Kick, the new Stake-backed streaming platform challenging Twitch’s dominance, has pledged to maintain their attractive 95/5 sub revenue split.
This decision has been articulated by Kick CEO Eddie Craven, despite some concerns about its long-term sustainability.
Rising to Challenge Twitch’s Supremacy
Over recent months, Kick has gained considerable attention in the streaming world as a fresh competitor to Twitch.
Its appeal to streamers, in part, rests on an impressive remuneration package – a noteworthy example being the $100m non-exclusive deal signed with xQc.
Twitch, on the other hand, offers streamers a 50/50 split on sub revenue, with some streamers receiving a 70/30 deal. In stark contrast, Kick proposes a tempting 95/5 split.
This offer applies universally, irrespective of a streamer’s view count or streaming hours.
Despite some concerns about the sustainability of this model, Craven has declared that they are not contemplating any changes.
The Future of Sub Splits on Kick
During a recent interview with Jake Lucky, Craven clarified Kick’s perspective on subscriptions. He explained that the platform views subscriptions akin to donations and is averse to interfering with this concept.
“The sub split is something that is considered to almost be donations, right.
You receive a donation from your community, you receive subs from your community for making great content and the whole idea of dipping into that sub split, our idea behind it is that it’s unfair,” Craven stated.
The CEO emphasized that a platform, which simply curates other people’s content, does not merit the right to claim a share of people’s revenue from donations.
He added that looking ahead, the platform anticipates advertisements as the key to evolving it into an “extremely sustainable business.”
The topic of Kick’s massive sub split and its sustainability was also broached with Twitch CEO Dan Clancy.
While Clancy refrained from commenting on the specific strategies of other platforms, he did express excitement about the lucrative deal Kick signed with xQc.
What Lies Ahead in the Streaming Industry?
With Kick’s unyielding stance on the 95/5 sub split, it’s uncertain whether Twitch might be forced to reassess its revenue strategy, or if it will explore alternative income opportunities for its streamers.
Kick’s innovative approach has certainly stirred the pot in the streaming industry.
While it’s too early to predict the long-term effects, it’s clear that the platform’s aggressive strategy is reshaping traditional business models in the sector.
Only time will tell whether Kick’s sub-splitting approach will become a new industry standard or a short-lived experiment.