Twitch Sponsorship System

Rose Andres Amiel April 10, 2023
Twitch Sponsorship System

Twitch is once more at the heart of a heated discussion as it attempts to update its sponsorship program.

Twitch has seen a meteoric rise in popularity in recent years, becoming one of the most popular live-streaming sites globally, with millions of spectators and streamers. Twitch has, however, come under increasing scrutiny for its policies and procedures as it continues to experience tremendous growth. These problems have included everything from disagreements about Twitch’s revenue-sharing scheme to claims of unfair treatment of particular creators. 

Twitch stated on April 4 that it was testing a new sponsorship system that would let advertisers pay for streams using subscriptions that were given to them.

With the help of this new tool, streamers could be able to generate additional income, and sponsors will have a more direct method to support their favorite talents. Many streamers, however, are wary of this shift because they worry that Twitch would take a cut of these donated subscriptions. Popular streamers have reacted strongly to the announcement and expressed their reservations about Twitch’s new sponsorship program. The Escape from Tarkov streamer Pestily criticized Twitch for trying to take a portion of sponsored material. Bearki urged Twitch to figure out a method to cease taking half of his revenue, while PaladinAmber voiced a wish to handle her sponsorships and income on her own.

Rust broadcaster HJune lamented that there was “no integrity” surrounding Twitch’s promises to raise creator income, and itmeJP branded the idea of sponsors paying through gifting subs as “awful.” Since Twitch’s new sponsorship structure is still being tested, it is unclear how it will operate and how much of a share Twitch will receive. The lack of faith in Twitch’s revenue-sharing scheme is highlighted by the fact that streamers are growing dubious of the platform’s motives and fear that the new approach would result in even less income for them. 

It’s unclear how Twitch will respond to these issues and whether the network will change its new sponsorship system at all. However, the enthusiastic response from streamers emphasizes the value of open dialogue and cooperation between streaming platforms and content creators. Given that Kick, a new streaming service backed by Trainwreck, asserts to give streamers more revenue-sharing alternatives, Twitch must take these problems seriously and take action right now.

Twitch must continue to earn the confidence of its content producers as streaming services compete more fiercely.