“Stop Finding Ways to Exploit Your Creators”- Minecraft Creator Karl Jacobs Bashes Twitch Over New Sponsorship Format

Twitch has developed into a center for gaming and is continually adding new features and developing new methods for streamers to engage with their viewers. One of Twitch’s standout features is its monetization model, which enables streamers to make money in a variety of ways. Subscriptions, gifts, and “Bits,” a digital currency, are some means by which viewers may encourage streamers.

A new monetization model introduced by Twitch has come under fire from MrBeast‘s team member Karl Jacobs. Twitch recently introduced Sponsored streams, a new way for brands and streamers to collaborate on a live stream. Karl Jacobs responded negatively to the Sponsored Streams tweet, calling it a “bandaid solution”. The Minecraft Creator did not stop there.

Karl Jacobs slams Twitch for being negligent

When Jacobs attended the Twitch Summit, he discussed his experience with Twitch management. He described the meeting with management as “wildly unimpressed”. Jacobs stated that Twitch management, with Amazon’s backing, was unconcerned about market share.

Furthermore, Jacobs also had some words of wisdom for Twitch. “Focus on market share and pushing the live streaming market; don’t look for ways to exploit your creators,” Jacobs advised. He also mentioned the Twitch vs. Kick situation. He described Kick as “morally questionable”. Still surviving and competing with Twitch, Jacobs saw this as a failure of Twitch rather than a success of Kick.

Read more: “This Has Been Maybe the Worst Video Ever” – MrBeast Crew Member Karl Jacobs Entraps Himself in a Desert to Test the Limits of His Minecraft Prowess

Karl Jacobs also addressed the recent wave of layoffs at Twitch. He questioned Twitch’s strategy for these layoffs. Jacobs compared Twitch to YouTube, pointing out that YouTube took a long time to become profitable. According to Jacobs, Twitch should focus on becoming an irreplaceable product.

Twitch introduces sponsored streams

Twitch announced on April 5 that they are experimenting with sponsored streams. A new way to connect streamers and brands, the streaming giant stated that sponsored streams will be active from April.

• Streamer-Read Ads, which “support streamers in delivering branded talking points live and across multiple streams,” per Twitch.
• Sub Codes, which “let brands pay for subs, and share the codes with viewers off Twitch.”
• Sponsored Gift Subs, which “allow brands to buy and gift subs in Chat to viewers at scale.”
• Sponsored Sub Discounts, which “will offer SUBtember-like discounts for subscriptions on individual channels subs.”

In regard to the split going 50-50 between Streamer and Twitch, this new feature is not being welcomed by streamers. Excluding streamer-read ads, the other features included in sponsored streams will be giving Twitch 50% of revenue.

Twitch needs to change its strategy in light of backlash from creators. If this situation continues to arise, streamers would prefer other platforms like Kick and YouTube Gaming. What are your thoughts on sponsored streams? Let us know in the comment section below.

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