For so long, Twitch was one of the top streaming platforms. Ever wonder why so many people are now streaming on YouTube? In this article, Riley explains the new rule Twitch released and how it has led to its own downfall.
The Downfall of Twitch
By Riley Barta
On Sept. 21, 2022, Twitch president Dan Clancy shared the new revenue split. Twitch originally had a set 50/50 revenue split with all streamers, pardon a select few. Recently, though, they bumped all streamers on the app down to a 50/50. This shows the greediness of Twitch.
Twitch mascot credits to Twitch
Twitch is a streaming service owned by Amazon. Anyone can stream a variety of topics such as video games, cooking, or a television show. What drew streamers to work on Twitch rather than other streaming platforms like YouTube or Facebook was the sense of community on the app. One could run surveys and talk to their audience whilst streaming. Streamers Playbook states, “One thing that draws many people to Twitch is the community aspect.” The way that streamers made money was through bits. Investopedia says, “Bits are virtual goods that channel supporters can purchase and then use to encourage their favorite streamers when they are in a chat.” When it came to streaming, Twitch was by far the best choice-- though all good things must have flaws.
The flaws of Twitch have always been prevalent, such as users being randomly banned whilst streaming. Streamer Dellor got banned for breaking his keyboard. Global-ESports comments, “So after another tantrum in which he smashed a keyboard against his head and the table, he was banned from Twitch indefinitely.” This ban shocked viewers; Dellor was infamous for buying cheap keyboards to break. Twitch has also been accused of allegedly being sexist with its bans. JiDion, a streamer on Twitch who has been indefinitely banned, comments: “Twitch, there can’t be a terms of service for girls, and then a terms of service for boys.” Most women on the platform can get away with only getting banned for 24-48 hours for doing an “offense” for which men would be banned indefinitely.
Dellor breaking a keyboard. Credits to Dellor's YouTube page
Recently, Twitch finally put the final stone on its wall of failures. Dan Clancy wrote a letter on Twitch explaining the new revenue split. Most users on the platform had a 50/50 split with Twitch from the get-go. However, as Clancy says in his letter, “for some time we did offer standard agreements with premium subscription terms to select streamers as they grew larger.” These select few typically had a 70/30 split. Now, all streamers on the platform will only be given a 50/50 split. Streamers who already signed contracts with Twitch to be given higher revenue splits, are now pulled back down to a 50/5,0 whilst still having to maintain the same amount of work. Twitch has stated that “This innate partnership is why we support all streamers’ careers and ambitions like they’re our own.” However, this new rule proves that Twitch is simply greedy. YouTube Live is a fairly new option, yet streamers get a 70/30 split always. Such a big company should be able to afford to give their streamers a 70/30 split. Another issue to contend with is that most streamers with the 70/30 deal both helped build Twitch's popularity but also depend on that bonus. What makes this even worse is that Twitch knows this. Clancy says, “...many of whom were instrumental in helping us build the Twitch we know today. These streamers have come to depend on the additional revenue split to maintain their standard of living.” Twitch knows they are betraying the people they used to gain popularity.
Twitch used to be an app seen as indestructible, but now they have shown just how little they care about their streamers. This new guideline will put streamers in a hard place, but Twitch knows that. With this new guideline, Twitch has revealed its greed.
https://www.investopedia.com/articles/investing/082115/how-twitchtv-works-and-its-business-model.asp
"Twitch: Sexist and Favoritism" -JiDion (on YouTube)
