Streamers are no longer exclusively defined as the long, narrow strips of decorative material used in celebrations and other special events. In the era of the internet, streamers are individuals who spend their time creating content for a community of engaged and passionate fans. Many streamers broadcast themselves playing video games to live audiences, while others hold virtual cooking demonstrations or simply chat with others. The video live streaming industry is worth approximately $70 billion and is projected to grow to $224 billion in the next seven years.
Advertising is a common way to make money as a streamer, particularly for those who have an established presence. Advertising may appear before, during, and after a live stream, with most streamers making around 10 to 30 cents per ad view on YouTube.
On the Twitch platform, advertising fees vary according to the season and demand. However, advertising revenue is typically between $2 and $10 per 1,000 views.
Some streaming platforms also run exclusive partnership programs for their very best streamers.
The Twitch Partner Program is an invite-only scheme designed for streamers who built their community from scratch. Streamers get access to additional revenue streams such as a three-tiered monthly subscription model and the ability to run video commercials. They also get access to custom subscriber badges and emotes, which we will talk about in more detail below.
It is estimated that the top ten Twitch partners gross an estimated $20 million.
Streamers also make money via fan donations.
Twitch users can cheer on their favorite streamers by purchasing a virtual good called a bit – equivalent to $0.01. In return, streamers can customize their channel and reward their most supportive subscribers with a range of emotes, which are Twitch-specific symbols used to express a range of in-chat feelings and emotions. These two acts work to reinforce each other, increasing fan engagement and increasing revenue across multiple channels.
YouTube does not have an in-built donation system, but many streamers there take donations via Patreon or Streamlabs instead.
For Twitch users, subscription income is a significant source of revenue. They earn 50% of all subscription fees which are offered in increments of $4.99, $9.99, and $24.99 per month.
YouTube gamers can also offer paid subscriptions, though the streamer must have at least 30,000 subscribers and be a YouTube Partner. Creators decide how much they will charge subscribers and what perks subscribers will receive across the various tier options.
As you may have guessed, video game sponsorships are the most common. These brands may send the streamer products to use or promote to their audiences. Alternatively, some brands will pay for the travel expenses and sign-up fees associated with the streamer participating in a tournament or competition.
Provided they meet certain criteria, streamers can sign up for an affiliate program and promote Amazon products through their channels.
Betting is another source of affiliate income that is starting to become more popular. Professional players and esports athletes are partnering with betting providers to allow bets to be placed on in-game outcomes during live streams. In exchange for sending users to the betting site, the streamer takes a cut of the revenue.
YouTube streamers can choose up to 12 items to display on a merchandise shelf provided they source their products from a list of partnering suppliers.
Many Twitch users also sell a range of branded and highly personalized merchandise, though the process there is a little more involved. Streamers will be required to design their goods through a service like Canva and then sell them through an eCommerce platform such as Shopify or Redbubble.
- The video live streaming industry is worth approximately $70 billion and is projected to grow to $224 billion in the next seven years. The ways streamers make money today are as interesting as they are varied.
- Streamers utilize video advertising, which is shown before, during, and after live streaming events. For larger audiences, fan donations and paid subscriptions are effective ways to make money.
- Streamers are also sponsored in short and long-term arrangements by industry or niche-related brands. Others prefer to earn revenue by engaging in affiliate marketing. Merchandise is also a worthwhile income stream, despite it being the most labor intensive.
Connected Revenue Models
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