Valve is going head-to-head with Amazon-owned game streaming platform Twitch by launching its own equivalent through its digital distribution system Steam. From today, users of Steam Beta can stream and broadcast games between other Steam friends.
The Steam streaming service is more personal than Twitch’s or YouTube’s offering, since it is designed to be exclusive to friends only, meaning strangers will not be able to view your gaming stream.
Using the new streaming function couldn’t be easier. Steam Beta is available for download through the website. Once installed, streams can be easily shared through your Friends List. Right click on a friend’s name and click the ‘Watch Game’ option. The person then has the option to accept your request. If they approve, you get instant access to their live stream.
Source: KitGuru
I don’t think they’re trying to compete; as mentioned in the article, the Steam Stream is designed mainly just for letting your friends watch your game, whereas Twitch is all about streaming to larger audiences. I’ve watched a friend play a game through Steam and it’s a lot more basic than twitch, but a lot easier to set up due to the one-click nature of it.
Let’s not forget it also just came out of beta. You can also post your link to your stream for steam on social networks which vastly widens the horizon of just “your friends.” It just needs a little more time to mature.