Twitch no cede ante Kick

Some measures that Twitch took in recent times made the community a bit uneasyto the point that some streamers decided to leave to Youtube, Booyah, Mixer, etc. Or they even got to the point of creating a new space. The irruption in the market of Kick, a brand new competitor in the streaming scenecreated by former Twitch streamer Trainwreck, arose from the impossibility of generating online casino content on Amazon’s virtual screen.

Kick’s most tempting proposition to seduce streamers wasn’t exactly the freedom to create content. While the restrictions are a stick in the wheel for the vast majority of the streaming world, in this case Kick pointed to the pocket. The promise to give 95% of the profits generated to streamers was a low blow for Twitch, and in PEEK Latam we tell you why.

TWITCH, THE SYSTEM AND ITS UNTOUCHABLE PORTION

The unpredictable growth of streaming from the Covid 19 pandemic put Twitch to manage previously unimagined wealth and power. He had to take action quickly, which in the future was going to bring him the odd inconvenience. A very clear example is slots, a content that Twitch allowed and believed to be harmless, until it realized the danger that it meant to his audience to see bets as mainstream content.

However, it was not the most relevant section for Amazon’s entertainment branch. The monetization system, which at first it was 70/30 in favor of the streamer (depending on each contract), it started to be a problem for Twitch, which at the end of 2022, it announced a complete change in the monetization of subscriptions.

Let’s quickly remember that Twitch content is free, but there are some memberships that have a basic value of 4.99 USDand that give the user certain benefits, such as avoiding advertising.

By 2023 Twitch mandated that every streamer whose profits reach $100,000 per year will have to automatically split 50/50 with the platform. Regardless of the contract that they hold, content creators like Ibai, will no longer enjoy keeping 70% of what is generated. In this way, and with at least a controversial measure, Twitch he secured his cut.

TWITCH AND THE PEDESTAL

Kick came as a threat, and will give 95% of the money to the streamer. As a reply Twitch redoubled the bet: not only did it not change anything in favor of the content creator, but it also reaffirmed its monetization modeland he assumed that his monopoly is not in any danger.

Tom Verrilli, director of products, and Mike Minton, director of monetization, came out to consolidate the company’s move, and assured that, at least in economic terms, “no other platform is a threat to Twitch”. As justification for the questions of why this measure, they affirmed that they will work to improve the experience Related to advertisements, which are so annoying to the user that he chooses to pay the subscription so as not to have to see them.

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