Business Overview

Live streaming business owners make money by broadcasting live video gaming footage on popular platforms while making use of ad revenue. Popular websites like Twitch.TV and Smashcast (formerly Azubu) create great platforms for gamers to share their content. By acquiring a large following, (500+ average for Twitch.TV) the player becomes qualified to become a partner for the live streaming site. The streaming site will pay based on the internet traffic for the individual’s channel. Live streaming channels also solicit donations from their fans.

Who is this business right for?

One prerequisite for a successful live streaming business is to have top-level gaming skills in order to gain a following of viewers who will take time out of their day to watch and learn gaming styles from the streamer.

What happens during a typical day at a live streaming business?

Each day a professional streamer needs to answer the comments and emails from fans and make updates on Twitter. Then, the streamer needs to update news and perhaps make a posting of previous game play on social media. After this, the streamer plays video games live for the audience to watch according to a pre-announced schedule. The streamer may play continuously for many hours (up to 18 hours in a row).

The average gaming session is at least four hours long. It is best to play continuously to keep viewers interested and take as little time out for intermissions as possible. The most popular streamers usually eat and go to the bathroom without stopping the gameplay. The typical times of day for gameplay start in the afternoon and continue until late at night or even until the next morning.

What is the target market?

The customers are video game enthusiasts who want to learn how to become better players by watching how professionals play certain games.

How does a live streaming business make money?

The revenues come from advertisements, profit-sharing from channel subscription fees, sponsorship, in-person appearances at events, and earnings from winning game tournaments.

What is the growth potential for a live streaming business?

Using Twitch.TV as our example, there are about 14,000 professional streamers on the system. Each month, Twitch.TV has about 100 million unique visitors. Dividing those visitors by the number of streamers, shows there are about 7,000 visitors per streamer. This number continues to grow each year.