TNL Take: In June of 2016, Twitch introduced bits and cheering and provided another means of monetization for streamers outside of subscriptions. In the simplest terms, viewers purchase bits (the lowest price is $1.40 for 100 bits) and then give them to streamers in the form of cheering.
I thought the feature was amazing however it lacked 1 key element: Brands. My idea was this:
- Custom Bits for Brands
- Let Streamers/Brands give them away to their audience for Free
- Audience donates the Brand Bits in the exact same manner and the streamer gets paid on the same revenue share of $0.01 cent per Bit — but charge a 0% Fee — as Twitch will already monetize on the Ad side
While that wasn't implemented, you can watch a Video Ad to earn bits instead of paying - more on that later.
Here's the interesting part: the revenue generated won't be shared with the teams but goes directly to Twitch and Overwatch League.
How did Week 1 fare?
Over 21M+ Cheers were contributed by the community which also has an overall goal total to unlock more goodies for Overwatch fans. With a few assumptions, here's how much was generated:
- At the cheapest conversation rate of 100 bits for $1.40, the total haul would be ~$300,000
- Lower the weekly run rate to $250,000 to be conservative
- $1M potential revenue each month
While that maybe a drop in the bucket; all the drops will be necessary to recoup the estimated $90M that Twitch paid for media rights.
I still believe that Brands can be integrated into this ecosystem outside of Watch-to-Earn videos and hopefully will be coming soon.
Further, Twitch continues to evolve from merely lean-back, passive viewing to more engaging and community driven features.