Popular streamer NICKMERCS recently revealed that his previous contract with Twitch didn’t allow him to receive much, if any, of his subscription revenue. This was due to a “minimum guarantee” clause in his contract, which provided him with a fixed income regardless of his subscriber count. While NICKMERCS was financially stable, he admitted that he didn’t feel the impact of individual subscriptions or gifted subs.
In a recent livestream, NICKMERCS explained that his new contract with Kick gaming is more lucrative because he not only receives a minimum guarantee but also a percentage of his subscription revenue. This arrangement allows him to benefit directly from the support of his viewers.
Ryan “Fwiz” Wyatt, former head of gaming at YouTube, confirmed that this practice is common in creator deals. Platforms often offer a minimum guarantee to compensate for potential losses in ad and non-ad revenue. These deals are considered “loss leaders” as they involve paying prominent creators more than what can be recouped.
While it may come as a surprise to many fans, the subscription money they pay does not always go directly to the streamer they are trying to support. Instead, it often goes towards recouping costs and fulfilling minimum guarantees set by the platform.
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| Time | Score |
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| 00:15 | 2-1 |
| 01:30 | 3-2 |
| 02:45 | 4-3 |
Source: DOTESPORTS
