It’s safe to say the inaugural Fortnite World Cup was a resounding success. Developer Epic Games has announced that more than 2.3 million people watched the solo final on Sunday evening, making it the most watched esports event ever outside China. The complete total is likely to be significantly higher, as that figure only includes viewers who watched through Twitch and YouTube and not those who watched within the game itself or other streaming platforms.

Epic was helped by the huge popularity of Fortnite, and while Twitch viewing figures and monthly revenue have fallen slightly over the last year, it remains one of the most popular games in the world with 250 million players and a vast roster of hugely influential streamers and YouTubers attracting massive audiences with their Fortnite broadcasts.

The event was also expertly handled and directed as a viewing experience. The main events were preceded by coverage of the celebrity-packed pro-am and unpredictable creative tournaments, which took place on Friday, setting the fun tone of the proceedings. On Saturday and Sunday, the solo and duo finals were held over six matches, making for four hours of viewing time each. Players could choose their own streams based on favourite players or geographic regions, while the main stream switched smoothly between well-known players, interesting encounters and larger overviews of the map, showing where the hotspots were. It made for an exciting and involving broadcast, aided by expert commentators and well-chosen replays.

Expertly directed ... the Fortnite World Cup at the Arthur Ashe stadium, Flushing Meadows, New York. Photograph: Epic Games

Viewing figures are rising across the sector. According to analyst Newzoo, more than 380 million people watched esports in 2018 and the company expects that figure to rise to 550 million by 2021. Whether those audiences are watching Fortnite, League of Legends or Counter-Strike, the numbers hold interesting lessons for traditional sports, where viewing figures among younger viewers are declining.

Quick Guide What is Fortnite? Show What is Fortnite: Battle Royale In short, it's a mass online brawl where 100 players leap out of a flying bus on to a small island and then fight until only one is left. Hidden around are weapons and traps, and players must arm themselves while exploring. When was it released? Fortnite started in July 2017 as a four-player cooperative survival game, but the game's developer, Epic, noticed the huge success of PC title PlayerUnknown's Battlegrounds (PUBG), which pits 100 players against each other, and decided to release a new version. How much does it cost? The game is free and players are able to unlock new items as they progress without paying anything. A Premium Battle Pass gives access to exclusive clothing and items. However there is an in-game currency, V-Bucks, which players can use to buy additional custom gear. It is how this currency is paid for that has become the centre of a dispute between Fortnite's makers and Apple and Google. Why is it so popular with kids? It's free, it's fun, and it has a very silly, offbeat sense of humour. While PUBG has a serious, realistic visual style, Fortnite: Battle Royale has very bright, almost cartoon-like graphics, as well as loads of ridiculous items and costumes, such as space suits and dinosaur outfits. Players can pull a variety of dance moves, and team up with a friend to compete as a duo or a squad. Participants can chat as they play using headsets and microphones. Is there violence? And is it addictive? Although Fortnite is a multiplayer shooter, it does not depict bloody violence. It takes lots of enjoyable gameplay concepts from more mature shooting games but places them in a non-threatening, non-realistic world. In terms of addictiveness, Fortnite contains nothing that makes it different from other action video games. It's more that the game contains many different elements – nice visuals, good shooting mechanics, an interesting building component and lots of support and interest from YouTubers – into one package that is free to download. Photograph: fortnite

Crucially, fans could watch on consoles, phones, laptops or tablets by choosing their own streaming services – there was no restriction to one format or provider, such as with Sky or BT Sport. At a Bafta Innovation event in January, sports broadcasters from around the world met to discuss the state of the industry and agreed that millennials (and their generation Z successors) are watching less traditional broadcast sports content via terrestrial, cable and satellite TV and more through streaming services and YouTube.

The Fortnite World Cup also placed a huge emphasis on social media interaction. Viewers were encouraged to use the competition’s hashtag, while dozens of leading YouTubers and streamers were at the event providing coverage and commentary across their own channels, boosting the audience. Most of the competitors are also streamers with their own large communities – they are not just athletes, they are entertainers and brands. Last week, New York-based market analyst YPulse published a report on how generation Z and millennial viewers are keeping up with sports news. It discovered that most were going to social media and the streaming accounts of their favourite teams and players rather than traditional broadcasters.

Welcoming feel of a well-run fan event ... Fortnite cosplayers in Central Park, New York. Photograph: Epic Games

Many more are keeping up to date with sporting events via Twitter, Instagram and Facebook and to appeal to these audiences, sports tournaments will have to keep an eye on esports and continue to diversify and innovate in their use of these channels. The recent Fifa Women’s World Cup was a good example, with several teams and star players running busy social media feeds throughout the competition, sharing video and interacting with fans. Megan Rapinoe drew huge global attention to the event with her personality and media presence. She is a truly modern sports star: an outspoken digital native with something to say other than: “I’m over the moon, the lads have done great.”

By mixing in star YouTubers such as Ninja and ONE_shot_GURL with young competitors and a lot of cosplay and hints about the forthcoming season 10, the Fortnite World Cup had the welcoming feel of a well-run fan event rather than a standoffish global sporting occasion. It was entertaining and exciting but also interactive and a bit goofy. The matches were brilliantly directed to help viewers keep track of the action and key rivalries amid the chaos of 100 people fighting on a large map. There was much to take away, both about how esports will work going forward and about what traditional sports providers will need to do if they want to reach millennial and generation Z viewers who lapped up this exuberant event.