Revenue — Where Game Developers’ and Streamers’ Interests Align
There are many ways to get rich on Twitch — and plenty of ways to stay poor. Luckily, new technologies are letting both gamers and developers alike enter into a cool new world of gaming that can be the key to unlocking new revenue opportunities.
Amazon-owned Twitch is, undisputedly, the most popular platform for online video streaming. Its direct competitor, YouTube Gaming, experienced greater user growth in recent years, but it’s Twitch that generated 96% of the tip revenue, monetizing better while retaining a loyal — almost rabid — viewership.
Why are Twitch game streamers faring so well?
Twitch as a Social Network
We love watching experts in their element, be it cooking, gaming, or sports. Most visitors begin visiting Twitch for the games but, slowly, favorites come to the fore. Options like follow, direct message (DM), chat rooms, and the Pulse feature that lets users like, share, and comment on shared content, all contribute to the experience.
In other words, you make friends of the steamers on Twitch, whether you’ve met them in real life or not.
Going back to that feeling of camaraderie the old arcades invoked, the digital platform returns the sense of community to gaming thanks to huge viewer engagement and follower loyalty. Twitch’s spokesperson, Chase, told The New Yorker: “We’re essentially a social network for the gaming age.”
So how do you monetize fandom?
Monetization on Twitch
To generate income from live streams, Twitch offers two options. Certain requirements determine if you can become a Partner or an Affiliate, and depending on that the sources of your revenue vary.
Twitch streamers can rely on:
- paid subscriptions
- cheering (tips in Twitch currency called Bits)
- game sale revenues
- advertising
A number of streamers also make a living through regular donations, sponsorships, and affiliate sales of non-game products. It’s a lot of work on the part of streamers who often need third-parties to help take care of business.
Potential for Development
Twitch’s game streaming experience could use a personal touch. Giving away games for free to Twitch Prime customers is one way to show appreciation, but game developers now have an opportunity to tap into this ever-growing gaming video content industry on a more intimate level.
Instead of relying on disruptive ads — once a necessary evil — to generate revenue, the alternative entails turning toward to the blockchain. A new loyalty platform rewards gamers for their time spent playing the game and exhibited skills by unlocking new levels. At Monetizr, for example, we add a new layer to the gamer experience by trading digital time and skill for game-related physical merchandise or sponsored goods (with the ability to use credit/debit, Apple Pay, or cryptocurrency).
At the same time, this gamer engagement benefits developers who can increase revenue and extend the lifecycle of a game through creative means other than the advertising.
After all, the more you reward to play the better — and more loyal — the players become.
There is room for change in the way we play, sell, and stream games. New rewards and technologies can open up treasure chests of new possibilities and could change gaming forever — and even create a new monetized class of gamer. It’s a strange new world — and pretty fun, too.
Interested in learning more? Let’s connect!
