Twitch CEO Talks About Kick Potential Financial Impact on Them

In a recent interview, Twitch CEO Dan Clancy addresses the potential financial impact of the rival streaming platform, Kick, on Twitch. This article aims to delve into Clancy’s clarifications and shed light on the ongoing debate.

Kick Gains Popularity Among Content Creators

Kick, a gaming and live streaming platform has been gaining significant traction lately, attracting a growing number of content creators who are switching from Twitch. Prominent personalities such as ‘xQc’ and ‘Amouranth’ have already joined Kick, with many others following suit.

The Generous Revenue Split on Kick

A major factor driving content creators to Kick is the platform’s incredibly generous revenue split. Unlike Twitch, which takes a 50% cut, Kick offers streamers a remarkable 95% share of their earnings. This significant difference raises questions about Kick’s impact on Twitch’s revenue, particularly considering its relationship with Amazon’s services.

Addressing the Claims

So, in short, Kick is subsidizing Twitch by paying to use the Twitch video system via AWS. I mean, yes, I too think IVS is the best video system for this use case, but paying ~8-10x cost is not a sustainable growth plan.

— Cyrus Hall (@cyrusphall) April 11, 2023

To provide clarity on the matter, Twitch CEO Dan Clancy participated in an interview with Jake Lucky. During a live stream on Clancy’s Twitch account, Lucky directly asked about that. He ask about the financial benefits of Kick for Twitch, considering Amazon’s acquisition of Twitch in 2014.

This discussion was sparked by a former Amazon engineer’s claim. On April 11th, former Amazon engineer in his Twitter @cyrusphall claims that Kick was “subsidizing” Twitch. What he means by subsidizing is that Kick paying for their streaming service through Amazon.

Clancy’s Response

Twitch CEO claims the company makes no money from Kick using AWS pic.twitter.com/Q7rzMI2SUC

— Dexerto (@Dexerto) June 23, 2023

Contrary to the claims, CEO Dan Clancy refuted the notion that Kick financially benefits Twitch. When asked the question, Clancy confidently stated, “The simple answer is it doesn’t make Twitch money.”

He further clarified that AWS, the Amazon-owned web service, is not directly associated with Twitch but rather a service offered by Amazon. Clancy explained that Kick currently utilizes the Interactive Video Service (IVS), derived from Twitch, and this practice aligns with AWS’s approach across all business lines, promoting healthy competition.

Laying the Debate to Rest

With Clancy’s clarification, the debate surrounding Kick’s financial impact on Twitch can be put to rest, at least for now. Kick streamers can now have peace of mind, knowing that their revenue does not directly support any rival platforms.

Conclusion

Twitch CEO Dan Clancy’s interview provides valuable insights into the relationship between Kick, Twitch, and Amazon. His clarification dissipates the doubts surrounding Kick’s impact on Twitch’s revenue. As the streaming landscape continues to evolve, content creators have a wider array of platforms to choose from, each offering unique benefits and revenue models.