12 trends in FunTech in 2019 (p. 1)

While the crypto market is awaiting the Bakkt developments and long-craved bull-run, there's quite little going on in the industry. We decided to take this calm before the storm opportunity and use it to outline the twelve most important trends in FunTech industry. This will be useful for our readers both in terms of general understanding of technology and business trends for potential start-up ideas and personal growth paths.

We're tracking the trends in FunTech industry because it is huge, life-affecting and there are tectonic shifts coming its way. In 2018 we stumbled upon a nice term "Leisure Economy". It's growing. And here're the 12 factors that will determine this economy in 2019.

1. eSports going mainstream

According to PwC, by 2022, eSports as a separate market segment will boast higher YoY growth than ANY OTHER INDUSTRY - 25,5%. There's a catch though, starting small is always more impressive. eSports is still, and still will be a small industry. However, from the venture capital point of view, it is an extremely attractive realm.

What awaits us:

• New community formats (Caffeine)
• Mobile eSports (Supercell)
• Growth of Premium passes popularity
• eSports venues
• The diminishing role of South-East Asia in eSports
• Streamers as new digital celebrities
• eSports stars in advertising
• Growth of salaries and exit of agents

2. Music in the new format

The length of modern music tracks is getting shorter and shorter year by year. Spotify and other music streaming platforms have changed the business model so much that it has become more lucrative for artists to produce more short tracks. Pure mathematics.

It is not the only thing that's changing. We've already entered the age of new kind of distribution where the majors are having a harder time to dominate the listeners' demand. But even this is not as revolutionary as the fact that music itself doesn't need the musicians anymore. AI not only can create but also adjust the content for the end user.

What awaits us:

• Distribution through platforms, not majors. Instagram-labels
• Generative music
• Functional music
• Podcasts
• Niches

3. The new era of Gaming

In 2018 videogames market totalled at $115,8 bln (+$22,1 bln versus 2017). You've probably killed a couple of hours (days?) for Red Dead Redemption 2 too. And this is only beginning. Yesterday's schoolkids have grown up. Instead of a cinema or a club, they're bringing their money to Netflix and gaming consoles.

On the last CES, guys from Sony told the audience that they've sold 91,6 mln PlayStation 4. Today, the monthly audience of PS os 90 mln people.

Netflix once coined a beautiful quote that their main competitor is sleep. But now, there's appeared one more influencer - gaming.

What awaits us:

• Gaming blockbusters
• Stores everywhere (Discord, Epic Games)
• Discord
• Gaming clouds (NVidia, Amazon)
• Interactive movies and steep growth in VR
• Chinese Steam
• Chinese Fortnite
• Hypercasual games

4. Online vs. Offline

In his [annual report]https://www.ben-evans.com/benedictevans/2018/11/16/the-end-of-the-beginning), Benedict Evans, partner of Andreessen Horowitz firm, brought up a very actual idea. The period of "beginning" has ended. Now, online is not a separate world for marginals, now it is a part of the universe. For us, people using the internet on a daily basis, like VHCEx traders, it is by no means news. The news is online is actively disrupting processes taking place offline.

TV has passed the point of no return and has moved to web. Taxi, food delivery... It also applies to entertainment. People more and more often opt to online instead of going to the club (Instagram), to the cinema (Netflix), or a game of poker with friends (PokerStars). In the end, any type of leisure or having fun without informing all friends on social networks has almost become unfulfilling.

What awaits us:

• All offline activities are now recorded online by the participants themselves
• Competition of sports and esports as media products
• What are you waiting for? Throw away all this old stuff you have