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What you need to know about video game streaming business

Video game streaming has been generating a large amount of income for its streamers, which has created a large community for them. The e-sport has gained a lot of recognition, ranging from celebrities to even the former president of America, Barack Obama, who was given the title of the most video game-friendly president in US history, a title that he may retain for a while. Celebrities like Post Malone, Henry Cavill, Samuel L. Jackson, and Snoop Dogg are also huge streamers in the gaming community.

In 2001, WSBN, a Shoutcast station, was the first to use Windows Media Encoder and Divx to broadcast video game battles to about 50 viewers.

Then, in 2005, YouTube launched and completely revolutionized the game by enabling streaming directly over the internet without the need for additional software. It rose to become the most widely used video hosting service to this day, but when it comes to gaming and online matches, the site that has become the most popular now is Twitch.

In 2011 and 2014 it was when Twitch was launched and when on to become the most popular streaming site for games. Its founders started with something different from the site.

Their first project, Justin.tv which was launched in 2007, was also a streaming platform, but not generally for games. The users mostly made vlogs of their everyday lives.

Twitch, on the other hand, is primarily concerned with gaming. The site also came with live streaming, which made it possible to interact with the streamers and influence their gameplay. This increased engagement and the popularity of streamers.

A little while after the launch, the site introduced its partner programme, which allowed the streamer to earn money through advertisements just like on YouTube.

Streaming was more than just a pastime for most people; it became a side hustle and, for some, a primary source of income over time as the platform developed its currency, Bits, as well as an affiliate programme.

How do streamers make money?

Streamers make money in a variety of ways. Subscribers who pay a monthly fee, usually $4.99, to gain access to extra content such as streamer emotes, can contribute to their income. Tier 1 subscribers pay $4.99 per month, Tier 2 subscribers pay $9.99 per month, and Tier 3 subscribers pay $14.99 per month. Twitch partners who are not considered top-tier streamers receive 50% of the money generated from subscribers, while Twitch keeps the other half.

Twitch streamers earn an average of $2.50 per month from each subscriber. Top-tier streamers make 70 percent of the money generated from subscribers. Twitch will consider you a top-tier streamer once you consistently stream to over 10,000 viewers. The top-tier streamers make 3.50 dollars from every subscriber per month.

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Another form of income is advertising. A Twitch streamer has access to an advertisement button. They can use that button as many times as they please. So whenever an ad pops up on a stream, it is because the streamer uses that button.

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Youtube Ad

Most Twitch streamers publish their highlights to their Youtube channel since Youtube is a good way to draw in new viewers. This is because YouTube has an algorithm which Twitch does not have. YouTube can also help to promote the streamer and act as an additional source of funding for them, as it pays streamers around $4 per 1000 views on a video.

merch

Streamers always tend to have their merch. This might seem pointless to do so, but there are always loyal viewers who might want to support the streamer. This also doesn’t require any additional spending to produce, because anyone can start selling merch with print on demand.

It allows creators to place their designs on a product and sell that product online. When someone pays for the merch your print-on-demand service will take care of it and print and ship the product for you without charging you, and you do not need to pay for any monthly subscription for their service.

Sponsorships

Streamers have a massive influence on their audience. Since they broadcast to a vast majority of people in the community, they then appear on the radar of companies looking for someone to sponsor.

Streamers like Tyler Blevins, also known as Ninja, who is also one of the biggest names in the gaming industry, have gotten the title of the highest-earning streamer even through impressive sponsorships and brand deals.

EA allegedly paid Ninja $1 million to stream Apex Legends on launch day.

One of his most notable deals was with Mixer, which made him over 30 million dollars. In 2022, Ninja signed an exclusive contract with G-fuel. According to esports earnings, the Ninja has made a total of $280,313 from 53 tournaments.

It is said that he makes over $500,000 per month.

A report by a former Spotify executive has found that some artists are making vastly more income from Twitch live streams than from other music-streaming platforms.

Hip hop artist T-pain has created various streams of revenue outside of music, including NFTs and streaming platforms. In his appearance on “Steve-O’s Wild Ride! Podcast,” he said, “I’m making more off these video games than I’ve made in the last four years.”

US rapper Tee Grizzley entered the YouTube space of streaming video games for profit. The rapper claims he is making nearly $200,000 a month doing so.

The hustle has also created lucrative opportunities for those around him too. He stated that he has people who are around him that he got involved with streaming and now they make over $20,000 per month from just playing games.

It has also proved helpful in the black community, as it prevents the spread of gang violence and promotes the idea of ​​making money through legal and more reasonable methods.

There are Nigerians who have seen how profitable video games can be and have gotten involved. They play a variety of games ranging from PC, to console, to mobile games. Mobile gaming competitions have even taken place in games such as PUBG and Call of Duty Mobile. With cash prizes ranging from 50,000 to 150,000 naira.

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