Twitch recently announced that it will prohibit content creators from showing cryptocurrency-based gambling on the platform. This reportedly includes popular websites like Stake.com, Rollbit, and Duelbits.com.
Twitch explained that these types of websites “aren’t licensed either in the US or other jurisdictions that provide sufficient consumer protection.” The statement goes on to say that “while we prohibit sharing links or referral codes to all sites that included slots, roulette, or dice games, we’ve seen some people circumvent those rules and expose our community to potential harm.”
The gambling website ban will take effect on October 18th.
That wasn’t the only controversial piece of news to come from Twitch. In another recent blog post, the organization revealed it was removing its 70-30 revenue split option for most streamers, instead opting for a 50-50 split that the company is hoping to make standard.
Prior to this announcement, Twitch had offered “premium deals” to some of its top streamers that saw those content creators take home 70% of the revenue they made off the platform. However, thanks to this policy change, those premium deals will no longer be offered.
As one would expect, streamers are not happy about this. In fact, Asmongold and ValkyRae both came out and said that excessive ads are killing Twitch, and not the high operating costs the company claims.
The Profit‘s Take:
Twitch is cutting creator revenue and the reasoning is that streaming costs a lot of money. For a decade, I’ve been saying that NONE of these platforms are sustainable because, these days, viewers are immune to traditional advertising (for the most part). When was the last time you DIDN’T click “skip ad” on YouTube? Twitch’s move was expected because all of these platforms don’t have sustainable business models. You can’t have a company where only the top 100 people in the world can make a living off your product. There has to be a rethink of how these platforms are monetized.