Both Twitch and YouTube are backing out on big-money content deals with top live-streaming gamers due to unsustainability.
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Big-Money Deals on Twitch, YouTube
For years, both streaming companies made a fortune from seven to eight-figure offers through content deals with top livestreamers. It has been three years since the companies started competing on their live streaming services by enticing gaming talents.
The platforms looked forward to increasing their advertising revenue by offering live play streams by popular video-game personalities and influencers. These personalities have already established a fandom with thousands to millions of fans.
Regardless of the competition, many gamers have returned to Twitch after seeing a decline in viewership when they streamed on YouTube. Although YouTube is bigger when it comes to video entertainment, Twitch retains its popularity within a specific niche, gamers and esports enthusiasts.
Twitch, YouTube Back Away From Deals
After years of competition, both platforms are finally letting go of bid-money content deals. Twitch CEO Dan Clancy stated that the deals created a bidding war between platforms. Moreover, he also thinks that it is not a sustainable strategy for business.
Meanwhile, YouTube is reportedly doing the same as well. Although it is not confirmed yet, the platform is decreasing the size of deals with top gaming live streamers. In addition, contract lengths were trimmed down.
Clancy also confirmed that while custom deals are still done in Twitch, the company is starting to reduce it significantly. For now, Twitch gamers are now allowed to stream simultaneously on other platforms making it a win-win situation for both parties.
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