NEWZOO & ESPORTS BAR51512© copyright Newzoo 2018 3Brazil is in the world in terms ofEsports Enthusiasts © copyright Newzoo 2018 4FOREWORDJurre PannekeetSenior Market AnalystNEXT EDITION: September 24th-26thMiamiThe passion that Brazil is renowned for in the sporting world is clearly visible in its thriving esportsscene. It boasts a huge esports audience, with fans known for their dedication to their games andteams. In fact, Brazil has the third-most Esports Enthusiasts in the world with 7.6 million Brazilianswatching professional content more than once per month.On top of that, Brazil has given rise to many globally successful teams and strong localinfluencers. Many top-tier international teams have highly skilled Brazilian players in their roster,especially in Counter-Strike: Global Offensive. Local heroes such as Gabriel “FalleN“ Toledo havehundreds of thousands of followers on social media and Brazilian broadcasters are racking upmillions of viewing hours on Twitch.This whitepaper, brought to you by the Esports Bar and Newzoo, offers insights into the thrivingesports scene in Brazil, including a detailed overview of the esports audience, key players in theindustry, most popular esports content, and top events.BRAZIL: KEY STATSPOPULATIONGAMERSGAME REVENUESESPORTS ENTHUSIASTSANNUAL SPEND/PAYER210.9M75.7M$1.5BN7.6M$37.22© copyright Newzoo 2018 Source: 2018 Global Esports Market ReportESPORTS AUDIENCE GROWTH PER TYPE | 2016-2021 of the online population is an Esports Enthusiast, lower than inChina (7.9%) and the U.S. (7.7%). This means there are 7.6million Brazilian Esports Enthusiasts in 2018.Esports awareness is also lower, at 47% of the onlinepopulation. This leaves plenty of room for the audience to growas esports becomes more mainstream, IT infrastructureimproves, and new titles gain popularity. By 2020, there will bealmost 30 million Brazilians watching esports in some capacity.OCCASIONAL VIEWERSESPORTS ENTHUSIASTS8.8M10.7M15.3M2018 202120176.6M 7.6M12.6MYoY+8.5%CAGR2017-2021+16.0%TOTAL AUDIENCETOTAL AUDIENCEYoY+18.6%TOTAL AUDIENCE5© copyright Newzoo 2018 6OVERLAP BETWEEN SOCCER FANS AND ENTHUSIASTIC ESPORTS VIEWERS | BRAZIL | 2018ALL FREQUENT BRAZILIANSOCCER FANSBRAZILIAN ENTHUSIASTIC ESPORTS VIEWERS* THAT DOWATCH SOCCERBRAZILIAN ENTHUSIASTIC ESPORTS VIEWERS* THAT WATCH SOCCERALL SOCCER FANS ESPORTS & SOCCER FANS ESPORTS ONLY FANS*Enthusiastic Esports Viewers defined by viewing professional esports at least once a month.Source: 2018 Games Consumer Insights | Based on the online population aged 10-6543%43%15% 0%24%39%25%12%Aged 10-20Aged 10-2010-2036-5021-3551-65© copyright Newzoo 2018POPULARITY OF PROFESSIONAL GAMING DRIVES TRADITIONAL SPORTS CLUBS TO ENTER ESPORTSFLAMENGOTEAMS: LEAGUE OF LEGENDSFOUNDED: 2017CLUBS MAIN SPORT: SOCCERRONALDOTEAMS: FIFA, LEAGUE OF LEGENDS, ARENA OF VALORFOUNDED: 2001INVESTORS MAIN SPORT: SOCCERResponding to the growing interest in esports in Brazil, historic sports club Flamengo launched its esport division in 2017. Flamengo announced a League of Legends roster and a dedicated training facility, with plans to expand to other games.The prominent Brazilian soccer player Ronaldo invested in CNB e-Sports Club, alongside poker players André Akkari and Igor Trafane. The team, founded in 2001, currently competes in FIFA, League of Legends, and Arena of Valor. 7© copyright Newzoo 2018 8A PROFILE OF OCCASIONAL VIEWERS AND ENTHUSIASTIC VIEWERS IN BRAZILare aged between 10 and 25 vs. 40% of occasional viewersare women vs. 38% of enthusiastic viewersconsider themselves core gamers vs. 55% of enthusiastic viewersown a gaming-specific headset vs. 53% of occasional viewersuse Instagram vs. 68% of occasional viewershave a very positive brand attitude of Coca Cola vs. 36% of occasional viewershave a current subscription to Spotify vs. 47% of enthusiastic viewersactively watch and/or follow soccer vs. 78% of enthusiastic viewersENTHUSIASTIC VIEWERSWATCH ESPORTS > ONCE/MONTHOCCASIONAL VIEWERSWATCH ESPORTS < ONCE/MONTHBRAZILIAN ESPORTS AUDIENCEIN 2018, SPLIT PER TYPE59%41%OCCASIONAL VIEWERSENTHUSIASTIC VIEWERSSource: 2018 Games Consumer Insights | Based on the online population aged 10-65© copyright Newzoo 2018 9Total prize money for the Brazilian team since it was founded in 2015© copyright Newzoo 2018 10ESPORTS SPONSORSHIPS DEALS ACTIVE IN 2018 IN BRAZILIn October 2017, Vivo and Keyd Stars renewed their sponsorship agreement for another two years, leading to a prominent rebranding of the teams name to Vivo Keyd.The deal covers four teams, including the addition of Clash Royale players to the Vivo Keyd roster and a womens CS:GO team. The sponsorship is one of Vivos esports pillars for 2018, along with the creation of Vivo Games4U, a new games and esports content app, and Game Changers, a sequel to the documentary series focusing on the Brazilian gaming scene.