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In-game app-development platform Overwolf acquires CurseForge assets from Twitch to get into mods

Overwolf, the in-game app-development toolkit and marketplace, has acquired Twitch’s CurseForge assets to provide a marketplace for modifications to complement its app development business.

Since its launch in 2009, developers have used Overwolf to build in-game applications for things like highlight clips, game-performance monitoring and metrics, and strategic analysis. Some of these developers have managed to earn anywhere between $100,000 and $1 million per year off revenue from app sales.

“CurseForge is the embodiment of how fostering a community of creators around games generates value for both players and game developers,” said Uri Marchand, Overwolf’s chief executive officer, in a statement. “As we move to onboard mods onto our platform, we’re positioning Overwolf as the industry standard for building in-game creations.”

It wouldn’t be a stretch to think of the company as the Roblox for applications for gamers, and now it’s moving deeper into the gaming world with the acquisition of CurseForge. As the company makes its pitch to current CurseForge users — hoping that the mod developers will stick with the marketplace, they’re offering to increase by 50% the revenue those developers will make.

Overwolf said it has around 30,000 developers who have built 90,000 mods and apps, on its platform already.

As a result of the acquisition, the CurseForge mod manager will move from being a Twitch client and become a standalone desktop app included in Overwolf’s suite of app offerings, and the acquisition won’t have any effect on existing tools and services.

“We’ve been deeply impressed by the level of passion and collaboration in the CurseForge modding community,” said Tim Aldridge, director of Engineering, Gaming Communities at Twitch. “CurseForge is an incredible asset for both creators and gamers. We are confident that the CurseForge community will thrive under Overwolf’s leadership, thanks to their commitment to empowering developers.”

The acquisition comes two years after Overwolf raised $16 million in a round of financing from Intel Capital, which had also partnered with the company on a $7 million fund to invest in app and mod developers for popular games.

“Overwolf’s position as a platform that serves millions of gamers, coupled with its partnership with top developers, means that Intel’s investment will convert into more value for PC gamers worldwide,” said John Bonini, VP and GM of VR, Esports and Gaming at Intel, in a statement at the time. “Intel has always prioritized gamers with high performance, industry-leading hardware. This round of investment in Overwolf advances Intel’s vision to deliver a holistic PC experience that will enhance the ways people interact with their favorite games on the software side as well.”

Other investors in the company include Liberty Technology Venture Capital, the investment arm of the media and telecommunications company, Liberty Media.

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CRV’s Saar Gur wants to invest in a new wave of games built for VR, Twitch and Zoom

Saar Gur is adept at identifying the next big consumer trends earlier than most: The San Francisco-based general partner at CRV has led investments into leading consumer internet companies like Niantic, DoorDash, Bird, Dropbox, Patreon, Kapwing and ClassPass.

His own experience stuck at home during the COVID-19 pandemic spurred his interest in three new investment themes focused on the next generation of games: those built for VR, those built on top of Twitch and those built for video chat environments as a socializing tool.

TechCrunch: We’ve been in a “VR winter,” as it’s been called in the industry, following the 2014-2017 wave of VC funding into VR drying up as the market failed to gain massive consumer adoption. You think VR could soon be hot again. Why?

Saar Gur: If you track revenues of third-party games on Oculus, the numbers are getting interesting. And we think the Quest is not quite the Xbox moment for Facebook, but the device and market response to the Quest have been great. So we are more engaged in looking at VR gaming startups than ever before.

What do you mean by “the Xbox moment,” and what will that look like for VR? Facebook hasn’t been able to keep up with demand for Oculus Quest headsets, and most VR headsets seem to have sold out during this pandemic as people seek entertainment at home. This seems like progress. When will we cross the threshold?

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Opera Event closes $5M Series A for its esports-focused influencer platform

Today Opera Event, an influencer software service, announced that it closed a $5 million Series A. The Oakland-based startup raised the capital from new lead investor Antera, with prior investors Atlas Ventures, Everblue, and Konvoy Ventures coming along.

According to Crunchbase data, Opera Event had raised at least $1.2 million before this new round.

Opera Event is starting with a focus on influencers in the esports market, a business that founder Brandon Byrne knows well. Byrne previously worked for former esports organization Curse and served as the CFO of Team Liquid; Team Liquid is an active esports organization with players in a number of games, including League of Legends and Starcraft 2.

The startup wants to help esports teams monetize, a likely welcome effort given the industry’s historical issues with revenue generation, and reward micro-influencer fans. How it intends to do that is its core software service, one that Byrne expects will in time work for other verticals and influencer sets. Let’s explore.

Opera Event in practice

It’s perhaps best to explain what Opera Event does with a hypothetical example, built off notes from an interview with Opera Event’s Byrne. Let’s say that Alex Wilhelm Super Awesome Esports (AWSAE) is a small Starcraft 2 team — it’s just big enough to attract some sponsorship, but not as much as the team would like. However, AWSAE’s Starcraft 2 players have dedicated fans, many of whom also stream on Twitch and maintain a presence on Twitter.

By using Opera Event, AWSAE’s fans that stream can join the team’s commercial world, adding its sponsors to their Twitch pages, tweeting out the same campaigns and more. Opera Event sits between the team, its community and capital sources (brands), helping make everything click. It’s a situation that works well for Alex Wilhelm Super Awesome Esports. With its community streaming under its commercial banner, its demonstrable in-market impact (tweet impressions, minutes engaged on Twitch, etc) grows sharply. Its associate small streamers and fans get to take part in in the team’s world, and can be rewarded with things like social follows and other bits of love — all while brands can better deploy capital. (Opera Event calls this “the ability to engage and manage content creators efficiently and at scale.”)

Now AWSAE can get bigger sponsors as it can offer a bigger audience, it can share revenues or provide other succor to its fanbase, and brands can get their whatnot in front of more viewers at once.

One team that Byrne detailed had about 39 members doing around 50 million engaged minutes each month on Twitch. Using his startups software to create two affiliate programs, the same team grew to over 3,000 influencers that generated north of 450 million minutes per month of viewership. The latter set of figures are far more commercially viable.

The aggregation of small streamers is more than adding up views, it turns out. Byrne told TechCrunch that smaller esports streamers have better click through rates than the entertainment categories giants, which could help team fans and other community members that sign up as part of their Opera Event network have outsized impact on sponsor results.

Opera Event takes a material cut of deals it lands through its sales team (25% to 30% per the company) and a small cut for deals that flow through its platform but originated elsewhere (2% to 3%). The model generated around $1.8 million for the startup in 2019, and Opera Event hopes to reach $9 million in revenue this year.

Particularly important in today’s changed market, Byrne told TechCrunch that Opera Event is a quarter away from breaking even. That should keep the company safe during a downturn.

In time, Opera Event wants to add more niches to its stable. Its founder mentioned yoga as an example. Where there are influencers big and small, the startup wants to show up and help facilitate influencer commerce and collaboration.

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Players Ntwrk launches celebrity gaming channel backed by WME, Daylight and Stratton Sclavos

Emerging from the smoldering wreckage of Echo Fox and Vision Venture Partners, the investor Stratton Sclavos is rising again to launch a new esports-related venture — a gaming-focused digital network also backed by the WME talent agency and Daylight Holdings.

Tapping Daylight and WME’s roster of talent, Sclavos has created Players Ntwrk, a new gaming-focused production company that will look to compete with other upstarts angling to tap into esports and competitive gaming’s newly dominant place in the entertainment firmament.

Players Ntwrk will feature original programming, unscripted series, celebrity gameplay and live events tapping talent from music, traditional pro-sports and the esports gaming world.

Sclavos and the multifaceted talent manager and president of Daylight Holdings, Ben Curtis, dreamed up Players Ntwrk as a way to tie together disparate groups of athletes and entertainers around their shared love of gaming and entertainment. The network will initially leverage relationships with WME and Klutch Sports Group, the agency founded by LeBron James’ longtime manager, Rich Paul, to find talent for programming.

The network will launch on Tuesday at 5:00 pm Pacific for two hours of gameplay featuring the New Orleans Pelicans Guard/Forward Josh Hart and Sacramento Kings point guard De’Aaron Fox on the Players Ntwrk Twitch channel. Additional live streams will be broadcast Friday and Saturday, the company said.

Over the next 12 weeks the network will add live programming featuring all of its “First Squad” talent and experimenting with different gaming and unscripted formats. Ultimately, the network will produce between 12 and 15 hours of original programming per week by the end of the second quarter and will ramp up to 20 to 24 hours of programming per-week by the end of the year.

Initial programming is going to be devoted to charity fundraising, with proceeds going to designated charities based on direct audience donations, the company said.

Players Ntwrk’s First Squad talent roster includes:

  • Professional athletes: De’Aaron Fox (Sacramento Kings), Josh Hart (New Orleans Pelicans), Jarvis Landry (Cleveland Browns) and Alvin Kamara (New Orleans Saints)
  • Music and Entertainment: PARTYNEXTDOOR, Murda Beatz, producer Boi-1da, actor/former athlete Donovan Carter (Ballers)
  • Creators/Streamers: KatGunn, Sodapoppin, Cash, Jesser, Jericho, Octane, Sigils, Sonii and DenkOps

Players Ntwrk joins companies like Venn, which are angling to gain a slice of the roughly 37.5 million monthly viewers that are expected to watch live streams on Twitch by the end of 2020, according to research done by eMarketer.

“The number of viewers and subscribers consuming gaming entertainment across YouTube and Twitch tops other entertainment services such as Netflix, HBO, Spotify and ESPN combined,” said Sclavos, in a statement. “Entertainment spectacle is trumping hardcore gaming competition. That kind of engagement makes it clear; gaming entertainment is the next pop culture phenomena. PLAYERS NTWRK is the only platform embracing and executing this new reality by creating original content with the most influential people who also happen to be fans themselves.”

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Meet VENN, the company hoping to build MTV for the gaming generation

Maybe a network will be the thing that replaces the single streaming media star.

VENN, a new company launching with $17 million in funding from some of the biggest names in gaming, is hoping to harness the power of streaming media’s online celebrities and funnel them into a channel that can command the kind of advertising revenues of the networks of old.

The vision harkens back to the golden days of MTV, when shows like TRL ruled the media landscape and a New York-based network set the cultural agenda through the prism of pop music.

For the creators of VENN — who include Ariel Horn, a four-time Emmy-winning producer who brought the commercial storytelling from his network days working on Olympics broadcasts for NBC (a division of Comcast) to the esports phenomenons of Riot Games and Blizzard Entertainment; and Ben Kusin, a former global director of new media at Vivendi Games — MTV is the template for creating a cultural commodity from what’s becoming the lingua franca of a new generation of consumers.

Where music (and particularly music videos) was once the genre-spanning language for a generation, the two entrepreneurs see gaming culture as the touchstone for a new audience. And where fragmentation has created a confusing market for advertisers to reach that audience, the content funnel and single source that a network can provide offers an attractive alternative to reaching out to a single celebrity gamer, streamer or platform.

That’s the pitch behind VENN, which not only stands for Video Game Entertainment News Network, but also represents the Venn diagram, whose center resides at the intersection of gaming, music, fashion and entertainment broadly, according to the two co-founders.

Ben Kusin Ariel Horn

VENN co-founders Ben Kusin and Ariel Horn

“You’re looking at a $150 billion per-year industry,” says Kusin. “We think streamers, casters, content creators, these are the new celebrities… what MTV TRL used to be back in the day, if that were to launch today, what would it look like? This culture would be seen through the lens of gaming.”

His co-founder, Horn, agrees. “We see gaming as the lens through which we want to create and contextualize Gen Z,” says Horn.

Horn knows the potential audience better than nearly anyone. In his last job, he presided over esports events that commanded viewership in the hundreds of millions. Both Kusin and Horn think the same-sized audience could exist for their network — if not larger, because the two producers and their channel aren’t beholden to a single title, franchise or publisher.

Nor are they subject or beholden to a single distribution platform.

“We’re a universal network,” says Kusin. “We will be distributed on Twitch, on YouTube and on Pluto, Hulu and Roku… Anywhere and everywhere that our customers are consuming content.”

The company is currently looking to recruit top-tier talent and bring their sponsor-based streams and formats into a traditional network environment, with higher production values and something approximating the types of talent contracts and deals that would be afforded to a network figure. These streamers, gamers and others would be able to supplement their existing sponsor-based income with their work on VENN, the two co-founders said.

The executives would not comment on what, specifically, the programming would include, but indicated that VENN was in discussions with a number of the top streamers in the gaming corners of services like YouTube and Twitch from which they’d pull programming. One genre that will likely make its way onto the network is an American Ninja Warrior-style competitive show for speedruns through different levels of games.

“There are already shows on Twitch,” says Horn. “It’s reported out there for you in real time. You’re getting all kinds of feedback.” What’s necessary, he says, is to elevate the production value and add other kinds of more traditional programming around it.

“There are two hundred million people consuming YouTube gaming content… There are esports teams [like] Liquid [and] G2 whose talent consider themselves entertainers,” says Kusin. “We’re giving the entire industry a home and a heartbeat.”

The appeal for brands is obvious. If there’s a single place to go to capture the audience that follows streaming celebrities like Ninja, Tfue or VanossGaming, that real estate is far more desirable than pursuing independent sponsorship deals with each individual streamer.

LOS ANGELES, CA – JUNE 12: Gamers ‘Ninja’ (L) and ‘Marshmello’ compete in the Epic Games Fortnite E3 Tournament at the Banc of California Stadium on June 12, 2018 in Los Angeles, California. (Photo by Christian Petersen/Getty Images)

Brands trying to put their money into gaming is not that straightforward,” says Horn.”There isn’t really a network like this that exists right now… that exists for the industry at large.”

Other companies that have emerged to capture advertising dollars or create networks of entertainers in something akin to an agency model may beg to differ. These are companies like 3blackdot or Popdog, which represent a significant chunk of online gaming talent. Or more traditional sites that have significant followings like IGN, which bills itself as the No. 1 games media company.

Beyond the competition, VENN is still rolling the dice on whether the new generation of consumers wants to have a more produced, mediated entertainment network rather than continue to gravitate to the unmediated experience of watching live streams of their peers do the things that they’re doing themselves. YouTube is more than just a vehicle to mainstream stardom, these streamers are their own mainstream stars for millions of viewers who seem fine with the no-fi production values that YouTube almost demands.

Investors are betting that they are, because VENN has raised a $17 million treasure chest to spend on bringing its vision to the market. The money comes from some of the biggest names in gaming, led by the European investment firm BITKRAFT. Additional investors include: Marc Merrill, the co-founder of Riot Games; Mike and Amy Morhaime, the co-founder of Blizzard Entertainment and its former head of global esports; Kevin Lin, the co-founder of Twitch; and aXiomatic Gaming, an esports investment group with stakes in Epic Games, Team Liquid and Niantic. 

“It’s about time we significantly raise the bar for video content in gaming and esports. We need to elevate the stars and stories in our community and provide a better and larger opportunity for brands to reach gamers,” said Jens Hilgers, founding partner of BITKRAFT in a statement.   

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After account hacks, Twitch streamers take security into their own hands

Twitch has an account hacking problem.

After the breach of popular browser game Town of Salem in January, some 7.8 million stolen passwords quickly became the weakest link not only for the game but gamers’ other accounts. The passwords were stored using a long-deprecated scrambling algorithm, making them easily cracked.

It didn’t take long for security researcher and gamer Matthew Jakubowski to see the aftermath.

In the weeks following, the main subreddit for Amazon-owned game streaming site Twitch — of which Jakubowski is a moderator — was flooded with complaints about account hijacks. One after the other, users said their accounts had been hacked. Many of the hijacked accounts had used their Town of Salem password for their Twitch account.

Jakubowski blamed the attacks on automated account takeovers — bots that cycle through password lists stolen from breached sites, including Town of Salem.

“Twitch knows it’s a problem — but this has been going on for months and there’s no end in sight,” Jakubowski told TechCrunch.

Credential stuffing is a security problem that requires participation from both tech companies and their users. Hackers take lists of usernames and passwords from other breached sites and brute-force their way into other accounts. Customers of DoorDash and Chipotle have in recent months complained of account breaches, but have denied their systems have been hacked, offered little help to their users or shown any effort to bolster their security, and instead washed their hands of any responsibility.

Jakubowski, working with fellow security researcher Johnny Xmas, said Twitch no longer accepting email addresses to log in and incentivizing users to set up two-factor authentication would all but eliminate the problem.

The Russia connection

In new research out Tuesday, Jakubowski and Xmas said Russian hackers are a likely culprit.

The researchers found attackers would run massive lists of stolen credentials against Twitch’s login systems using widely available automation tools. With no discernible system to prevent automated logins, the attackers can hack into Twitch accounts at speed. Once logged in, the attackers then change the password to gain persistent access to the account. Even if they’re caught, some users are claiming a turnaround time of four weeks for Twitch support to get their accounts back.

On the accounts with a stored payment card — or an associated Amazon Prime membership — the attackers follow streaming channels they run or pay a small fee to access, of which Twitch takes a cut. Twitch also has its own virtual currency — bits — to help streamers solicit donations, which can be abused by the attackers to funnel funds into their coffers.

When the attacker’s streaming account hits the payout limit, the attacker cashes out.

The researchers said the attackers stream prerecorded gameplay footage on their own Twitch channels, often using Russian words and names.

“You’ll see these Russian accounts that will stream what appears to be old video game footage — you’ll never see a face or hear anybody talking but you’ll get tons of people subscribing and following in the channel,” said Xmas. “You’ll get people donating bits when nothing is going on in there — even when the channel isn’t streaming,” he said.

This activity helps cloak the attackers’ account takeover and pay-to-follow activity, said Xmas, but the attackers would keep the subscriber counts low enough to garner payouts from Twitch but not draw attention.

“If it’s something easy enough for [Jakubowski] to stumble across, it should be easy for Twitch to handle,” said Xmas. “But Twitch is staying silent and users are constantly being defrauded.”

Two-factor all the things

Twitch, unlike other sites and services with a credential stuffing problem, already lets its 15 million daily users set up two-factor authentication on their accounts, putting much of the onus to stay secure on the users themselves.

Twitch partners, like Jakubowski, and affiliates are required to set up two-factor on their accounts.

But the researchers say Twitch should do more to incentivize ordinary users — the primary target for account hijackers and fraudsters — to secure their accounts.

“I think [Twitch] doesn’t want that extra step between a valid user trying to pay for something and adding friction to that process,” said Jakubowski.

“The hackers have no idea how valuable an account is until they log in. They’re just going to try everyone — and take a shotgun approach.”
Matthew Jakubowski, security researcher and Twitch partner

“Two-factor is important — everyone knows it’s important but users still aren’t using it because it’s inconvenient,” said Xmas. “That’s the bottom line: Twitch doesn’t want to inconvenience people because that loses Twitch money,” he said.

Recognizing there was still a lack of awareness around password security and with no help from Twitch, Jakubowski and Xmas took matters into their own hands. The pair teamed up to write a comprehensive Twitch user security guide to explain why seemingly unremarkable accounts are a target for hackers, and hosted a Reddit “ask me anything” to let users to ask questions and get instant feedback.

Even during Jakubowski’s streaming sessions, he doesn’t waste a chance to warn his viewers about the security problem — often fielding other security-related questions from his fans.

“Every 10 minutes or so, I’ll remind people watching to set-up two factor,” he said.

“The hackers have no idea how valuable an account is until they log in,” said Jakubowski. “They’re just going to try everyone — and take a shotgun approach,” he said.

Xmas said users “don’t realize” how vulnerable they are. “They don’t understand why their account — which they don’t even use to stream — is desirable to hackers,” he said. “If you have a payment card associated with your account, that’s what they want.”

Carrot and the stick

Jakubowski said that convincing the users is the big challenge.

Twitch could encourage users with free perks — like badges or emotes — costing the company nothing, the researchers said. Twitch lets users collect badges to flair their accounts. World of Warcraft maker Blizzard offers perks for setting up two-factor, and Epic Games offers similar incentives to their gamers.

“Rewarding users for implementing two-factor would go a huge way,” said Xmas. “It’s incredible to see how effective that is.”

The two said the company could also integrate third-party leaked credential monitoring services, like Have I Been Pwned, to warn users if their passwords have been leaked or exposed. And, among other fixes, the researchers say removing two-factor by text message would reduce SIM swapping attacks. Xmas, who serves as director of field engineering at anti-bot startup Kasada — which TechCrunch profiled earlier this year — said Twitch could invest in systems that detect bot activity to prevent automated logins.

Twitch, when reached prior to publication, did not comment.

Jakubowski said until Twitch acts, streamers can do their part by encouraging their viewers to switch on the security feature. “Streamers are influencers — more users are likely to switch on two-factor if they hear it from a streamer,” he said.

“Getting more streamers to get on board with security will hopefully go a much longer way,” he said.

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FanAI buys Waypoint Media to better track fan engagement for streaming monetization

FanAI, an audience analysis platform for esports and streaming, is buying New York-based Waypoint Media to improve its analytics tools for esports players and streamers.

The deal means that Waypoint’s Twitch Middleware API and the “Raven” tracking and URL shortener will be added to FanAI’s product portfolio. The middleware tech has the ability to track every unique registered Twitch viewer so streamers can monitor average watch time, median watch time and channel engagement.

Financial terms were not disclosed, but a person with knowledge of the deal called the acquisition a significant all-cash transaction. That likely means a nice outcome for Waypoint’s backers, the New York-based investment firm Grand Central Tech.

FanAI founder and CEO Johannes Waldstein said of the acquisition, “The way they are able to turn billions of data points into workable information is like nothing else available on the market. We will be able to provide a deeper look at audiences with the new tools and having someone like Kevin join us will cement the FanAI services at the top of the industry.”

Using the Raven URL shortener, FanAI customers can follow the ways in which users browse on online platforms, the company said in a statement.

As part of the acquisition, Waypoint’s chief product officer Kevin Hsu joins FanAI as head of Engineering, the company said.

“Combining forces with FanAI is a perfect fit; we work with the same client base and have complementary solutions to the same problem. Traditionally, FanAI has focused on more static information including social and purchasing data, while Waypoint worked to gather digital movements of the audience. Combined, we can provide the best service by giving access to even more detailed and actionable data for clients,” said Hsu, in a statement.

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Quarterback lets top esports gamers and streamers create their own fan-based leagues

In an effort to tie the top gamers and streamers more directly with their fans, a new company called Quarterback has just raised $2.5 million to create and manage fan-based leagues for the superstars of the esports and streaming world.

The company raked in its seed round from investors led by Bitkraft Esports, which is quickly building one of the most complete portfolios of gaming-related startups in the industry. Additional investors include Crest Capital Ventures, Deep Space Ventures, UpWest Labs and angel investors.

Essentially, it’s a platform for creating gaming leagues and content driven not by game publishers, leagues, or existing streaming sites like Twitch, but by the gamers themselves. It gives streamers and players a new way to reach their audience, the company claims.

Founded by serial entrepreneur Jonathan Weinberg, who acted as the chief executive for Round Robin and held a leadership role in the mobile game studio Spartonix, Quarterback is the latest attempt to get more revenue into the hands of gamers. 

Leagues created on Quarterback can host daily challenges, give away prizes and compete against fan clubs devoted to other top players.

Esports streamers and gamers are among the most bankable influencers, pitching to a new generation of consumers that don’t track traditional media sources. The ability to host and own their own channels gives these streamers an ability to create their own game libraries, cultivate a next generation of talent and encourage one-to-one interactions on platforms they control.

“Most streamers and pros struggle to monetize their fan-base and lose touch with their audience when the fans break away to play their own games,” says Jens Hilgers, a founding partner of Bitkraft Esports Ventures. “Quarterback solves this problem in a unique way by helping streamers become an integral part of their fan’s game-play.”

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Xbox One gets Beam streaming, a new guide and more starting today

 Xbox One is getting an update starting today, echoing some of the major changes coming to Windows in its forthcoming Creators Update. The big new additions include streaming via Microsoft’s own Twitch competitor Beam, as well as a brand new Xbox user experience made up of a new design for Guide, improvements to Home and more. The new features are designed around encouraging gamers to… Read More

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