Streaming – Ads for revenue

make money
Posted under: Digital Natives 29th of June, 2012

Streaming media is multimedia that is constantly received by and presented to an end-user while being delivered by a streaming provider. The verb “to stream” is also derived from this term, meaning to deliver media in this manner. With streaming, the clients media player can start playing the data before the entire file has been transmitted.”

While not yet a mainstream media, streaming has become a viable source of income for professional and ‘local’ users alike.  Streaming to bring Television shows to the Internet and then viewed from computers has been done by large broadcasting companies for a while now. As with free to air Television, corporations still make money from the advertisements they show alongside them.  So, where does a small time user find the money and resources to put up their own stream?

Enter streaming platforms like (formerly Justin.TV) and own3d, which allows users to broadcast their streams onto their site, where other users may view it.  It costs nothing to sign up, to use, or to view other users, so how do these platforms make money in order to provide these services freely? Advertisements.  Much like free to air TV, companies pay substantial amounts of money in order to have their ads and brand names placed all over the site.  By partnering with these streaming platforms, users  are able to earn money based on the amount of viewers watching their individual streams.

Each site has their own partnership and payment schemes, but they pay around 2 to 3 dollars for every 1000 ad impressions.

The simplest formula is

Earning = ($0.002 x viewers) x advertisements played over the course of the stream.

This gives the total amount earned by a streamer after a single streaming session.

Using Destiny’s(professional StarCraft2 Player) numbers, of approximately 3000 viewers per a stream, and if he plays 5-6 advertisements every hour over the period of 6 hrs of streaming, he makes around $200 dollars a stream or a day by conventional standards.

He believes that someone with as few as 500 viewers could make a living off of streaming.

So with all this in mind, by using either of the two popular streaming sites (own3d and a user with 500 or more concurrent viewers, streaming 5-6 hours a day, is able to make an income.

But how does any individual become popular enough for people to ‘want’ to watch their stream more than others, and why do people (specifically gamers) like watching streams in the first place?

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