From marketing to monetisation The games video opportunity for games companies

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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 the games-related video monetisation happens on video platforms such as YouTube and Twitch
• Games companies have the opportunity to build up and monetise games video experiences that could not be offered on traditional video platforms
• Incrementally generated in-game sales can be shared with creators providing an additional, high-margin revenue channel for the creator sector
       of games video viewers buy in-game items every month
• A creator with an average of        views per day could generate        per year, assuming a        revenue share with a games company and a conversion of        of views to        average spend
• On average, for each one million monthly active console gamers a game has, its total addressable in-game video opportunity is        per year
• Action, first-person shooter and role-playing games are the best suited games genres for the games video opportunity
• Besides user base size, the suitability of this opportunity depends on the type of game (and its ‘streamibility’) and the type of creator (favouring more game-specific creators with expertise)
• There is a limited window of opportunity for games companies to action this opportunity – before video platforms improve their own interactive features and optimise monetisation opportunities for creators