From marketing to monetisation The games video opportunity for games companies
The 20,000 foot view: Games-related video consumption is now as big as established TV and video genres. Despite games companies providing the fuel for the games video sector (i.e., games experiences, processed into content by creators), the monetisation is mostly enjoyed by established games video platforms. Games companies have an opportunity to deploy an additional interactive layer of experiences into video creation and consumption. In doing so, they can create incremental revenues for themselves and creators, and improve consumer experience without majorly disrupting the already established value and relationships with video platforms.
Methodological note: Whenever this report mentions ‘games companies’, it includes games publishers, developers, and publisher-developer hybrids.
of consumers watch games-related videos every month, which is comparable with the size of core fan bases of reality TV fantasy news and sports genres
of console gamers and of PC gamers watch games-related videos every month
- Most of games-related video monetisation happens on platforms such as YouTube and
- Games companies the opportunity to build up monetise games video experiences that not be offered on traditional platforms
- Incrementally generated sales can be shared with providing an additional, high-margin revenue for the creator sector of games video viewers buy in-game items every month
- A creator an average of views per could generate per year, assuming revenue share with a games and a conversion of of to average spend
- On average, each one million monthly active gamers a game has, its addressable in-game video opportunity is year
- Action, first-person and role-playing games are the suited games genres for the video opportunity
- Besides user size, the suitability of this depends on the type of (and its ‘streamibility’) and the of creator (favouring more game-specific with expertise)
- There is limited window of opportunity for companies to action this opportunity before video platforms improve their interactive features and optimise monetisation for creators
Companies and brands mentioned in this report: Activision, Facebook Gaming, Human Fall Flat, Microsoft, Xbox Game Pass, Roblox, Call of Duty, YouTube, Twitch