Streaming

Penalty on Twitch for Celebration?

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Shortly after coming under scrutiny for restricting streamers abilities to respond to DCMA claims on their content, Twitch found themselves under scrutiny by the streaming public. This time, for celebrating.

Celebration?

I am sure everyone reading this is trying to figure out how in the world someone could get in hot water over celebration. Let me offer some clarification. If this is the case, you have picked one of the best articles in the world to read about it because I am going to offer some clarification.

Twitch is testing a new feature titled (can you guess it?) Celebration. This new feature puts a button labeled “Celebrate” in between the follow and subscribe button. What does this button do you ask? Well let me tell you. This button is like a donation button. It allows viewers to give money outside of bits and subscriptions directly to the streamer while displaying an explosion of confetti or fireworks on the broadcaster’s stream. Now I am sure you are asking yourself “What is wrong with that?”. Well, let me tell you why the streamer community is in uproar. Twitch is currently taking 50% of funds gifted to the streamer via the celebrate feature.

Here’s what it looks like via @CeddyOrNot

Isn’t that the standard?

You may find yourself thinking “But Foxx, I seem to call that 50% is like the standard cut for Twitch”. To that I would reply with “That depends”. Let’s do percentages and methods of money making its way to a streamer via Twitch.

Currently, there are two methods for currency to be transferred from a viewer to a streamer. These are Bits and Subscriptions. For this discussion we will be using the United States Dollar (USD) as the currency to purchase Bits and for Subscriptions. Your mathematical results will vary if your currency is different.

Assuming you only buy bits at their base rate ($1.40 for 100 or $7.00 for 500), approximately 72% of your purchase is transferable to a streamer. The other 28% goes directly to Twitch. There are additional discounts that you can obtain by buying in volume but that makes for hard math and no one wants to do hard math while covering a story.

For Subscriptions you have three tiers. These tiers are Tier 1 Tier 2 and Tier 3. Each has their own Subscription price. The most common, Tier 1 has a price of $4.99. The next, Tier 2 has a price of $9.99. Finally Tier 3 is rocking a premium price tag of $24.99. For the sake of keeping this out of the realm of math that might include the phrase “my brain go ouchie”, we’re going to round these numbers up to $5, $10, and $25 respectively. The rumor mill around the internet is that most streamers get a 50% cut of subscriptions.

There Must Be Some Other Way?

If you find yourself wanting to give the most you can to your favorite streamer(s) but want to cut out the middleman (Twitch. Its ok to say Twitch here), There is a way. Twitch has no rules against using third party tools such as Paypal or streamlabs tips. This gives 100% directly to the content creator (minus transaction fees that may be included). The trade-off with this method is the streamer assumes liability for chargebacks which could wreak havoc on an account. This is why some content creators do not accept tips outside of Twitch’s methods.

A Piece of the Pie

The Twitch Celebration feature gives the appearance that Twitch is looking to get into this third option as well. While this beta feature again takes the liability off of streamers, the 50% share in whatever funds seems incredibly steep with this method of tipping being more like Bits than Subs.

Too Big of a Slice

Anger arose with the news that Twitch is currently taking 50% of all celebration tips. Streamers and viewers alike were quick to take to Twitter to voice their discontent with the decision. Lioran, the developer behind the Stream Deck alternative LioranBoard had this to say about it in the LioranBoard Discord.

Gonna add a note here regarding the new Celebrating system twitch made and has been in testing phase. If the system isn’t changed to be at least 10% share going to twitch(currently 50%), I will not add this to the twitch triggers nor should you use this feature. My guess is the final product will be 25-30% cut going to twitch and should be avoided.

What Does the Foxx Say?

I have mixed feelings about this feature. On the one hand, I like Twitch adding new features to their streaming service. I am all for removing financial liability from me and putting on anyone/everyone else. In that part of it, I am all for this. On the part where Twitch seems to think its OK to take 50 F*#%ing percent of something people intended for the content creator, that my friends, is bat-s#*% crazy. I don’t feel that the feature needs to die in a fire like some on Twitter seems to think, but if this number doesn’t drastically come down, I think I am OK with burning the house down to kill the spider.

What do you think?

To throw your own Twitch Celebration, check out Table of Content at 8 pm EST every Sunday on Twitch. Also posted every Tuesday on our YouTube channel.

Red_Foxx15
the authorRed_Foxx15
Red_Foxx15 built his first computer when he was 10 years old. He's proved since then that he cares way too much about tech and will not shut up about it.

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