Twitch Experiments With Intrusive Ads That Piss Off Its Most Important Asset, Its Talent
from the twitch-ain't-tv dept
As any internet platform matures, the growth it undergoes will inevitably lead to experimenting with revenue models. For a healthy chunk of the internet, advertising plays some role in those experiments. And, like anything else, there are good experiments and bad experiments.
But I am very much struggling to understand who in the hell at Twitch thought that breaking away from live streams to force viewers to watch commercials, all without the control or input of Twitch streamers, could possibly be a good idea.
“Beginning in September, as part of an ad experiment, some viewers may begin to notice that they are receiving ads during streams that others in a channel aren’t receiving,” the company wrote on its website. “Like pre-rolls, these are ads triggered by Twitch, not by the creator.”
Crucially, these ads utilize Twitch’s “picture-by-picture” functionality, which basically means that the stream you’re watching pops out into a smaller window while the ad rolls in the main window. However, ads will still steal the show from some viewers, with streamers none the wiser as to who can hear what they’re saying (picture-by-picture mutes streams) and, therefore, understand what’s happening on stream while ads are playing.
If this reads as though Twitch were trying to turn its platform into some flavor of broadcast television, where the content is broken away from in the service of displaying advertising, that’s because that’s exactly what this is. Which doesn’t make any sense. Twitch is not television. Sure, some streamers choose to break away from their own content for advertising. In fact, doing so staves off this new process of forced breakaways. But many streamers don’t do that. For a viewer to be torn away from the content that continues on, muted, all while they’re forced to view ads, would be stupid on its own. To give streamers not only almost zero control over whether this happens, but also zero visibility into when and to whom it’s happening, can only serve to piss everyone off.
Which is exactly what it did.
“You’re not YouTube,” said Twitch partner ThatBronzeGirl on Twitter in response to Twitch’s announcement. “When ads play in the middle of the stream, viewers actively miss out on content (muted or not). Add this to the fact that viewers are hit with an ad as soon as they enter a stream, so channel surfing is cumbersome. Idk why y’all hate viewer retention.”
“This means either one of two things happens: 1) I schedule a break in the stream to have control over ads running that are proven to drive viewers away. 2) Viewers get an ad randomly that is all but guaranteed to drive them away. Which of those is for us though?” said variety streamer Deejay Knight.
“If I don’t play enough ads, Jeff Bezos literally comes to my stream and pushes the ad button, what do I do,” said former Overwatch pro Seagull.
Let’s be clear, Twitch is a thing because of the talent that chooses to use it. It’s bad enough to put a new advertising model in place that pisses off viewers. But piss the talent off and they’ll simply go somewhere else, particularly when the viewers voice their frustration by removing their eyeballs. Some of this seems to also be Twitch not understanding that the platform is no longer video game let’s-plays. The content is wide and varied and much of it cannot function with this sort of intrusive advertising.
“A streamer could be talking about suicide prevention, and up pops an ad,” said Scottish Twitch partner Limmy. “Depending on the implementation, the streamer would either be unaware, which is bad, or the streamer has to announce a forced ad break at an inappropriate time.”
“We’re not all Overwatch and Fortnite,” said dungeon master MontyGlu. “In narrative streams such as DnD live shows and RPG game streams, 10-30 seconds removed could completely deprive people of story, context and investment.”
As the Kotaku post notes, part of the problem here is that all the monetary incentives for streamers compared with the platform are horribly misaligned. Many streamers make most of their money through subscriptions and brand partnerships. The money they get from Twitch is mostly an afterthought. Twitch, on the other hand, makes gobs of money from advertisements. It’s a scenario in which the platform is incentivized by advertising while the talent is very specifically incentivized by a lack of advertising. More ads drive eyeballs away, which means less lucrative partnerships and subscriptions.
If Twitch wants to push more ads, it desperately needs to get the streamers on board.
“While I’m not allowed to say specifics, Twitch has the worst CPM ad-revenue share to creators with their standard contracts (read: not the big shots with custom negotiated rates),” said Minecraft YouTuber and Twitch streamer KurtJMac. “They want ads to run because they make bank. Pay a fair rate to creators and we’d be glad to run ads!”
Somewhat amazingly, Twitch has stated that it isn’t backing down. The experiment will run its course, the company said, and it will review the data afterwards. I simply can’t imagine that said data will show that intrusive ads that everyone hates are good for the company.