Given how heavily reliant most media platforms are on ads, it would make sense to assume thatTwitchalso falls into that category. However, during a recent interview, Twitch CEO Dan Clancy took the opportunity to provide some clarification about how exactly Twitch earns most of its funds, and the answer isn’t what you’d expect.
In a conversation withThe Media Leader,Clancy shared that “two-thirds of Twitch’s revenue comes from subscriptions” and not ads, as most might initially assume. Considering that subscriptions, unlike on some other platforms, are not required to access content on Twitch, it stands to reason that consumers are motivated by other means.
Twitch Reveals Most Of Its Revenue Is From Viewer Subs
Twitch Subscribers Are Being Motivated To Subscribe By Their Communities
Our Take: It’s Only A Bit Surprising That The Biggest Income Isn’t From Ads
Twitch’s Community-Focused Foundation Fuels Its Success As People Seek Out Online Connections
While it is shocking to hear that any media platform isn’t primarily funded by ads these days, in a way, it somewhat makes sense for Twitch. While the opinion onhow well Twitch treats its streamersand viewers can vary widely depending on who you ask, there’s no denying thatTwitch does offer the opportunity to create a community in a way that no other platform does.
As it stands, Twitch’s main non-mobile-focused competitor is YouTube, but even it does not offer the same community feel that Twitch does. Yes, you can live-stream there as well, but it’s not the primary function of that platform and not why people generally seek it out.Twitch, on the other hand, is sought out for primarily one reason alone: people want to connect. Engaging with a creator in real time, as well as others in the chat, offers a connection that you otherwise won’t find in the comments section on another platform.
During a time when people have become more closed off to the outside world than ever, online connections are vital, and that is why these communities have become so important. This is what keeps driving viewers to keep their subscriptions active and what encourages them to keep coming back to Twitch. The connectionsTwitchhas fostered on its platform remain unmatched and are a clear indicator as to why two-thirds of its revenue is from its community, not ads.
