top 10 paid pro gamers chart.
  • There are a total of 67.6 million video game players in Japan.
  • About 77% of paying video game players in Japan spent their money on in-game purchases in the six months leading up to August 2018.


Research Strategy:

Our research began by scouring different sources from Newzoo, WePC, Knoema, Game World Observers, and other credible sources relevant to the video game industry. While we did not find actual spending from each region, we came across revenues earned from video games, which also equates to spending from said industry. We also included optional information (i.e. statistics from some countries that had readily available data). During our research, we were unable to locate readily available information on statistics by age and gender.
Part
03
of three
Part
03

Video Gaming vs Video Watching: Australia and Latin America

Australians spend approximately 2 hours and 27 minutes watching live TV and recorded TV content daily, while Latin Americans spend on average 115 minutes daily watching TV content and 96 minutes watching internet media content. Unfortunately, we were unable to determine the amount of money spent by Australians and Latin Americans on watching videos and the time spent on video games in both locations. Below is an overview of the information that was available.

AUSTRALIA

VIDEO WATCHING: TIME AND MONEY SPENT

  • According to Nielsen, an average Australian home now possesses 6.6 screens on which video content is consumed.
  • These are screens from devices such as tablets, internet-capable TVs, high definition (HD) TV sets, and smartphones.
  • Broadcast TV watched on TV sets at home broadcast is still used the most to view videos.
  • The report stated that 19.64 million Australians representing 82.6% of the metered market population watched broadcast TV in the last quarter of 2017.
  • On average, Australians spend 2 hours and 27 minutes watching live TV and recorded TV content daily. This equates to 74 hours and 58 minutes monthly.

BY AGE
  • Australians between 18 to 24-years of age spend most of their time watching online video content while also constituting 63.1% of live TV broadcast views. They spend an average of 22 hours monthly watching video content on all kinds of digital devices.

VIDEO GAMING: TIME AND MONEY SPENT

  • A study by the Interactive Games and Entertainment Association (IGEA) reports that Australians spend approximately 88 minutes playing interactive video games daily.
  • The report suggests that even though "the market for Australian video games is growing, the size of the domestic video game development industry has decreased."
  • 68% of the country's population plays interactive games.
  • As of 2014, the interactive video game industry was worth $2.46 billion, which was a 20% increase from its estimated worth in 2013.
  • Sales were divided between traditional retail sales ($1.214 billion) and digital sales ($1.248 billion). Digital sales had grown by 39% since 2013.

BY AGE
  • In Australia, 98% of homes with children under the age of 18 years have an interactive video game device.
  • In Australia, 78% of the population who play games are 18 years or older, 71% are between 18–64 years, 23% are 50 years and above, and 7% are over 65 years of age.
  • The average age of video game players is 33 years and 47% of them are female.

LATIN AMERICA

VIDEO WATCHING: TIME AND MONEY SPENT

  • In 2018, Latin Americans spent an average of 115 minutes each day watching TV content and 96 minutes watching internet media content.
  • In 2019, the region is poised to spend 183 minutes watching television content and 181 minutes watching internet video content.
  • According to a report by eMarketer, in 2019, 289.2 million Latin Americans will watch digital videos. This represents 45.3% of the region's population.

VIDEO GAMING: TIME AND MONEY SPENT

  • Latin Americans spent a total of $4.1 billion on video games in 2016. This was a 20% increase from the previous year.
  • In general, there are 110 million gamers in the region and Latin America is the second region behind South Asia in terms of game market growth worldwide.
  • In 2018, the video game spend in the region was predicted to rise to $5 billion. The top nations in the region include Brazil, Mexico, and Argentina.

RESEARCH STRATEGY

To answer the question, we searched through media sources, publications, and market reports. For the Australian market, we found a report from Nielsen on the Australian video viewing market and a corroborating source from Think TV. We found an Australian Parliament document on video game production and consumption in Australia. For Latin America, we found reports by Game Industry, Venture Beat, and eMarketer that provided the required information. Unfortunately, we were unable to determine the amount of money spent by Australians and Latin Americans on watching videos and the time spent on video games in both regions. The research strategies mentioned below were applied to find the information.

Our first strategy to find information on the amount of money spent on watching videos in Australia and Latin America and the time spent on video games in both locations was to consult trusted media sources, publications, market reports, news articles, and media market analysis for Australia and Latin America. We found no relevant information from these sources.

Next, we attempted to triangulate the information by searching for global and regional data. The information found was either outdated or behind a paywall. We were unable to find sufficient data to triangulate any figures.

Last, for the Latin American region, we attempted to find the time spent on video games by each of the countries and their average, but we were only able to find information on three of the 23 countries in the region. We found that Mexico, Brazil, and Argentina were the region's largest market contributors so we decided to use their details to find an average figure. The information available for Brazil was dated 2015, while the data available for Argentina and Mexico was dated 2017 which implied that the average would be incorrect.
Sources
Sources