For years, Twitch has struggled to find a balance between being a place where video gamers can happily make a ton of money by live streaming to their fans, and being a profitable business.
This conundrum plagued the platform as it evolved from a tiny startup called Justin.tv to an Amazon-owned pandemic-driven behemoth in the world of live video. Today, up to 8 million streamers broadcast gaming exploits, culinary experiments and political stories monthly to the 31 million viewers who visit the platform daily.
Along the way, Twitch has largely maintained the goodwill of its lifeblood, the streamers. But that has changed. Streamers say they are increasingly worried that they will be forgotten by the platform in the name of profit.In recent years, a dozen star Twitch streamers have switched to YouTube, and it risks losing more to other live-streaming platforms.
Rebellion aired earlier this month in San Diego at TwitchCon in front of 30,000 people. Fans can meet their favorite streamers in person. Streamers who have held regular meetups and reunited with friends are upset by the streaming platform’s recent decision that some streamers will receive a larger share of the revenue they generate from fans who subscribe to their channels. – a change they believe symbolizes a shift in Twitch’s priorities.
Taylor Drury, who streams on Twitch as Taylien said, “The resentment at this decision is palpable. We all affirm to each other, ‘You hate this?’ ‘Yeah, we all hate that.’”
Streamers say there are other signs that Twitch is losing touch with its community. This has leveled the frustration over the years as other streaming and video services matured. Disappointed. A streamer executive who was considered the community’s biggest supporter has left. Streamers say communication with the company has deteriorated, and they believe Twitch prioritized hiring engineers over hiring people to address their concerns.
Streamers suspect the platform is under pressure from Amazon, which acquired the service in 2014. Andy Jassy, who took over as Amazon CEO in July 2021, has been looking for ways to keep costs down this year as Amazon’s growth slows to its lowest level in 20 years. The company is focusing on improving warehouse efficiency, shutting down lackluster project teams and temporarily freezing hiring in its retail sector.
Amazon doesn’t publish Twitch’s financials, but analysts don’t believe the site, which employs more than 1,800 people, is profitable.
Hasan Piker, one of the site’s biggest names said in an interview, “It’s crazy that Amazon is trying to force Twitch to squeeze more revenue out of the top content creators,” At his booth on the conference floor, Pyker, known on the streaming platform as Hasan Abi, handed out mock newspaper front pages with provocative headlines: “Twitch Steals 30% of Content Creators’ Revenue.”
Changes to subscription revenue will only affect streamers who have a so-called premium contract with the platform. This allows them to keep 70% of the subscription revenue and pass 30% to Twitch. Starting next June, subscription revenue for these streamers will be split 50:50 with Twitch after the first $100,000. Hundreds of streamers are now making enough money to be affected by the change, the company says.
Twitch President Dan Clancy said in an interview that the change would help Twitch pay for the rising cost of hosting live video. He also argued that it would ultimately help streamers.
“Ultimately, the more we grow our audience, the more our streamers benefit,” he said. “A big part of that is trying to get to that position that will allow us to continue to assert ourselves and keep investing and growing.”
The platform has also made several changes in recent months to appeal to streamers, including slashing ad revenue, broadcasting on competing platforms, and lowering the amount of money the site must earn before cashing out.
Some streamers attending the San Diego conference said they understood the rationale.
TwitchCon once allowed streamers to put their frustrations aside. They spend hours signing autographs, donning colorful costumes, filling downtown nightclubs, and watching
TwitchCon once allowed streamers to put their frustrations aside. They spend hours signing autographs, donning colorful costumes, filling downtown nightclubs, and watching Megan stallion performing at a concert next to it Master Chief, the main character in the Halo series.
For many, the experience was bittersweet. It reminded them why they joined the streaming platform in the first place and why they’re fighting to keep it from changing.
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