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.

Key Insights

           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