Twitch raises incentives for creators

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Twitch made two moves last week to open up money-making opportunities for broadcasters on its platform. First, the company expanded the subscription options for partners, adding new $10- and $25-a-month tiers. Then, it launched an affiliate program for non-partnered streamers to earn more money.

Twitch’s subscription beta helps partnered channels earn more money from their most devoted fans. The new plan adds $9.99 and $24.99 monthly subscription options, which in turn unlock new ways for communities and broadcasters. Prior to this, Twitch primarily offered $4.99 subscriptions to individual channels, though it is also possible to buy $8.99 Twitch Turbo and $99 a year Twitch Prime subscriptions.

Only channels within the Twitch Partner Program can participate in these subscriptions plans. The threshold for qualifying as a partner is relatively high. Broadcasters need to have an established and steadily growing audience and chat group, and go live at least 3 times a week. Partners receive a 20/80 to 60/40 split on subscription revenues depending on how popular they are.

The new affiliate program makes it possible for non-partners to earn money from Twitch. It’s an invite-only program, so not everyone can participate, though. To qualify for an invitation, streamers must have broadcasted at least 500 minutes in the last month, on at least seven unique broadcast days, to an average of three concurrent viewers, and have at least 50 followers.

Affiliates will be able to access and earn money from Twitch’s Cheering with Bits tool. Launched in 2016, Cheering is a micropayments feature based on a virtual currency called Bits, valued at $1.40 per 100 bits. These micropayments are sent to broadcasters as “Bits emotes” (emoticons) in a chat message. They’re available at five denominations: 1, 100, 1000, 5000, and 10,000. Revenue is split 70/30.

By adding new ways to earn money, Twitch is hoping to grow its creator community. The idea is that, by encouraging people to produce more content on its platform, it can then attract more viewers, or at the very least increase engagement among its current user base. Greater engagement then begets opportunities for Twitch to grow its average revenue per user (ARPU), via subscriptions and ads.

If 2015 was the year that brands and advertisers embraced online video, then 2016 saw the medium take the next step as live streaming took off.

Live streaming video refers to broadcasts in real time to an audience over the internet. While the concept of live streaming has been around for years, mobile-first video platforms with user-generated content have just recently begun to make serious waves thanks to improved video quality, faster broadband speeds, and enhanced mobile technology.

Online video has become a key part of the strategic business model for both brands and marketers as they seek more innovative ways to capture consumer attention. Creative live streaming video initiatives and campaigns are a way for companies to cut through the digital clutter and have emerged as the medium of choice not only for person-to-person sharing, but also for business-to-consumer (B2C) and business-to-business (B2B) communication. 

Brands are increasingly using live streaming to reach audiences. Its importance has grown significantly thanks to substantial investments by social platforms such as Facebook, YouTube, Snapchat, and Twitter to build and enhance their live-streaming platforms.

And advertising dollars are likely to follow. 88% of agency respondents stated that they “might” or “definitely will” invest in live stream video advertising over the next six months, according to a recent Trusted Media Brands survey.

BI Intelligence, Business Insider's premium research service, has compiled a detailed report on live streaming video that examines the eruption of online video from the perspective of both consumers and advertisers and assesses how live streaming is emerging as the medium's next catalyst for growth.

Here are some key points from the report:

• Live streaming video will further accelerate streaming videos overall share of internet traffic. Streaming video accounts for over two-thirds of all internet traffic, and this share is expected to jump to 82% by 2020, according to Cisco’s June 2016 Visual Networking Index report.
• Live video’s value comes from its unique ability to add an authentic human element to digital communications. As a result, brands are leveraging three main streaming methods to connect with their viewers: tutorials, product launches, and exclusive and behind-the-scene footage.
• Advertisers will continue to invest heavily in online video, especially as live streaming video gains traction. Already in the US, digital video ad revenue reached $7.8 billion in 2015, up 55% from 2014, according to figures from the Internet Advertising Bureau.
• While live streaming is still in its early stages, brands are leveraging micropayments, mid-roll video ads and direct payments from social platforms, to monetize their live streaming videos.
• The success of live streaming video hinges on brands overcoming a lack of measurement standards in the space, as well as changes in social media sites' algorithms that affect what content users see.

In full, the report:

• Examines the eruption of live streaming video.
• Explores the differences between platforms that host live streaming video.
• Breaks down successful approaches from both brands and publishers.
• Discusses unique monetization opportunities live streaming presents.

To get your copy of this invaluable guide, choose one of these options:

1. Subscribe to an All-Access pass to BI Intelligence and gain immediate access to this report and over 100 other expertly researched reports. As an added bonus, you'll also gain access to all future reports and daily newsletters to ensure you stay ahead of the curve and benefit personally and professionally. » START A MEMBERSHIP
2. Purchase & download the full report from our research store. » BUY THE REPORT

The choice is yours. But however you decide to acquire this report, you’ve given yourself a powerful advantage in your understanding of live streaming video.