Video game “re-stream” is a popular video genre on YouTube where gamers post recorded video of their gameplay, sometimes accompanied by voice-over commentary. One of the most popular channels is Machinima, which is looking to transform itself from a YouTube channel with billions of monthly views to a real media company. It may be the future of television, so long as Machinima, and others like it, can overcome copyright issues and create a sustainable model.

“The stars seem to be aligning for video game streaming as a commercial media form,” according to Businessweek. “Google, which has already invested in Machinima, announced this year it would make it easier to stream games to YouTube. The new Xbox and PlayStation consoles have been designed to make it easier for gamers to record and share videos of their on-screen exploits.”

Last year, Machinima raised $35 million in a round led by Google, and is now looking to raise more in an effort to advance content ambitions.

“Instead of relying on clips contributed by YouTube amateurs and semipros, Machinima wants to spend more money licensing original shows, like the Warner Bros-produced ‘Mortal Kombat’ series it has run, or a forthcoming series from director Ridley Scott,” reports AllThingsD. “Machinima wants to figure out how to create a subscription business, a la Hulu Plus or Netflix, which could run on other platforms, like Microsoft’s Xbox, as well as Machinima’s own, non-YouTube site.”

Earlier this year, Nintendo asked Google to direct advertising profits from these videos to Nintendo. Due to gamer complaints, Nintendo backed down. Yet, some gaming companies allow these videos, which are regarded as marketing for their games.

As Machinima looks to profit from re-stream videos, its success may pave the way for others to do the same. However, copyright problems may arise. “The moment people start to make money from this is the moment the red flags are raised,” said James McQuivey, analyst at Forrester Research.

Machinima may have other problems, as its viewership may have peaked (comScore reports 2.2 billion views for March, only up from 2.1 billion in July 2012). However, its viewers tend to spend more time on Machinima than they do on other channels. Additionally, Machinima may find that its pursuit of original content proves costly, more costly than free content provided by its audience.