Hi, this is Wayne again with a topic “Time for Twitch to make Money for Amazon!”.
Oh, we should talk about the big change in. Oh, I don’t know you know what no you pick one, because I’m oh man, what a bad week for twitch there’s a lot of things going on we’re talking about twitch. You want to walk us through a twitch thing. Sure I actually didn’t know the thing that’s in the dock was happening uh. I I saw this when I came in today.
There’S a lot happening with twitch right now, um, but this thing is that twitch announces Revenue. Splitting changes and apparently no one’s happy uh on Wednesday, the 21st twitch started notifying some streamers about incoming changes or upcoming changes to their user agreements. Twitch uses a baseline Revenue share of 50 50 on net revenue from subscriptions. I was just going to say this, but it’s in the notes so I’ll just read it from the notes behind the scenes.
Twitch also offered agreements with premium subscription terms to select larger streamers, a lot of larger streamers I’m inserting. This bit were on 70 30. For a long time, that’s not a new thing and that’s been known. That’S been relatively publicly known because of leaks for many years.
Um these premium subscription terms are yeah our common knowledge within the streamer Community, but there’s no framework in place to determine which streamers would be offered these premium terms or when to offer them. That is 100 True. The decision was made over a year ago to stop offering these premium terms. Do we have premium terms? Did we ever for flow plane? No for twitch? No, obviously we like get.
You know the money from float plane uh. I don’t think we did. Okay yeah! I just wasn’t sure I have no idea, though, all I really cared about the contract back in the day was like what does it? Not let us do which wasn’t much so it’s like cool um. The decision was made over a year ago to stop offering these premium terms, twitch felt they were not transparent or consistent in awarding them. That’S probably true, uh streamers already with these terms will keep them, but a 70 30 split for the first 100k and a 50 50 split for all revenue generated after 100k. Oh seems like streaming is expensive and Amazon wants twitch to actually make money for once and that’s going to be hard not going to work.
Interesting, twitch says 90, roughly 90 percent of streamers, with premium terms are unaffected because you know they don’t make over 100k. For the 10 recent bump in advertising, Revenue share up from 55 percent four. What up to for the ten percent? Okay, I get it I get it.
I read it wrong for the 10 remaining after that ninety percent uh the recent a recent Revenue bump in advertising Revenue share up to 55 is a great way for these larger streamers to make up most, if not all, of that Revenue uh great way. That’S that’s inserted from twitch just to be very clear, because no one likes ads more than 22 000 streamers requested that all streamers be moved to the 70 30 split and pay streamers faster uh. It sounds like that’s probably 22 000 streamers that didn’t already have the 70 30 split uh twitch responded by making the in quotes largest change to payouts in years, and they lowered the payment threshold from a hundred dollars to fifty dollars. That is actually really intense, because there’s going to be a really large amount of people that stream in order to make 50 bucks for tax reasons that I’m not going to go into in further detail. Really because I’m super curious, is it something you really can’t talk about? If you make money off it, it could technically be a business things that show up on.
It could be used against taxes. Oh so, as long as you get some kind of paying, you have to get some kind of payout that payout was a hundred dollars. Now it’s 50, it’s way easier to do, and if you want to be Shady about it, you can just pay the 50 in yourself you’re going to get 50 of it back. So it’s 25 dollars to be a business. So your gaming computer, yes, business expense. Whatever you show on stream, what, if you do more expensive things uh, we are not accountants.
We are not lawyers, I’m not saying you should do this, we’re not what I’m saying is that it’s been done by people. It has not been done by me, allegedly allegedly. It’S been done by people, it’s like super sketch, but I knew it was being done at a hundred, and I know it’s going to be a whole heck of a lot easier to do at 50.. That’S all okay, twitch Justified not increasing to 70 30 by stating that a streamer with 100 concurrent viewers who streams for 200 hours a month cost the company a thousand dollars over those 200 hours, yeah and they’re, the ones that make all the tech and host the Servers streaming is expensive Man, Okay, um, as hilarious as part of these changes.
Twitch, I’m actually surprised it’s like even that low to be completely honest, and I think that is because they make all the tech, and I guarantee that that does not include developer time, for maintaining these things and stuff like that, but anyways um. As part of these changes, twitch is also cracking down on streams that promote certain types of gambling, starting out uh starting October 18th. I think this is cool. I’Ve never liked gambling. My entire life, though I don’t the I don’t, know um slots, roulette or dice games that aren’t in the that aren’t in the US or other jurisdictions that provide sufficient consumer protection or banned okay uh prior to this prominent Chambers we’re publicly considering a twitch blackout to Protest, the site’s implicit promotion of damaging an addictive gambling Behavior, it’s pretty intense, there’s a lot of it um with that said, Sports gambling not banned but yeah, because switching the NFL are friends and in I think, relatively based on the overall length of the NFL, the Nfl, being cool with gambling is actually relatively new as well, but they do seem to be quite cool with gambling these days um.
So that’s a thing poker also remains unbanned. I think, because to a decent amount of people, it’s seen more like a sport than other forms. I can’t believe that um yep, which does actually sort of make sense it’s playing sports for money, but that’s also gambling, but also playing the game. It’S it’s. I can see poker, I see, is kind of a weird gray area yeah, but where there’s at least a skill component, yeah like like I’m, not knocking like poker players like yes, there’s a skill component, but you also can’t deny that there is a chance component um. If I try to play poker against someone who’s super good at it, I’m probably Gon na Get Wrecked yeah there’s more to it than just chance, but there is a lot of chance. Um discussion question: is this enough, or should streamers continue to push for full gambling ban? Oh it’s just about the gambling ban. I don’t know I’m not into gambling, but I also have to understand that that’s a personal preference thing I I’m not going to watch gambling content, I’m not going to get influenced by gambling content if twitch actually had a meaningful way to um to keep miners off The site which they don’t because it’s as far as I can tell like no one – does all kids watch unless you like take IDs yeah um, unless they, unless they have a way to do that, I think gambling has been pretty clearly set as an adult activity And I I don’t really see why we’re drawing a line between oh well, this kind of gambling and this kind of gambling uh when we know that such a large, large uh percentage of the twitch viewer Community is sub age of majority. So that’s my my biggest issue with it um.
You know beyond that. As far as I’m concerned, you want to stream yourself like I I don’t I don’t. I don’t know you flip a coin and if it’s heads you, you know, shoot a paintball at your head and if it’s tails, you shoot a paintball at your ass and you pay 10 bucks like I don’t I don’t care.
I might watch that yeah like. I would watch that if it’s you I would 100 watch that I would probably pay the stream money. I’M just saying like yeah, and you know the twitch chat, you know being all dialed into twitch and stuff they’re like yeah.
What about loot boxes, yeah, 100, yeah, there’s actually, there’s a loot box. This one a full plane shot mentioned: uh an opening, Pokemon cards, Red Dead, Redemption, 2 and and GTA online in GTA Online. If you go to the casino, do you get banned in Red Dead Redemption 2? They have, they have poker. I think they also have other card game things like do you get banned.
If you play well, it’s poker so no, but like you can make sure I play from there. For me, the bigger conversation is the revenue split changes. Yes, that is especially in light of uh how how aggressively YouTube has pursued. I think I remember saying like back when YouTube was like yeah YouTube gaming um. I remember saying like good luck with that YouTube, but, like I mean it’s been a long time, yeah and I feel like they’ve, only really been picking up a ton of steam within the last one to two years, but I mean that’s Google right, but they are Picking up steam, long game, long game, long game, I mean they’re winning in the way that mixer couldn’t when mixer did their big move. I remember talking a wancho about how it wasn’t enough yeah, their move wasn’t enough. They didn’t bring over enough streamers, and what YouTube streaming is really winning at right now is sure they’re paying to bring some streamers over there’s, also streamers, just coming on over yeah and not a small amount of them, and not just tiny ones that cost a thousand Dollars a month yeah for them to sustain them, yeah because there’s an army of those, I’m sure because they’ll see their favorite streamer move over. So they’ll move over too, which is that’s completely fine um, but we’re talking like really big streamers that are either approaching YouTube and then doing it for a lower amount than YouTube might have expected or approaching YouTube and doing it for nothing.
Maybe a little bit of seed money to make a cool video where they pick a purple uh. They pick a red object over a purple object. Because that’s what happens every single time I can.
I can definitely see YouTube, pushing hard uh. The mache in uh twitch chat, says I heard Ludwig is working um with YouTube um and BT TV and 7tv extensions. That’S uh! That’S pretty interesting, because I I mean it’s there’s. No! This there’s! No doubt that YouTube does not have feature parity with twitch, yet yeah, but Ludwig’s Chat thing. It’S a matter of time is really cool, though like they’ve actually put in put in work.
Uh I’ve looked into the the developer behind it he’s doing cool stuff. I finally met him: oh Ludwig, yeah yeah. He was that the thing I’m assuming yeah cool yeah super cool um. He asked me if, after you get a vasectomy um, you can still come um and uh. So I explained that sounds like a question he would ask.
I explained how it works. This is why I like the podcast yeah yeah, he’s knowledgeable about a lot of things, just not that vasectomy, but now maybe he is right. Yeah ever expanding.
Oh well now he’s an expert because I actually I I gave him the full Lowdown yeah, perfect low down pun intended. Could you tell him about how, like the doctor, recognized you and everything uh? No, I didn’t talk about that because he might need to know that uh he doesn’t now yeah. I didn’t. I actually forgot about that.
That’Ll be a fun experience with you probably hear about it on the yard, yep all right. Well, yeah! I don’t know the revenue split stuff sucks. Oh my God, Twitter chat.
Well, can you don’t leave us hanging? Yes, yeah carry on yeah um the revenue split stuff uh as a Creator having especially a streamer, a streamer who hasn’t done the proper. I talked about this. A few when uh wanches ago, but a streamer who hasn’t done the split out into having a heavy arm for VOD as well, because a lot of streamers have been doing that. I think that’s actually really fascinating. If you want to look into that, it’s very interesting.
Um but streamers, who are just streamers: they they Pro they in a lot of cases, don’t even have a huge Twitter presence, they’re, just they’re streamers they’re on Twitch. That’S what they do. Having your Revenue split changed on. You is very died. My stream deck stopped working, but I pressed the bleep button. It’S very uncomfortable with a f word in the middle of there like holy. That’S, not cool! Well, that that shakes your trust, absolutely and that’s going to inspire you to reach out and spread out start doing. Other things these people are many people affected this by this they’re gon na start. Looking into those other streamers other creators that have started branching out into other things, I’m going to start doing the dumb thing, and I need to the dumb thing from twitch’s standpoint – is that they basically took their most profitable users, their most profitable users and pissed them Off yep, oh daddy, Amazon’s knocking you got ta start making money daddy Jeff. You got ta bandwidth’s expensive, oh man. This is just so expensive.
So dumb .