For non-gamers, there are few things more mind-numbing than watching someone play a videogame (unless its watching someone play golf). But don't tell that to the 20 million people who flock to livestreaming site Twitch each month to stare wide-eyed at other people doing battle on screen. Apparently someone thinks there is scads of money to be made in all that glassy-eyed action. Twitch (formerly called Twitch.tv) just raised $15 million in funding from Bessemer Venture Partners, Alsop Louie Partners, and Draper Associates. That brings its total funding to $23 million. To remind you one more time: It's a site where people watch other people play video games!
In 2011, San Francisco-based Twitch spun out of livestreaming company Justin.tv, where people stream videos of themselves cooking a gourmet meal, playing soccer, or just kicking back to watch TV. After Justin.tv launched in 2007, its video game section, where people broadcasted their gameplay, took off faster than any other genre. Justin.tv co-founders Justin Kan and Emmett Shear decided to roll up the videogame channels into a single site, and Twitch was born.
Twitch offers live streams of gamers playing newer hits like Borderlands 2 and Minecraft, and classics like World of Warcraft and Super Mario. Spectators can chat with each other and the player, sharing the excitement after a big win or offering sympathy (and a dash of taunting) when a gamer fails. Right now, the majority of streams are from PC games, since they are the easiest to capture and broadcast. But Twitch is already in talks with game developers and console manufacturers to add video streaming technology across the gaming board.
Since the streams and videos on the basic Twitch offering are free to watch, the company makes the bulk of its money from advertising. It also offers HD, ad-free subscriptions for streams from selected popular users or competitive gaming organizations. It's putting its new round of funding toward generally improving its custom-made video platform, and launching a push to attract international viewers.
Sure it's easy to scoff at people with nothing better to do than watch someone else play a game, but there is a huge number of people who love it. There are millions of walk-through videos, trailers, promos, and game-play videos on YouTube. It's such a popular genre that YouTube has dedicated an entire category to gaming. Competitive gaming tournaments around the world can draw millions of viewers – especially in countries like South Korea where video game playing and watching is a national obsession. Watching a battle between a Death Knight and a cloud serpent in World of Warcraft might sound as exciting as watching the proverbial grass grow. Fair enough, but the only green investors see is the shade reflected by mountains of cash.
