Twitch and YouTube Backing Out of Bidding Wars for Top Talent
The era of massive exclusivity deals on streaming platforms is coming to a close. Twitch CEO Dan Clancy has stated that the ongoing “bidding war” between Twitch and YouTube for top-ranking talent is not a sustainable business. Both platforms have previously reached multi-million dollar deals with creators to attract more viewers.
According to Bloomberg, YouTube is now backing out of these high-value deals and shortening existing contracts. While there has been no official statement from YouTube on the matter, it seems that the platform is shifting its strategy.
Last year, Twitch removed its partner exclusivity clause, allowing streamers to broadcast on platforms other than YouTube and Facebook. Just recently, at TwitchCon, Twitch announced that there are now no restrictions on which platforms streamers can simulcast on.
Both Twitch and YouTube have actively pursued talented creators with massive viewership, not only signing individual streamers but also investing in exclusive streaming deals for live events. Twitch secured the rights to stream 2020 NBA events, while YouTube acquired the Call of Duty League after the Overwatch League moved from Twitch.
YouTube has been particularly keen on establishing itself as a strong competitor to Twitch. In recent years, the platform has signed numerous popular creators, including Ludwig and TimTheTatman.
However, this bidding war phenomenon is not limited to Twitch and YouTube. Microsoft started the trend by signing Ninja and Shroud to its now-defunct Mixer platform. More recently, Kick has invested heavily to bring top Twitch streamers like xQc, Amouranth, and Hikaru Nakamura to its site.
The fact that the two largest content and streaming platforms are stepping back from these bidding wars may signal the end of the exclusivity trend. While Kick continues to spend big to attract streamers, it is possible that it too will eventually back out or even expand into Twitch and YouTube territory.
We are entering uncertain times and witnessing a significant shift in the livestreaming world. The future of exclusivity deals remains uncertain, but it seems that the era of massive bidding wars may be coming to an end.
Source: DOTESPORTS
