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This post accurately mentions the events of the last week but doesn't really capture the full scope of what's going on with Twitch and the gravity of the situat
by jmyeet 4y ago
This post accurately mentions the events of the last week but doesn't really capture the full scope of what's going on with Twitch and the gravity of the situation.
On the streaming front, Twitch has made a number of changes in the past few months. Typically Twitch Partners had to exclusively live stream on Twitch. They've relaxed these restrictions to really soften the blow for what's coming. A big change (just announced today) is that subscription splits to 50-50 in almost all cases. A lot of mostly bigger streamers were grandfatheered into better deals (ie 70-30).
If you don't follow Twitch, the $5/month subscription (and Twitch Prime that came later for Amazon Prime members) really did create a way for smaller creators to be able to survive where they otherwise couldn't on ad or sponsorship revenue alone.
But Twitch has been trying to move away from subs because advertising scales so much better for Twitch. The general guideline for ad density now is 3 minutes per hour and you could get 6 ads of pre-roll on joining a livestream. It's kind of crazy how much they're pushing it. This really gives the impression that Twitch is desperate for revenue now they're owned by Amazon. In today's announcement about the sub split changes they basically said 200 hours/month of live streaming costs them $1000/month. That might well be the retail cost on EC2 but it's nowhere near the true cost (which is much less).
Now in the last 2 years or so, gambling has really started to dominate the platform. This is quite literally people playing slots on auto-roll for hours every day, sometimes for $1500/spin where each spin may well be 6 seconds. This has been driven by largely unregulated crypto casinos like stake.com. I say "largely unregulated" because stake.com for example is registered in Curacao.
The likes of xqc and Trainwrecks (2 of the biggest streamers on the platform) were getting paid in excesss of $1 million/month each to play slots on stake.com. That's how big this is.
Twitch announced yesterday that most pure luck gambling (eg slots, dice) that weren't registered and legal in the US (because of greater regulation) would be banned from the platform.
It's hard to say why the timing of this is now. Some speculate this is because of the streamer ItsSliker being exposed for scamming $300k+ from other streamers and even viewers over 1-2 years to fund a sports betting addiction (note: the Twitch ban doesn't apply to sports betting).
Gambling has been controversial on Twitch and this blew up with the Sliker drama, which led to an entirely separate issue being raised: the alleged cover-up of a sexual assault of one streamer by another. This event was allegedly covered up by a big streamer (Mizkif) who is a member of a large organization called OTK. It was announced there'd be an independent investigation of this and he was suspended from the org yesterday.
These are of course serious allegations and should be treated as such and they may well have criminal consequences. It's worth noting that the cover-up accusations came from Trainwrecks after a fresh round of gambling criticism (including by Mizkif) in the wake of the Sliker scamming drama. The victim has since spoken out on the issue and said Train made that public accusation with her blessing and support.
All of this has really rocked the Twitch world and, if anything, should just show you how much money there is in gambling, how damaging it is and how much it corrupts.
- ARandumGuy 4y agoI'm not convinced that the changes to Twitch's Partner programs have anything to do with this gambling ban. I think the two events just happened to coincide. The real question is "why did it take Twitch so long to ban non-US gambling?" Like you mentioned, the controversy from these gambling streams is not new. Did Twitch decide that the controversy finally outweighed the revenue they generate from these streams? Did Twitch fear that they faced potential liability for hosting these streams? Or did someone at Twitch leadership suddenly develop a conscience?
- jmyeet 4y agoThe change in sub split is entirely unrelated to the gambling. I don't mean to imply otherwise. That's been coming for awhile. I only bring it up because it's part of larger Twitch changes this year. It's going to hit streamer revenue. The banning of crypto slots is another massive blow to a lot of streamer revenue. To be clear, I 100% support the crypto slots ban on Twitch.
- mschuster91 4y ago> Now in the last 2 years or so, gambling has really started to dominate the platform. This is quite literally people playing slots on auto-roll for hours every day, sometimes for $1500/spin where each spin may well be 6 seconds. What I don't get: who the fuck watches this kind of stream, and why? Are the viewer counts actually real or is all of this just a massive scam where everyone is inflating counts with the endgame of defrauding advertisers?
- jmyeet 4y agoTo be clear, I 100% support the crypto slots ban. Regulation is one issue. Another is the general young age of Twitch viewers. But the biggest reason of all is just how destructive gambling addiction is. It's also worth noting that not all slots streaming is what's called "cash balance", meaning the streamer is betting real money. A lot are betting fake money where their losses aren't real but neither are the winnings. It's never advertised that this is the case. But this is an even worse level of deception. That all beiing, I too am fascinated with the psychology of watching someone else play slots. It does seem to be real. Watching someone quite literally lose $100k+ in an hour has a certain fascination. There are big wins too. Trainwrecks for example has spun a $7m+ win. You could more generally ask why people watch other people play video games. I never understood why (years ago). But it makes sense. You get to exxperience someone else playing something for the first time (which you can never do again). You get to get a lot of the psychological "pay off" for playing a game without the investment. I imagine slots is similar. If you read about gambling addiction, it's not the wins that are addictive. It's not even the losses. It's that period of not knowing the outcome after you press the spin button. That's what people get addicted to. So a viewer can get that same pay off from watching someone else hit the spin button. At least that's my guess. Once you get over the fascination of watching money disappear that fast (which for me didn't take that long), it doesn't appeal to me at all.