YouTube said in a blog published on Friday that the new gaming service, called YouTube Gaming, will work as a video hub, which will have live streams, videos, and the biggest community of gamers “all in one place.” The gaming service will have over 25,000 games, each of which will have a page dedicated to it, along with different channels from various content creators and publishers
YouTube, for a long time now, has been trying to streamline its services according to the different needs of different customers from various demographic backgrounds, in order to push advertisers to increase their advertising expenditure for YouTube.
“YouTube is a mainstream website that mirrors the Internet population, and if you’re an advertiser, you spend a lot of time wondering how the hell you reach millennials,” said Scott Button, chief executive officer of Unruly Media, a UK-based advertising technology firm. “Gaming is a smart way of turning audience packaging into advertising to drive incremental dollars with a specific type of advertiser.”
By directing its investments to attract new viewers and advertising budgets, YouTube looks to become a direct competitor to the online giants including Facebook Inc. (NASDAQ:FB), Spotify Ltd., Amazon, and Hulu LLC. However, the closest competitor to YouTube’s new gaming channel is Amazon’s Twitch, which the e-commerce giant acquired for $1 billion in 2014. Google and Amazon have also been battling over television shows, premium movies, music, e-commerce, cloud computing, and now online games and the hardware required to play them.
The new gaming channel is a part of the efforts being made by YouTube to get the advertisers to increase the amount of advertising budgets. In similar efforts, YouTube has also launched another application specifically targeted at children who watch online videos.
"If you're running around in a horror game and all of sudden there's a gleaming Coke machine, it throws off the narrative," said Joost van Dreunen, chief executive officer at SuperData Research, a game analytics firm. "But advertisers know their way around sponsoring sports. People who watch sports are comfortable with watching advertisements."
The new gaming channel will provide similar services as Twitch, letting its users watch others play online games. Ryan Wyatt, head of gaming partnership at YouTube, said from a press event in Los Angeles: “YouTube is the best video game site out there. But we never built gamers the experience they deserve."