The upcoming launch of Stages by Google is causing a lot of noise and scepticism.

But there is not much discussion in the streaming community. For the time being, Twitch is comfortable and has mastered the market. But the scene could shake them awake as soon as this year ends.

In its opening speech, Google emphasized how the stadiums will influence YouTube and the creators of content. But this was overshadowed by a discussion about whether Google’s game streaming service could work on a scale that could become a console killer.

So let’s jump in and see what Stadia brings to the table and why the banners should pay attention to this beginning.

TL; DR:

  • Google has confirmed that one of the objectives of Stadia is to increase the share of YouTube in the game content market.
  • YouTube is currently the number 2 platform with a large inventory. They are gaining popularity in Twitch, both in the banner market and in the viewer market, quarter after quarter.
  • More details. This allows developers to reach a larger number of players. You can also reward content creators who support their games. This means more money for streamers (a possible competitor of Twitch Prime).
  • YouTube’s content discovery algorithm solves a problem that Twitch has to solve. Small and medium sized banners can be exchanged if they feel they can be seen more quickly.
  • Stages will present new tools and functionalities for streamers. This allows them to create and share unique content to broaden their audience.
  • YouTube can conquer the growing market for new streamers by lowering start-up costs and entry barriers.

What is the relationship between stadiums and Twitch Streamers?

If you are not yet familiar with Stages, it is a Google cloud gaming service. Players can open the Chrome tab on any computer, laptop, smart TV and even a smartphone and play games for Triple-A developers. If you want to know more, you should check out this full version. Or read the full text.

Stages have been created taking into account the wishes of YouTube and the authors of the content.

Ryan Wyatt, Global Head of Games and VR on YouTube, says he is focused on building the capacity of creators to bridge the gap between content and viewers.

The Case For Why Stadia (Not Mixer) Is Twitch’s Biggest Threat

Stages aims to enable creators and audiences to reach new heights by overcoming the barriers of content capture and creating unique opportunities for interaction and growth with the creator-public.

He keeps talking:

Authoritative creators will have new ways to communicate and make money on YouTube using the features of Stadia. And with newcomers, we will overcome the barrier of entry into content capture and give you the ability to show, transfer and capture content directly from the stadiums. (My accent)

MatPat himself, the creator of the popular game theory channel (with 7.9 million subscribers), shared his vision:

I was surprised at the influence that [Stadia] can have not only on the players, but also on the creators. The stadium not only allows me to easily create and share my work, but it also opens up totally new possibilities for me to connect more strongly with my audience.

The Case For Why Stadia (Not Mixer) Is Twitch’s Biggest Threat

This clearly shows that stadiums are two multilateral approaches for Google. They have built-in tools and features that help broadcasters and content creators do what they do best. And so they hope to conquer a larger part of the spas market.

Current market share YouTube

Despite all the hype about the Ninja mixer, YouTube is still number 2 in the world of streaming games. And they’re slowly catching up with Twitch every quarter.

According to a report by Streamlabs and Newzoo, YouTube’s live audience grew to 24% of Twitch in the first quarter of 2019. The mixer is a large third, representing only 3% of Twitch’s audience.

It is also a good place for small banners because they are less saturated. The average number of viewers at a time is 52.2 on Youtube, compared to 26.1 on Twitch.

The Case For Why Stadia (Not Mixer) Is Twitch’s Biggest Threat

Twitch takes the lion’s share when it comes to the number of viewers and banners. We’re not even close. But YouTube is on it and gaining market share.

YouTube algorithm and Twitch detection problem

Content recognition is performed on the YouTube platform.

It’s a challenge Twitch is always trying to take on. They are now trying to do this through the proposed channels. But that’s just scratches on the surface of the problem.

Twitch has no algorithm to evaluate the quality of content beyond the number of views. Their only interest seems to be the games in which the spectator is involved. This makes it particularly difficult to propose new relevant flows.

Meanwhile, twitch streamers are even using the opening of YouTube for their recordings. This is one of the best ways to increase your audience.

And that’s why a lot of the content on Twitch is on YouTube. In 2018, more than 50 billion hours of game content was viewed on their platform on YouTube.

Imagine the same algorithm working for you as long as you’re alive. Or when you watched one of your videos on YouTube, a warning appeared that you were live.

By connecting Stages to the YouTube algorithm you have a natural way for streamers to get more attention. Viewers never run out of quality content and their time on the platform increases. It’s a victory.

Monetaryisation, data and growth of the sector

Twitch gives streamers the minimum amount of data. This makes it difficult to make analytical decisions.

  • Where does the audience come from?
  • How many spectators were left when I changed the game?
  • How many viewers have seen my catchy name?
  • How long does the average viewer watch?
  • What time of day? What part of the river?

The answers to these questions will help the banderole to develop. And you can answer many of these questions using the data that YouTube already provides to its creators.

But one thing that attracts the attention of a casual observer is something that data developers have access to.

The Case For Why Stadia (Not Mixer) Is Twitch’s Biggest Threat

By clicking the Play button, the game developer now has a traceable source.

He’ll tell them:

  • They buy their game there.
  • Who or what is responsible for the influx of players.
  • Or even where their most valuable customers come from.

It’s a double-edged sword. The stadium will have no problem to attract the attention of the developers with this data. And now the developers get a chance to reward the fans of their game.

The developers know which content, channels, influencing factors or events are responsible for their influx of sales or users.

You can use this information to conduct targeted advertising campaigns or to develop sponsorship agreements. The ability to allocate sales to the platform makes it easier to justify the marketing budget.

In the end, it means more potential money in the makers’ pockets.

If you’re wondering how YouTube can compete with Twitch Prime, it’s a possibility. Creators could monetize their channel by promoting the games they play. If someone watches the match (through the stadium!), the creators get a percentage of the sales.

This is an advantage that no other streaming platform can compete with.

Streaming functions for public connection

Merging the game platform with the content platform enables a unique interaction between the audience. The Crowd Play is the first instrument to be announced. Leave the audience in line and take part in the banner games.

We have already seen the effect of the cooperation between the banners and the public. An excellent example is the creative content of CDNThe3rd with H1z1. By allowing streamers with private servers, he was able to create custom game modes that his audience could enjoy.

These are some of the strengths he’s been able to achieve:

All these unique contents show his work. It also allowed his audience to interact with him at a higher level. Passive viewers also benefit from receiving new and interesting content that they can adapt.

The availability of such integrated tools in the stadiums allows the authors to create more interesting content to share. In return, viewers keep coming back for new content and the streamer can expand its audience.

General status of the game

Another such instrument is the sharing of the status of the stadium. You can save copies in the game where other players can play exactly the scenario you saved. You save an instance and a shortcut is created that you can share. When someone clicks on this link, it will be inserted in the same copy. You will feel exactly the scenario you have just encountered or created. (Players in the back can finally hang up or shut up!)

The Case For Why Stadia (Not Mixer) Is Twitch’s Biggest Threat

The creators will no longer limit themselves to sharing video content. We will see a lot of creativity in marketing as developers develop their brands and create game content for interaction with players.

Devin Nash (streaming industry director and experienced as former CEO of Counter Logic Gaming) has a passionate understanding of what stadium functionality can do for gaming and content creation:

The streaming capabilities and the way you connect to YouTube will have a significant impact on how the game develops in the future. Google is now ready to take responsibility for streaming and content generation. He continues with the video that interests him to see how Amazon and Twitch manage to react.

New banner Reduced entry barrier

An important obstacle for a newcomer in the field of streaming is the budget for the equipment needed for streaming.

For demanding computer games, you need a powerful installation, just to play in a good environment. Additional computing power is then required to capture and distribute the content. And if you want a high quality stream (1080p, 60fps), you probably want to look at the dual PC configuration. It can get expensive very quickly.

Of course, you can do it from the console. But the difference in quality is immediately noticeable. And that’s nothing compared to what you can do with a PC equipped with broadcast software.

Stadiums immediately reduce the need for expensive equipment. The servers take care of the complete processing of the game.

The Case For Why Stadia (Not Mixer) Is Twitch’s Biggest Threat

But with an extra step forward, you can also transfer the complete processing of the data streams to the Stages servers. This would reduce the need to use only one continuous webcam, as Philip Thomas mentions in his article. This is what modern computers can handle with ease.

You implied this ability. However, Google has not yet provided complete information about its plans. If that’s where they’re headed, that’s something Twitch can’t stand. This will give Google a better chance to conquer the new banner market.

You’ve already proven that this strategy will work. Mobile streamers are likely to be chosen as YouTube platform. This is probably due to the easy-to-use send button built into the applications, as explained in this Newzoo report.

If it’s the reduction in friction at the beginning of the stream that makes mobile streamers choose YouTube over Twitch, they already have a success formula for Stages.

What YouTube should do correctly

Stages comes with many tools and functions that can distract the attention of Twitch.

But one of the obvious problems is the current state of their platform. This is the first complaint you will hear from streamers when you go to YouTube as a streaming platform. This leaves a lot to be desired compared to the Twitch and Mixer functions. Therefore, it is still considered a static content platform in the streaming community.

The Case For Why Stadia (Not Mixer) Is Twitch’s Biggest Threat

Until that changes, there will be some resistance in the streaming community. But even with this perception, YouTube continues to gain popularity in the data streaming market.

If Stages contributes to the change in market share, it is not surprising that modernisation is being initiated. They are waiting for new tools and new possibilities for banners. But in the meantime, we have to wait and see if there’s anything they can do.

If they don’t decide to go to him, he can keep the banners at the fence. Their perception of the platform may be enough to keep them where they feel comfortable.

Also with all updates and features of the stadiums mentioned in this article. It’s not easy to get someone back. YouTube should reduce friction and imitate what the audience likes about the platform.

Final reflection

It is not for nothing that Twitch is currently market leader. They have created an excellent platform that is easy to use by both streamers and viewers.

However, there are still problems that their users want to see solved. So far they are in no hurry to solve this problem. With Stages on the horizon, it will be interesting to see how Twitch reacts.

In any case, it will be an exciting end of 2019 and 2020 for the power industry.

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Why the stage (and not a mixer) is the biggest threat to Twitter.

BITCHES…

– (@gameonaire) 18. September 2019

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