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Can YouTube Gaming launch knock Twitch out of the game?

By Jamie Hewett, client director

August 27, 2015 | 4 min read

Following Google’s attempt to purchase game streaming site Twitch last year for $1bn, it comes as no surprise that the tech giant is opening its own live games streaming portal through YouTube. The move sees Google go head to head with rival Amazon, which bought Twitch later in 2014 for $970m.

With a global presence, mobile apps and a directory of more than 25,000 games, each with their own profile page, it’s clear that Google has had a ‘no holds barred’ approach to its latest venture. But will this be enough to ensure YouTube Gaming will be a successful initiative? And just like Apple Music and Amazon Prime before it, the big question has to be does a second mover have enough of a reason to exist?

Gaming videos on YouTube are the second most popular search behind music, with more than 2.2 billion monthly views being generated by the 10 most popular games channels on the video platform. YouTube also has strong partnerships with top gaming publishers, which house all of their video content on the service, so there is a clear reason for the new platform to exist and progress into the live space.

Gamers are a loyal audience, suggesting that many who currently use Twitch to either stream their games or watch others play may not move. However, YouTube offers games publishers access to a wider, mainstream audience. In fact, YouTube Gaming itself will allow the casual gamer access to a community that they may have felt isolated from or unable to understand.

YouTube Gaming claims it will also introduce better moderation facilities, something that is being welcomed by some in the gaming fraternity who are tiring of Wild West aggressiveness. It will also play well with parents, who don’t want to curtail their children’s enjoyment of live streaming, but want to know that they are safe. Gaming is now clearly a mainstream activity, so this will surely be to YouTube’s benefit.

We also need to bear in mind that YouTube offers access to the mainstream through PlayStation and Xbox, with both consoles offering a pre-loaded YouTube app, which could potentially see YouTube Gaming joining alongside it. As it currently stands, both consoles offer a shared functionality through YouTube, allowing gamers to upload content directly from their game. It’s clear that the next natural stage is to integrate live streaming through this process.

Twitch may have the head start when it comes to live streaming, but ultimately, YouTube has a much wider reach. In 2014 Twitch had 100 million unique viewers per month and 1.5 million unique broadcasters a month. YouTube has more than one billion active users and 4bn video views a day. If scale wins wars then the Google-owned company could triumph.

User experience will also be key, and with two major players fighting for the same piece of turf, gamers should ultimately be the winners if they spur each other on to greater innovation. It is likely that both platforms will co-exist for a time before a clear winner emerges. For now, it’s a case of let battle commence.

Jamie Hewett is client director at Five by Five

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