The advent of video on demand services has fundamentally changed the way we consume television, but services such as Netflix and Hulu are already playing second fiddle to gaming.
This slice of information comes to us from Superdata which has taken a look at how gaming video content (GVC) on the likes of Twitch and YouTube compares with other content platforms.
The research reveals that GVC attracts 665 million viewers worldwide, more than twice the population of the US.
In 2016 gaming videos attracted 517 million viewers to YouTube with Twitch bringing in an additional 185 million. Netflix, for comparison, has only 93 million subscribers.
“Fans of games and gaming lifestyle opt for content made by relatable individuals as an alternative to legacy media,” says Superdata.
The research firm also looked at what the GVC market might be worth in 2017 based on data from 2015 and 2016. The short of it is that in 2017 Superdata forecasts that the market will be worth around $4.6 billion.
The lion’s share of that figure – 62% to be exact – will likely be generated by advertising while 7% or $329 million will come from sponsorships. Of course, these are not the only way for content creators to make money. Subscriptions and donations to creators will account for a respective $625 million and $793 million contribution to GVC’s market share this year.
“These young, tech-savvy consumers are leading the “cord-cutting” charge, and they are watching GVC instead of primetime TV,” explains the research firm.
“Companies that do not build relationships with these viewers now risk losing the next generation of high-spending consumers.”
And Superdata isn’t joking about “high-spending customers”. Average income of a GVC viewer in the US amounts to $58 000 and females represent 46% of the viewer base.
Gaming then is not just a great way to have fun but its also bigger than Netflix and in 2017 it could be worth more than football leagues like Bundesliga and La Liga.
And our parents said we couldn’t make money playing video games.