YouTube Gaming’s former lead has weighed in on Twitch’s handling of their streamers, and suggests what they should do to help improve overall revenue for creators.
When it comes to streaming, the two main outlets constantly finding themselves going head to head are Twitch and YouTube Gaming. Over the years, both platforms have grown to the point where they now have exclusivity over certain streamers.
Just recently, Twitch announced they are planning on cutting subscription revenue for some of the platform’s top streamers in an effort to continue pushing ads.
It’s got everyone talking, including former YouTube Gaming lead Ryan Wyatt. No novice to the streaming space, the once-head of Twitch’s biggest competitor believes the Amazon-owned platform is making a mistake with the new revenue split.
Wyatt begins the post by declaring his love for Twitch — it was his “first home” when he began streaming back in 2010.
However, Wyatt quickly weighs in on the way Twitch manages and compensates for its talent: “It is disheartening to take creator earnings in this fashion and I am hopeful they will get this right in the long term.”
The former YouTube gaming boss then breaks it down into two categories — non-ads revenue, and infrastructure costs — revealing what he thinks needs to be done about the two areas.
“Regardless if size, the creator should be getting a disproportionate amount — this shouldn’t be even up for debate,” he explained. “Creators drive a disproportionate amount of the work to grow non-ads revenue. They are doing the leg work to move these products, unlike selling ads against their content.
“I am certain their infrastructure costs are significant, despite even an Amazon ‘discount’. You don’t have a lot of levers to pull to grow revenue if you aren’t scaling watch time substantially. This is the conundrum live-only platforms will face.
“The best way for Twitch to grow monetization would be not to be shortsighted and take advantage of their live dominance by adjusting revenue share, but rather leverage that dominance to grow non-live gaming viewership on the platform to help scale their ads business out.”
People online have been responding positively to Wyatt’s suggestions, praising his optimism and “forward thinking” as well as the way he appears to see streamers are “real people” and not just a way to make money.
Twitch’s decision to ban gambling on the platform is one positive move many have highlighted, but this recent news shows there’s still a long way to go.