Entertainment :- Twitch

Hello people, as the entertainment paradigm is shifting towards live gaming and streaming over movies and web series, here are some astonishing statistics data about the live streaming gaming business in the last couple of years. As per the CNBC report, in 2019, only the gaming industry generated revenue of 185 Billion Dollars, which is way more than the combination of Netflix, Amazon Prime, Disney, and cache over here is; it is predicted that in the upcoming years these figures could double. Here I would like to share with you about one of the fastest-growing gaming platforms named “Twitch”.

First of all, before diving into the business model of Twitch, there are several things that are important to keep in mind which are other associated aspects of gaming. Starting with developers and publishers which combined start some leagues like “World eSports League” where many professional players such as Ninja or Richard Tyler Blevins and Myth (Ali Kabbani) show their skills. Moreover, the next aspects of streaming generated by broadcasters and streaming platforms like YouTube streaming, twitch, Beam, and HitBox and all these aspects attract an audience through marketing and ads. Because it is as simple as more fans mean more visibility, which even engages more sponsors ended up creating tons of money for players, league organizers, and streaming platforms.

Secondly, in the case of Twitch, it works on a monthly fees model, where there are 3 tiers. The first one is for $4.99 a month; the second is $9.99 a month, and the last one is $24.99 per month. For all the subscribers’ Twitch took its part of 50% and the other half is paid to streamers. Moreover, the major revenue comes from the advertisement, where it has CPM-based calculation which means if a website charges $1 CPM then for every 1000 impressions an ad gets, the website earns $1 in revenue. Importantly, users can donate some amount to the streamers via PayPal For this, a micro-currency has been introduced named “Bits”, and people can donate as small as $0.01 per bit, which again creates a large portion of revenue. Finally, in recent years selling merchandise products on live streaming has become popular; fans can buy official apparel from Twitch stores, which again generates $2.5 per transaction for Twitch.

Finally, tech giants like Facebook, Google, and Microsoft have already started to take gaming to the next level using Metaverses and Cryptocurrencies, where people can buy tangible assets like NFTs, Virtual lands, and anything one can assume having in real life. Twitch already has created its own Metawars named “Roblox” where players can spend money on buying assets for their weapons or clothes which are again tradeable within Roblox using Bits. Hence, there are mainly five ways in which Twitch generates its revenue.