Twitch backtracks on new monetization rules after streamers revolt, showing how creators can flex their power
Reloading your last save point… On Tuesday, gaming-focused streaming platform Twitch announced new ad rules that would threaten streamers’ sponsorship revenue, including no ads allowed to play directly in-stream, and that on-stream logos could take up only 3% of the screen. Since brand deals make up the bulk of top streamers’ earnings, there was loud backlash:
Backtrack: After big-name streamers like Asmongold threatened to leave the platform and mega-creators like MrBeast criticized the move, Twitch reversed course on Wednesday, saying “these guidelines are bad for you and bad for Twitch.”
Loot: Unlike ad revenue, brand-sponsorship revenue goes 100% to streamers. Deals can be very lucrative: it was leaked that gambling site Stake paid streamer Adin Ross 335 ethereum, or nearly $1M/week last March.
Controversy 2.0… This isn’t the first time Twitch has pushed streamers’ buttons. Last year the platform increased its cut of top streamers’ earnings from subscriptions and donations by half in most cases. Twitch blamed the high fees charged by Amazon Web Services for live video. Streamers pointed out that Amazon owns Twitch (awk).
Don’t bite the hand that feeds you… Twitch’s rule reversal is a testament to creators’ power over platforms. Twitch is still the go-to for watching gaming, but if its top streamers move to YouTube it’ll be hard to retain eyeballs to view ads — its biggest revenue source. MrBeast’s input: “Hey @Twitch how about instead of handicapping what creators make, you help them make more? Seems more logical.”