Exploring the Feasibility of a New Business Model in Videogame Streaming

Abstract

Live streaming is the practice of broadcasting live video from a device such as a computer or gaming console. “Streamers”, those who broadcast video, often do so of themselves playing video games or chatting with followers in real-time. This study explores the feasibility of the new business practice for video game streaming websites (also known as “platforms”) in which these websites contract streamers to stream exclusively on their platform. The point of this model is to maintain competition within the market as viewership becomes increasingly concentrated and heightens the importance of live streaming platforms to retain high-profile talent. Discussed throughout this paper are the current business models that streaming platforms utilize to generate income, with the industry-leading streaming platform Twitch being the focus of study. The study offers a critical analysis of the methods and perks these companies use to capture streamers on their platform. Research was conducted utilizing a mixture of online academic databases, reputable news articles, statistics, and case study. An online survey of Reddit users is used to better understand whether viewers of video game streams would support streamers financially by continuing the common act of donating to the streamer even after the streamer has been signed to a platform and guaranteed a source of income. This examination of the video game live streaming industry concludes with a determination of whether contracting streamers will develop into an industry practice or stand as an anomaly that is fated to fade away as the market grows.