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Activision Blizzard’s Revenue by Distribution Channel (2016-2021)

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This article shows Activision Blizzard’s Revenue by Distribution Channel from Q1 2016 onwards, split across Digital online stores, Retail channels, and Other.
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This article shows Activision Blizzard’s Revenue by Distribution Channel from Q1 2016 onwards, split across Digital online stores, Retail channels, and Other, every quarter.

Activision Blizzard, Inc. is a world leader in interactive entertainment content and services development and publishing. Content and services on video game consoles, personal computers, and mobile devices are designed, developed, and distributed by them. They also run eSports leagues and provide digital marketing services.

Activision Blizzard’s Revenue by Distribution Channel

Activision Blizzard market and sell our games through following distribution channels:

  • Digital online stores
  • Retail channels
  • Other
Distribution Channel Revenue in Q1 2020 Revenue in Q4 2020 Revenue in Q1 2021 Revenue Share in Q1 2021
Digital online stores $1441 $1874 $2006 88%
Retail channels $221 $234 $149 7%
Other $126 $305 $120 5%
Total $1788 $2413 $2275 100%

(All figures in millions, except percentages)

Activision Blizzard’s total revenue increased from $1788 million in Q1 2020 to $2275 million in Q1 2021, marking a 27% increase on a year-on-year basis. However, the revenue fell by 6% compared to $2413 million in the previous quarter. The majority of Activision Blizzard’s revenue comes from the Activision segment.

Digital online stores

Activision Blizzard’s Digital online stores generate revenue through digitally distributed downloadable material, microtransactions, subscriptions, and products, as well as licensing fees.

Activision Blizzard earns the majority of its revenue through digital online stores accounting for 88% of the total revenue in Q1 2021. They earned $2006 million in Q1 2021 through digital online stores, up by 39% from $1441 million in Q1 2020 and by 7% from Q4 2020. The share of Activision Blizzard’s revenue produced through digital distribution channels continues to rise because there is no minimum capital required to manufacture and publish a digitally delivered game, particularly a game for a mobile platform.

Retail Channels

Retail Channels include sales made based on purchase orders, with no long-term contracts or other types of commitments.

In Q1 2021, Activision Blizzard’s revenue from Retail channels stood at $149 million, down by 33% from $221 million in Q1 2020. The revenue also decreased by 36% from $234 million in Q4 2020. As digitally distributed products offer larger profit margins than retail sales, the business has migrated to digital distribution. As a result, the amount of orders for physical discs from retailers has decreased and is expected to continue to decrease in the future. Retail channels contributed to 7% of the company’s total revenue.

Other

Activision Blizzard’s Other consists of revenues from the distribution business, the Overwatch League, and the Call of Duty League. It generated most of its revenue through eSports events.

Activision Blizzard’s revenue from Other amounted to $120 million in Q1 2021, indicating a 5% decrease compared to $126 million earned a year ago in Q1 2020. It also had a 61% decline from $305 million in Q4 2020. The Other Channel contributed up to 5% of Activision Blizzard’s total revenue.

About Activision Blizzard

Activision Blizzard, Inc., headquartered in Santa Monica, California, is a video game holding corporation. Activision, Inc. and Vivendi Games merged in July 2008 to form Activision Blizzard Inc. The company is listed on the NASDAQ stock exchange under the trading symbol “ATVI”, and has been a member of the S&P 500 since 2015.

Activision Publishing, Blizzard Entertainment, King, Major League Gaming, and Activision Blizzard Studios are Activision Blizzard’s business units. Treyarch, Infinity Ward, High Moon Studios, and Toys for Bob are among the additional studios owned and operated by Activision Publishing under the independent studios model.

They offer products and services such as premium full-games, free-to-play offerings, in-game content for purchase to enhance gameplay. which available inside full games as well as free-to-play offerings, and subscriptions for players in the World of Warcraft franchise. Call of Duty, World of Warcraft, Guitar Hero, Tony Hawk’s, Skylanders, Candy Crush Saga, Diablo, Hearthstone, Heroes of the Storm, Overwatch, and StarCraft are just a few of their signature product franchises.

Esports has been popular in the Call of Duty, Overwatch, and StarCraft franchises. Activision Blizzard Media Networks was formed as a new eSports division in October 2015.

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