Video-game-streaming service Twitch just announced that it will acquire GoodGame, a full-service agency dedicated to serving the needs to pro-gamers and brands looking to be involved in the eSports industry.
GoodGame has built a business over the last 10 years by sponsoring its own competitive esports teams, connecting brands with popular third-party teams, creating viral content for brands looking to market to gaming enthusiasts, and more.
“We’ve been responsible for funneling more than $10 million toward players, teams, tournaments, and other parts of the esports ecosystem,” writes GoodGames CEO Alex Garfield in a letter on the company’s site explaining the sale.
The move lets Twitch capture more of the value generated by the growing esports industry, which has already been a huge key to its success — on any given day, Twitch regularly has more people watch League of Legends than concurrently watch major news networks.
With GoodGames on its team, Twitch can further ingratiate itself in the business of running teams and getting money to professional gamers. That in turn makes these popular streamers more likely to stick with Twitch when showing off their gaming chops, rather than jumping over to competitors like YouTube or Steam Broadcasting.
It also expands Twitch’s interactions with big brands. While Twitch already makes it very easy for Twitch partners (users with a large number of subscribers) to make money by playing video ads on their streams, there’s likely ample room for Twitch to move up-market in terms of quality and revenue thanks to its huge audience and focus on video content. GoodGame’s team brings with it existing working relationships and an expertise in pitching the gaming audience to companies with big budgets for brand advertising.