Year: founded in 2011 (acquisition from Amazon in 2014) Nation: U.S.A. Typology of service: Entertainment streaming platform
L. Cerrato, N. Orlando, S. Padannappurath, G. Romagnoli | Service Innovation
HOW IT WORKS Twitch is the most important platform in the world for the creation of shows about video-games, both online multiplayer and offline single player, through a big number of content creators (streamers) and official professional tournaments or competitions.
L. Cerrato, N. Orlando, S. Padannappurath, G. Romagnoli | Service Innovation
HOW IT WORKS
L. Cerrato, N. Orlando, S. Padannappurath, G. Romagnoli | Service Innovation
HOW IT WORKS
L. Cerrato, N. Orlando, S. Padannappurath, G. Romagnoli | Service Innovation
HOW IT WORKS The platform has two main categories of users: streamers (who actually provide the show and use the platform to broadcast their gameplay live) and spectators (who use the site to watch streamings)
L. Cerrato, N. Orlando, S. Padannappurath, G. Romagnoli | Service Innovation
Name Occupation Family Age
Filippo RiccardoPugliatti Agostini Student Game Designer Single Engaged 18 27
Discovery Discovery
Play Search A game A Platform online where share
Sees Find Out the adv of That Twitch an the e-Sport is Placompetition tform more broadcasted used on Twicth
Motivation
Quote
He wants to see professional earnhow online sharing the gamer inknows orderbetter, to learn how to thing play the he play do better and to enjoy the community. videogames.
“I reallyto hope my favourite “ Thanks Twitch i finally player win today” combinewill a job with a passion”
Awareness Awareness
Visit Twitch website for the first time
Start Discover Decide Start watching The to strem his chat own game and his own option stream streaming the huge content on twitch community platform
Becomes an activeEarn user Use Moment Moment of of truth truth
Review Share
Costumer Journey Map
“The viewer” Streamer”
Decide Become Discover Support Rates Increase Receive Become Start Promote to buy a an moderator Automod favourite the viewers email an earning his service Twitch twitch fortwitch his technology streamers of Twitch from affiliate and Twitch channel on prime to favourite in chat donating onsocial Amazon about became a get streamer moderator full-time bits asmedia great affiliation benefits Program job
L. Cerrato, N. Orlando, S. Padannappurath, G. Romagnoli | Service Innovation
Name Occupation Family Age
Riccardo Agostini Game Designer Engaged 27
Discovery
Search A Platform where share
Find Out That Twitch is the Platform more used
Motivation
Quote
He wants to earn online sharing the thing the he knows better, play videogames.
“ Thanks to Twitch i finally combine a job with a passion”
Awareness
Visit Twitch website
Decide to strem his own content
Use
Start his own stream
Increase viewers
Earn
Moment of truth
Share
Costumer Journey Map
“The Streamer”
Receive Become Start Promote an email an earning his Twitch from twitch affiliate and Twitch channel on about became a social affiliation full-time media Program job
L. Cerrato, N. Orlando, S. Padannappurath, G. Romagnoli | Service Innovation
/spectator
Chat with streamer Cheering /spectator
Affiliation Program
Affiliation Program Subscribing system
Subscribing system Vodcast Vodcast Game buying codes and Game buying reward
Custom badge/mesCheering
Offering Map
Chat with streamer AutoMod tool
Offering Map
AutoMod tool
sages
Platform to Stream Platform to Stream
Real time Chat Real time Chat
Custom badge/messages
Chat moderators
Chat moderators Automatic messages
(bots)
Automatic messages (bots)
codes and reward
Call/Video call
Pulse Suggested Pulse Suggested contents contents
Clip cutting
Clip cutting
Platform to Platform to watch watch
Additional Additional Services Services
Call/Video call
Twitch Launcher
Twitch Launcher
Cloud for
Cloud game for progress game progress saving saving
L. Cerrato, N. Orlando, S. Padannappurath, G. Romagnoli | Service Innovation
COMPETITORS When it emerged in its first years, Twitch dominated the gaming streaming market totally alone. Right now it has one main competitor, who pretty much matched all of its basic features: Youtube Gaming. Despite that, Twitch is still leader on the market, thanks to the innovations they carried on in latest years.
L. Cerrato, N. Orlando, S. Padannappurath, G. Romagnoli | Service Innovation
COMPETITORS COMPETITORS Montly Active Streamer
Concurrent Viewer by Platform
Twitch
Youtube Gaming
Mixer
Facebook Periscope
Fonte:
report Streamlabs 2017 L. Cerrato, N. Orlando, S. Padannappurath, G. Romagnoli | Service Innovation
PARTNERSHIP AFFILIATION TWITCH GIVES THE OPPORTUNITY TO HAVE STRONG GROWTH IN SHORT TIMES EVEN IF THE STREAMER IS A BEGINNER
SMALL STREAMER
PARTNERSHIP THE GROWTH ON YOUTUBE CAN STILL LEAD TO GOOD RESULTS, BUT IT IS MUCH HARDER TO GET VIEWERS AND FOLLOWERS IF STARTING FROM ZERO
SMALL STREAMER
L. Cerrato, N. Orlando, S. Padannappurath, G. Romagnoli | Service Innovation
STAKEHOLDERS Even if at its bases, the service that Twitch provides is pretty simple, the actors involved are not few. The system is based on the interaction between spectators, streamers, advertisers, game developing companies and also eSports professional teams and players.
L. Cerrato, N. Orlando, S. Padannappurath, G. Romagnoli | Service Innovation
Watch
Advertisement
- Watch - Donate
Main area of innovation Spectators
- Watch - Buy merch
Streamers
Professional eSports teams
Play for
Game developer company
Gameplay/entertainment streamings eSports/official streamings Competitions (Totally managed outside of Twitch)
Push
Direct money exchange Other actions
L. Cerrato, N. Orlando, S. Padannappurath, G. Romagnoli | Service Innovation
System Map
Streamer
Advertisement
Spectator Professional eSport Team
FLOWS TYPES
Game developer c Company
Information Flow
Financial Flow
Labour Performances
L. Cerrato, N. Orlando, S. Padannappurath, G. Romagnoli | Service Innovation
LEVEL OF NEWNESS
AFFILIATION PROGRAM
AUTOMOD
The affiliation program is a sort of deal between Twitch and some streamers on the platform. According to the numbers the streamer is able to produce, he gets specific advantages, most of all an increase and a better management of his incomes through stream.
Automod is an algorithm able to block or flag inappropriate messages that can be viewed later by a human moderator. AutoMod combines “machine learning and natural language processing� in order to create a better chat room experience
L. Cerrato, N. Orlando, S. Padannappurath, G. Romagnoli | Service Innovation
LEVEL OF NEWNESS NEW TO THE MARKET The innovations Twitch developed to keep their dominance in the streaming sector, are mostly things that were already well developed in other kinds of markets, but these are still not implemented on other platforms, making the innovations provided “new to the market�
L. Cerrato, N. Orlando, S. Padannappurath, G. Romagnoli | Service Innovation
Advertisement
50% Twitch Prime/Turbo
Sale of Games
50%
50%
5%
50%
100%
Focus on innovation
Subscriptions
User
Cheering/ Donation
More User Money exchange
L. Cerrato, N. Orlando, S. Padannappurath, G. Romagnoli | Service Innovation
DEGREE OF CHANGE
INCREMENTAL INNOVATION
IMPROVEMENT INNOVATION
AFFILIATION PROGRAM
AUTOMOD
We consider this innovation as incremental, because even if consisting in basically only an improvement to the relation between the society and one of their stakeholders, it has a meaningful impact on the organization of the company, since it significantly changes their revenue streams.
This innovation can only be considered as an improvement to the existing service Twitch already provided. It’s anyway important to underline the fact that this “upgrade” considerably affects the quality of the overall service, since it improves the main touchpoint between the service itself and its main users.
L. Cerrato, N. Orlando, S. Padannappurath, G. Romagnoli | Service Innovation
DIMENSIONS OF NOVELTY NEW SERVICE CONCEPT
NEW CLIENT INTERFACE
TECHNOLOGICAL OPTIONS
NEW SERVICE DELIVERY SYSTEM
[Den Hertog, 2000]
L. Cerrato, N. Orlando, S. Padannappurath, G. Romagnoli | Service Innovation
PATTERN OF INNOVATION TWITCH SCIENCE All the technologies Twitch is developing come from their internal teams; after its entrance in Amazon, Twitch created a development team called “Twitch Science� who works on deep data analysis to find oppotunities of improvement in all the factors influencing the activities of the company.
L. Cerrato, N. Orlando, S. Padannappurath, G. Romagnoli | Service Innovation
MEANS OF INNOVATION `
HI TECH
The operations on the chat are all based on artificial intelligence, which is developed from very specialized teams, with deep knowledge about engineering and coding; the payment and donation management system for streamers all go through digital transitions and online banking, so even in this case, the technology part is not negligible.
`
HI TOUCH
Twitch is basically building a business through interactions between persons, about a specific topic (videogames). The main offer the company proposes consists in the streamers and in the community, so we can say that this is the high-touch component of the service.
L. Cerrato, N. Orlando, S. Padannappurath, G. Romagnoli | Service Innovation
CO-CREATION OF VALUE
VALUE FOR THE FIRM
VALUE FOR THE USER
VALUE FOR THE PARTNERS
The insane numbers of successful channels that Twitch was able to promote and support through their innovations, allowed them to build a huge user base, that obviously turned into millions of dollars of income.
Twitch users are very passionate about the service and are very interested in keeping using it, because they evaluate the level of the entertainment and the quality of the gameplay really well. Since 2015, Twitch also conducts TwitchCon, which is a convention for Twitch users and it has been a huge success.
In Twitch, streamers are made partners and revenue is shared with them. This is probably the main factor that kept the whole system working at the best level, since many streamers are very proud to be part of its community, because it allowed them to create a job through their passion.
L. Cerrato, N. Orlando, S. Padannappurath, G. Romagnoli | Service Innovation
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