Twitch CEO Dan Clancy has revealed that most of the platform’s revenue comes from viewers supporting their favorite streamers, not any crazy Amazon deals.
For the longest time, Twitch has dominated the livestreaming space. YouTube, Facebook Gaming, and others have tried to knock it off its perch, but the Amazon-owned platform continues to lead the way.
There have been claims that Twitch is actually a massive money loser for Amazon, to the tune of $2 billion, and that it may be sold off or shut down in the coming years. However, that hasn’t been the case to this point, and the platform has already announced some big changes coming in the next year.
Given the Amazon backing and massive sponsors that advertise on Twitch, you may think that the majority of their revenue would come through ad sales and similar outlets. Yet, that isn’t the case.
Two-thirds of Twitch’s revenue is actually subs
According to Twitch CEO Dan Clancy, the majority of Twitch’s revenue actually comes from viewers subscribing to their favorite streamers and supporting them.
“One thing that many people don’t realize is two-thirds of our revenue comes directly from our viewers supporting the creators that they love,” he told Axios at an event in Cannes, France, on June 17.
Clancy had previously told TheMediaLeader similar back at TwitchCon, noting that it’s a figure “a lot of people are surprised by”, given the reliance on ad revenue with other platforms.
In that TwitchCon chat, the Twitch CEO noted that viewers are “paying for patronage and status and reward in the community.
“Often, when I talk to brands, I say that’s an indication of their emotional connection to the streamers and what they’re watching.”
In a bid to further target that, Twitch is testing Sponsored Subscriptions, where, as the name suggests, brands can help with discounted subscriptions to channels. Twitch has done this with SUBtember over the years, but this new tool could be utilizied at any time.
Content shared from www.dexerto.com.