Pay Cuts Could Be Coming To Content Creators On Two Massive Streaming Platforms

Content creators that post on Loco and Rooter in India have reportedly been subject to big pay cuts. In fact, some streamers have been let go from the platforms entirely.

Entrackr recently spoke to over a half dozen creators from both platforms who claim their pay had been cut in half. Some of the streamers said that their pay was reduced by almost 60%. This came after one streamer said Loco and Rooter would be evaluating the performance of creators for three months starting in July.

“Prior to the [evaluation period] notification, the platform had about 150-200 female streamers, which was cut down to 50 streamers because they [Rooter] had issues regarding payments,” one streamer told Entrackr.

Rooter and Loco are the two biggest streaming platforms in India. Despite the recent pay cuts for creators, it doesn’t appear that either company has struggled with money. Earlier this year, Rooter raised $25 million while Loco secured $42 million in a Series A funding round.

It appears that both businesses are following in Twitch’s footsteps after the organization announced it would be moving to a 70/30 revenue split with its content creators in September. Since then, Twitch’s chief monetization officer, Mike Minton, has responded to concerns about this proposed policy change explaining that it was necessary.

“The important thing for me is that me and my teams are 100% focused on improving your ability to make income,” Minton said. “At the end of the day, we’re setting a framework for the long term so that you can all keep earning as long as possible and the next generation of streamers can have that same opportunity. We did look at all possible options. Could we do it, could we offer 70/30 widely and broadly, and the answer is no. It simply is not viable for Twitch in the long term.”

(All information was provided by Business-Standard, Entrackr, and Eurogamer)