Twitch CEO Gives Us The Truth

In a recent live-stream, Harris Heller convinced the CEO of Twitch (Dan Clancy) to have an honest chat about some critical topics that are at the core of recent Twitch discussions.If you have time, the full 2 hour discussion on Senpai Gaming’s YouTube is worth a watch. Otherwise we’ve provided the TLDR below.

The Real Reason for the 50/50 Revenue Split on Twitch

Fortunately, the burning question was addressed: Why does Twitch follow a 50/50 revenue split model when other platforms offer a more generous split? The answer from Dan Clancy was straightforward: Running a live streaming platform is no easy feat, especially when you’re supporting over seven million monthly streamers. The costs of infrastructure and maintenance are substantial, making it challenging to provide everyone with that coveted 70/30 split. Dan is confident that Kick’s 95/5 revenue split is not a sustainable plan.

Harris suggested that Twitch could adopt AV1 encoding to offset some of that cost Dan was talking about. For those not deep in the transcoding world, AV1 is a video compression standard that promises to deliver high-quality at a fraction of the bandwidth. This not only promises enhanced video quality but could also reduce costs for Twitch in the long run.

Suprisingly, Dan revealed Twitch is already exploring the idea of client-side AV1 transcoding, which means the viewers’ devices will handle the encoding load, saving valuable server resources. This innovative approach could be key to bringing cost savings that could pass onto the streamers. While there’s no set timeline, it’s a clear sign that Twitch is thinking ahead.

No More Combined Chat: Why Twitch’s New Rule Matters

One key decision from Twitch has been to disallow combined chat box overlays when simulcasting on various platforms. It may seem like a strict move and there was a lot of speculation around why, but Dan assured us there are some very good reasons:

Community: Dan expressed that it’s about preserving the unique Twitch community experience. Keeping chat streams separate ensures that the essence of the Twitch community remains intact. Recognizing and interacting with your viewers is what makes Twitch special, and this rule aims to keep it that way.

Keeping things safe: moderation and responsibility are crucial aspects. If chat streams were combined, you’d be responsible for comments made on other platforms, even if you lack visibility into the chat’s context. This could lead to unjustified bans and conflicts. The rule’s purpose is to reduce such issues and maintain a positive streaming environment.

While this new rule might raise some eyebrows, rest assured that streamers are unlikely to face any issues unless there’s a dire need to enforce the rule due to inappropriate content. It’s a measure in place to ensure that you remain accountable for the content displayed on your streams.

Community Connection

Dan plans to be less “Twitch CEO” and connect directly with streamers on their channels, breaking away from a more controlled approach. He admits this shift towards openness and personal interaction contains risk, but believes it will in time create a more open dialog between streamers and Twitch. He’s the first Twitch CEO to stream on the platform.

What Next?

The conversation with Twitch’s CEO, Dan Clancy, has provided insight into the platform’s future and the man at the helm. The landscape is evolving, and we’re excited to see what comes next. Got some thoughts? Share them with us on our Discord server.