STREAM REPORT NEWSLETTER

#113

Twitch CEO Reveals Future Plans

November 1, 2023

Welcome to Stream Report, a newsletter from Gaming Careers covering important news and updates in streaming and content creation.

In this issue: We examine Twitch CEO Dan Clancy's revelations about the future direction of the platform, dissect the ongoing competition and controversies involving Twitch, YouTube, and Kick, and delve into Twitch's latest feature, 'Bonus Sub Benefits', aimed at enhancing community engagement.

Twitch CEO Reveals Future Direction of the Platform

Twitch CEO Reveals Future Direction of the Platform
Twitch CEO Reveals Future Direction of the Platform

In a series of recent interviews, Twitch CEO Dan Clancy has provided some interesting insights into the future direction of the popular streaming platform. He discussed several key topics that indicate what to expect from Twitch in the future.

Discoverability Through Collaboration

Clancy emphasized the importance of collaboration in addressing discoverability issues on Twitch.

“If I could find a way to increase the rate of collaboration by a factor of 10, I think that is the best way to solve the discovery problem.”

This strategy, he added, needs to work for both big and small streamers.

Short Form Content

The CEO suggested that trying to mimic platforms like YouTube, TikTok, or Instagram may not be the right approach for Twitch.

“I think some of the ideas that existed before, really was to replicate what these other platforms are doing. And I think what we got was clarity that we can still use [short form], but use it judiciously without losing The North Star of what makes Twitch Twitch.”

Restricting Combined Chat When Multistreaming

Clancy believes that combining chat restrictions when multistreaming would potentially harm the Twitch experience, as it would dilute the sense of shared experience and community that Twitch is known for. He also added:

“The other reason is, if we did have you combine chat, you are now responsible for whatever is said on the chat on those other streams.”

AV1 Bitrate Savings

Clancy revealed that Twitch is working closely with the OBS team to strategize on AV1 Bitrate Savings. He hinted that they were close to announcing some plans at TwitchCon but wanted to refine the strategy. He also suggested that the savings from this strategy could eventually be passed onto the streamers.

“You always look at what is the cost, what drives your cost, and what can you do to bring it down [and passing on those savings to the streamers]”

Adjusting Twitch’s Approach to Communication

Clancy talked about the need to adjust Twitch’s approach to community communication, acknowledging the risks of transparency.

“There’s always a chance that you say something a little differently than what you’d ideally want. Right? But I think for us, the upside is massive about being transparent.”

He believes that being transparent with the platform’s roadmap is crucial, despite the risks, adding that streamers want to know Twitch’s roadmap and give input.

These insights from Clancy offer a glimpse into the future direction of Twitch, suggesting a focus on collaboration, careful and thoughtful use of short-form content, preserving the unique Twitch community experience, and a commitment to transparency and communication with its user base.

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NICKMERCS Sparks Debate in Twitch’s Strategic Shift

NICKMERCS Sparks Debate in Twitchs Strategic Shift
NICKMERCS Sparks Debate in Twitch’s Strategic Shift

The livestreaming landscape has seen significant shifts recently, as platforms vie for top-tier talent and adapt their strategies in the face of intense competition. In the midst of this, Twitch, YouTube, and Kick have emerged as key players, each making moves that have stirred up the industry.

Twitch, long dominant in the streaming world, has seen its reign challenged by YouTube and Kick. These platforms have been securing both exclusive and non-exclusive deals with renowned streamers, intensifying the competition for streaming talent. To adapt to this pressure, Twitch CEO Dan Clancy announced at the 2023 TwitchCon event a strategic shift for the platform—phasing out high-value streamer contracts. Clancy stated that the era of bidding wars for exclusive talent was not conducive to a sustainable business model.

Amid these changes, streamers have been vocal about their experiences. NICKMERCS, who recently moved to Kick, made headlines during his debut stream on the platform. He accused Twitch of withholding his subscription revenue for an extended period, compensating him with a fixed monthly amount instead.

Clancy, in response, addressed the situation, emphasizing the role of Minimum Guarantee (MG) in the industry and clarified that it does not imply a lack of subscription revenue for the streamer. This statement was supported by Ryan Wyatt, former head of YouTube Gaming, who explained that the MG is a standard practice and does not indicate a diversion of subscription funds from the streamer.

As platforms scramble to secure talent, Kick has emerged as a competitor by offering an attractive 95/5 subscription revenue split. This has lured several prominent livestreamers, including xQc, Amouranth, and most recently, NICKMERCS.

However, NICKMERCS’ move to Kick has not been without controversy. During his debut stream, he mentioned that his deal with Kick allows for gambling streams, a claim that was denied by Kick’s head of strategic partnerships. Reports suggest that NICKMERCS might instead have a separate agreement with Stake.com, a gambling site owned by Kick co-founder Ed Craven.

These developments highlight the rapidly evolving nature of the livestreaming industry. Twitch’s decision to move away from high-value streamer contracts and Kick’s emergence as a competitor in both the streaming and potentially, the gambling space, underscore the dynamic, competitive, and controversial nature of the industry.

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Twitch Enhances Community Engagement with Sub Benefits

Twitch Enhances Community Engagement with Sub Benefits
Twitch Enhances Community Engagement with Sub Benefits

After announcing the removal of multi-stream rules and allowing streamers to simulcast on any streaming platform, Twitch is rolling out a new feature that lets creators customize their subscriber perks on the subscription page. This feature, known as Bonus Sub Benefits, empowers Affiliates and Partners to promote additional subscriber incentives directly from the Creator Dashboard.

The initial benefits available for customization include a Subscriber-Only Discord Channel and Merchandise Discounts. These options serve as off-Twitch perks, providing further incentives for community support. This update is part of Twitch’s ongoing effort to aid creators in promoting their benefits effectively and fostering enhanced community engagement.

Creators can effortlessly add Bonus Sub Benefits via the Creator Dashboard. By accessing the Settings section and navigating to the Monetization tab, streamers can visit the Bonus Subscription Benefits menu to configure their chosen perks.

By enabling this feature, streamers can ensure that viewers interested in supporting their channels are aware of the additional benefits offered alongside standard subscription perks such as emotes, badges, and ad-free viewing.

Currently, Twitch allows the promotion of subscriber-only Discord access and merchandise discounts, but there are plans in place to expand the list of available bonus benefits in the future.

Learn More

News Highlights

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The founder of Gaming Careers with a borderline unhealthy obsession for cameras, microphones, and all things streaming. He gets mistaken for Stephen Merchant at least 5 times a day.

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