Gamers spend more time on social video than games: Are publishers missing out?

Our new report zooms in on the opportunity for game publishers to capture video-related consumer attention, generate new engagement, and unlock new revenue streams.

Ready to dive deeper? Download these free data-packed highlights from the report.

Game publishers have long used third-party video platforms such as Twitch and YouTube as a springboard for game promotion.

In return, Twitch and YouTube receive ad- and creator-driven revenues (like donations). The relationship has mostly been beneficial for both parties and influencers.

On average, gamers spend 8.5 hours a week watching videos on platforms like Twitch and YouTube – over an hour more than on games. These two entertainment segments are in direct competition. After all, consumer engagement is now a zero-sum game thanks to the oversaturated attention economy.

Games companies might be leaving engagement – and revenues – on the table

Not only do gamers spend more time watching social video in general, but games video viewing is widespread. Around 24% of console and PC gamers specifically watch game content at least monthly.

Valuable (highly engaged and high-spending) gamers are even more likely to watch, as you can learn more about in this free download.  

This underlines an opportunity.

The userbases of the largest game publishers / distributors are big enough to create their own video platforms alongside Twitch and YouTube, either within individual games (Call of Duty) or owned libraries of games (across the Xbox ecosystem).

Build around Twitch and YouTube – complementing, not competing

Publishers should build around, rather than against, other video platforms like Twitch and YouTube here:

• Publishers should provide streamers with an additional destination to better monetise their reach on mainstream video platforms
• Keeping active on established mainstream platforms lets creators reach a bigger and more diverse audience
• If confined to a single game’s integrated video platform, creators risk being siloed within a narrow audience (and will not bother with a new platform)
• Therefore, publishers could offer streamers a revenue share of in-game items purchased via their streams and other D2C revenue opportunities – the kind of remuneration platforms like Twitch cannot offer

But that is easier said than done. The full report dives deep into:

• An explanation of how an in-game platform could work logistically, in terms of best practices, engagement, monetisation, user acquisition, advertising, and creators
• Implications publishers should be aware of, like building alongside existing video platforms (not against), content moderation, not disrupting play time engagement, and who is best-positioned to seize this opportunity
• A suite of actionable data on gamers’  viewing behaviour by age bracket, social and game hours spent for more demographics, and viewers’ monthly spending on in-game purchases, compared to the average gamer (Q2 2024)

Twitch and YouTube are still important, and game publishers should continue nurturing those relationships

Despite the opportunity for in-game video content, platforms like Twitch and YouTube are a core part of gaming’s culture and marketing mix:

• Creators on these platforms have played a key role in user acquisition – and re-targeting – in games like Valorant, Fortnite, and Call of Duty
• A well-executed influencer partnership can effectively move potential customers from brand awareness to consideration or from consideration to brand loyalty
• But positive reviews from gaming content creators and streamers influence new-game purchases for just 11% of gamers in 2023 (14% for PC and 15% for console)
• Still, when consumers engage in parasocial relationships with video creators for specific games, the consumer’s identity, connection, and community around said game solidifies, strengthening a game’s cultural impact

Withholding content from these platforms would risk losing this third-party discovery and fandom channel, harming:

1. Publishers’ marketing and brand-building efforts
2. Fan experience and choice

But bringing things in-house can still be a net positive.

Still, as failed video experiments like Microsoft's Mixer have shown, platforms – not influencers – are also important to gamers.

That is why we would again like to highlight that building alongside third-party platforms is vital – as is emphasising social features, offering exclusive in-game boosters/cosmetics to acquire users, and consolidating content to cross-promote and build an ad network.

Social is eating into entertainment – this is a way for some game companies to bite back.

Download free highlights from the report here