Twitch plans to update its creator monetization structure

This week in social media news, Twitch plans to change how it pays top streamers, Pinterest adds 2 million users in Q1 2022, and YouTube Shorts hits 30 billion daily views.


Twitch evaluates changes to its creator monetization program

According to people familiar with the planning, Twitch plans to update how it pays top streamers and offer incentives for streamers to run more ads, reports Bloomberg.

Why is this important: Changes to the platform owned by Amazon.com, Inc. may alienate creators and viewers as it will result in a reduction in their share of subscription fees for its most popular streamers.

In recent years, Twitch has provided an arena primarily for gamers to showcase their talents to the world, creating a new cohort of internet celebrities. Amazon has repeatedly expressed its desire to further monetize the platform and released a series of new profit-driven programs that some employees say have harmed its users and caused it to lose touch with the needs of its business. community.

The details: Twitch is representativeorderly consider implementing further changes to its monetization structure that would incentivize streamers to serve more ads and reduce the proportion of subscription fees offered to the platform’s top creators in its Affiliate Program from 70% to 50 %.

Two of the anonymous people who claim to have inside information Bloomberg Another option for streamer revenue cuts on channel subscriptions is to create multiple tiers and set criteria to qualify for each. Twitch can then offer to release partners from exclusivity restrictions, meaning streamers would be free to stream on Facebook and YouTube.

Some of the changes could go into effect in the summer of 2022. A representative for Twitch declined to comment.


Pinterest adds 2 million users in the first quarter of 2022

According to Pinterest’s latest performance updateits revenue is up year-over-year and down quarter-over-quarter, and it saw 2 million additional monthly assets log on in Q1 2022.

why is it important: At the start of the pandemic, when people were stuck at home and e-commerce exploded, Pinterest reached 478 million users. That number has since dwindled – it now reports having 433 million users.

Pinterest’s goal of being a key hub for shopping will require it to retain these users and serve them ads in order to satisfy its brand partners. Pinterest’s slowing growth, even as it expands into new markets, isn’t a good sign, although it remains to be seen how big it will be and how it will react to Google’s upcoming changes.

The details: Pinterest showed better year-over-year performance, although it declined on a quarterly basis, explaining that this is the result of declining active users despite its success in better monetizing the audience it has. Additionally, the number of Pinners interacting with retail surfaces continued to increase year over year.

In its performance update, Pinterest said:

“In the first quarter of 2022, we continued to experience year-over-year declines in engagement primarily due to pandemic-influenced growth in the prior year quarter as well as lower search traffic (largely due to Google’s algorithm change in November 2021).Time spent on competitive video-centric consumer platforms remains a headwind, especially in our more mature markets. Declines were most pronounced for our desktop web and mobile web users, with mobile app users showing greater resilience.The drop in global MAUs from February 1 to March 31 was primarily due to the recent invasion of the Ukraine by Russia, and was particularly pronounced in Europe.


YouTube hits 30 billion daily views as short film ads start testing

In his last income reportGoogle has confirmed that it has started running ads on its TikTok competitor, YouTube Shorts, as it averages more than 30 billion daily views.

why is it important: In February 2022, YouTube Shorts reportedly reached 5 trillion all-time views. The news that it is currently at 30 billion Daily showcases the growing popularity of short form content. Running ads between shorts will give YouTube another way to monetize since the more people watch more shorts overall, the less will watch other monetizable videos.

YouTube is TikTok’s most formidable competitor in the short video space. If YouTube makes the advertising offering permanent, its competition with TikTok will intensify as marketers have more options to advertise on Shorts and creators can earn more revenue as a result.

The details: YouTube is testing a move that embeds ads between YouTube Shorts clips, which now garner more than 30 billion daily views. YouTube will need to develop ads as a new revenue stream for Shorts content to get more Shorts creators paid and keep them happy and on the platform.

Google notes that more than 40% of creators who received payment from the Shorts Fund last year were not part of the YouTube Partner Program, which pays out billions to creators each year.


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