Facebook out-incentivizes Twitch in the streaming war
For a long time, Twitch has offered creators a 50% cut of the subscription revenue they earn. However, Facebook Gaming is outdoing Twitch by offering a 100% revenue cut for streamers. The only catch? The subscriptions have to be paid for using Facebook Pay, which is an additional small but inconvenient step that most subscribers probably won’t mind doing for their favorite streamers. Facebook Gaming shared the news in a November 3 blog post and described it as their new way to help out streamers grow. At the same time, Facebook Gaming is giving content creators a $5 to $20 bonus for each new subscriber they get until the end of 2021 with a $10,000 cap. The newly added feature is part of Facebook Gaming’s $1 billion investment in content creators throughout 2022 and is available in all markets that have the Subscriptions feature. The same blog post explains that the ongoing system gives streamers full revenue from subscriptions, with a 15% to 30% revenue loss if the subscriptions are purchased using a mobile device. However, Facebook Gaming explains that they have a new workaround. All content creators have to do is to share a promotional link in their chat that allows users to pay for subs without having to go through the mobile platform. This way, streamers can get a full revenue cut even for subscriptions from mobile users. Of course, Twitch remains the king of streaming platforms. However, if Facebook Gaming keeps on doing this, it may not be long before Twitch relinquishes its throne. This is especially true if the streaming platform keeps being the target of massive data breaches and investigations.
