Twitch is cutting payments of Big Streamers and that could be the reason why streamers are leaving Twitch for other platforms.
In the last month, only Twitch has lost its two big streamers – TimTheTatman and Dr Lupo.
In the report, it says that Tim and Lupo leaving the site are because of “intentional changes” to how the company goes after exclusive contracts and deals with famous streamers.
While talking to ex Twitch employees it was clearly quoted that the site has “started to offer big streamers less money for similar amounts of work” and that it is not offering the same types of contracts that it used to in the past.
Many of the employees also claimed this was the reason for Dr Lupo’s departure, who got “lowballed” by the site during his most recent contract negotiations.
This piece of information was related to Lupo’s previous contract which started when Tyler ‘Ninja’ Blevins and Michael ‘shroud’ Grzesiek left for exclusive deals with Mixer.
One unnamed former Twitch employee claimed “The public has a very uninformed perspective on Twitch’s economics.”
“Anytime [a streamer’s] been paid a ton, it’s been a lot more about brand than [the company’s return on investment],” the employee said. “The commerce business on big channels tends to flatline at some point, and streamers don’t want to play ads — when that’s Twitch’s big upside potential.”
Furthermore, attorney Ryan Morrison, who runs the Evolved talent agency representing stars such as Felix ‘xQc’ Lengyel, confirmed Twitch is offering fewer and fewer contracts, and the ones they do are worth less than those that came before.
“And outside of [North America], it’s just about none at all — at least in my experience,” Morrison told the Post. “That is not to say there are not some very lucrative and amazing deals coming down the pipes still, but it’s not where it once was.”
Twitch is feeling overconfident right now and that is why they are not taking streamers leaving the platform into consideration, considering their total watch hour is more than YouTube and Facebook combined which does the work for them. Although streamers does have many other options to earn money apart from just the contract, let’s see how this new Twitch cutting payments approach works out for the site.