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The Promotional Effects of Live Streams by Twitch Influencers

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  • Yufeng Huang

    (University of Rochester Simon Business School, Rochester, New York 14627)

  • Ilya Morozov

    (Kellogg School of Management, Northwestern University, Evanston, Illinois 60208)

Abstract

We study the effect of video game live streaming on the popularity of broadcasted games. To this end, we collect novel high-frequency data from Twitch.tv , a major video game streaming platform, by monitoring live streams of 60,000 popular streamers every 10 minutes for eight months. To estimate the effect of live streaming, we leverage these high-frequency data and isolate plausibly exogenous within-day variation in the broadcast hours of top influencers. We find that the number of people watching a game in live streams increases the concurrent number of people playing it with an elasticity of 0.027, a moderate effect that dissipates within a few hours. Investigating the mechanisms behind live streaming effects, we find evidence that live streams make consumers aware of games by lesser-known publishers and reveal the quality and match value of games to consumers. Our back-of-the-envelope calculations suggest that, despite the general excitement about live stream promotions in this industry, only about one sixth of all games profit from sponsored live streams.

Suggested Citation

  • Yufeng Huang & Ilya Morozov, 2025. "The Promotional Effects of Live Streams by Twitch Influencers," Marketing Science, INFORMS, vol. 44(4), pages 916-932, July.
    • Handle: RePEc:inm:ormksc:v:44:y:2025:i:4:p:916-932
    DOI: 10.1287/mksc.2022.0400
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