By: Cade Robertson | @Cadesgap
Twitch, the popular video-streaming site, recently introduced “Bits.” Bits is Twitch’s new way to tip teenagers who specialize in air-conditioned basements and MarioKart. When you buy a Bit, you get a certain amount of “Cheers”. A “Cheer” is the dancing, animated icon that can take the form of multiple shapes and colors.
Even though big broadcasters are financed well, Twitch wants to help the smaller broadcasters take their gaming skills to the bank. Twitch has formalized the tipping economy by naming its new program, “Cheering.”
Given Twitch isn’t a formalized platform for business, here are some FAQ about Twitch’s “Cheers”.
Q: What are the prices for bits and what do they look like?
A: The price for Bits starts at $1.40 for 100 Bits and escalates up to $140 for 10,000 Bits. The user has the option to use all their Cheers at once, or they can get the most out of your digital cash by Cheering one Bit at a time.
Here are the Cheering emotes they can use:
Courtesy of Twitch
Q: How many people use Twitch? Where is the “Cheering” program in terms of revenue?
A: As of 2016, there are 2.1 million broadcasters and 100+ million Twitch users. If every broadcaster was to in theory, receive a mere $1.40 for a single Cheer, Twitch and their broadcasters would receive more than $210 million dollars in revenue! As of July 2016, only the 30 biggest broadcasters are partnered with Twitch to participate in the Cheering program, but as more broadcasters adopt the program, the program will continue to expand.
Q: How is the revenue split between Twitch and my business?
A: In a recent FAQ, Twitchs’ Robert Scarnewman wrote how revenue would be split between Twitch and its partners. He clarified that:
“Twitch provides participating partners a share of the revenue Twitch receives from Bits equal to 1 cent per Bit used to Cheer for them.”
Your business will receive $1.00 for every $1.40 Bit or roughly 70% of the revenue from Cheering.
Q: What will keep our audience coming back to our streams?
A: Broadcasters and Twitch aren’t the only ones getting a warm, tingly feeling from Cheers. Users who participate in the Cheers program might be virtually thanked on the stream itself via TwitchAlerts. TwitchAlerts is a third-party service that generates on-screen images (on the stream) that thanks new subscribers -- and now people who Cheer -- in front of possibly millions of people! As of now, $123,704,522 has been raised by the one million+ broadcasters using the service.
Q: Does Twitch give my business an advantage over others in my industry?
A: Twitch is predominantly a video game site, but the video-streaming service can provide companies with the opportunity to showcase and live stream their company updates, business plans, and new products live! An example of a company utilizing the power of Twitch’s live-streaming is Bungie, the popular, video game developer. Bungie has previously revealed ‘The Taken King’ game expansion along with other new products e.g. gifts, exclusives, and game expansions.
Releasing new details over multiple streams keeps your audience coming back, which in turn, increases subscription revenue and increases Cheers.
Courtesy of @RectifyGaming
Twitch has voiced that the company will spread this program to all users in time, and that the company's main focus is to benefit the entire Twitch community with the introduction of Cheers.
Are you curious about adopting Twitch? Give us a call at 469.248.0616 or tweet us @Socialmediadel to learn more!