During the COVID-19 pandemic and mandatory quarantines, Twitch saw unprecedented success, with so many viewers, subscriptions, and advertising contracts, that many streamers gained fame and money galore. But with the return to normality, everything began to decline to the point that now, many content creators have reported a drastic decrease in their advertising income. A phenomenon that has generated concern and uncertainty in the Twitch community.
According to several reports, some streamers have seen their advertising revenue drop by up to 95%. This unexpected decline has impacted content creators of all sizes, from the smallest to the largest. For example, Lacy, a popular streamer, has shared his frustration on social media, explaining that their daily advertising revenue has decreased from $10,000 to just $2,000.
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A daily profit that, although any office worker or other worker would like to spend in their working life, since it is a figure that is still considerable, represents a significant reduction for those who depend on advertising as their main source of income. And especially for streamers who have always considered themselves popular and with high incomes, who now see how these are going downhill with each passing day.
This sudden change has left many streamers worried about their financial future as while subscriptions, donations and other monetization methods remain important, advertising has been a key source of income for many. So much so, that some streamers, like TheStockGuy, who has almost 300 thousand followers on Twitchhave decided to disable ads on their streams due to low profitability.
Something that could ultimately work against you, as it may have a negative impact on your visibility and reach, since ads can help attract new viewers.
In closing, Twitch has yet to provide an official explanation for this decline in advertising revenue, but some experts speculate that it could be related to changes in advertising algorithms, a decrease in advertising demand, or even a deliberate strategy by the platform to reduce dependence on advertising by streamers.
Player spends more than $20,000 on card packs per month in one game and makes a profit of $1.5 million per year
Despite this news, there are creators like Simon “GamerBrother” Schildgen, who is one of the most internationally recognized EA FC streamers, (ex FIFA), who has surprised by publicly revealing his income and expenses. German content creator who shared a detailed breakdown of his finances, revealing that despite investing more than $20,000 a month in Ultimate Team packs, he manages to generate annual income that exceeds $1.5 million.
According to what he says in a recent video, his business mechanics are simple but effective, ensuring that he invests large sums of money in Ultimate Team packs, an EA FC game mode, in which players obtain footballer cards at random. . These “pack openings” are highly attractive to their audience, who enjoys watching the streamer open packs in search of the most valuable cards. In this case, he says he spends more than $20,000 a month on PSN cards to buy FC Points on FC 24 and then use them to buy the packs and open them on his live broadcasts.
Merchandise sales or sponsorships, rather than relying solely on in-game purchases. This way, the community can thrive without favoring those with deeper pockets.
Twitch Editors: Thank you for joining us today. Can you tell us about the decline in advertising revenue for Twitch streamers and your thoughts on its impact on the community?
Guest 1: Sure, I’m a small-time Twitch streamer with about 5,0000 followers and I’ve noticed a significant decrease in my advertising revenue since the start of the year. It’s really concerning because advertising has always been my main source of income. I’ve seen my earnings drop by around 60%, which is still significant, but for larger streamers, this could be devastating. I think the pandemic helped boost Twitch’s popularity, but now that people are returning to their normal lives, they’re not spending as much time on the platform. Advertisers might be focusing their efforts on other platforms or spending money elsewhere.
Guest 2: Absolutely. As a moderator for a popular Twitch streamer with over 100,0000 followers, I’ve seen how much this decline is affecting our community. It’s not just about the money, it’s about the trust that streamers built with their viewers during the pandemic. Now, many feel like they’re being let down by Twitch and the advertisers who once heavily supported them. We’ve all heard rumors about algorithm changes or a decrease in advertising demand, but no one knows for sure why this is happening. It’s important for Twitch to be transparent about these changes and work with their content creators to find a solution.
Twitch Editors: Moving on to another topic, we recently came across a story about a FIFA streamer who spent over $20,0000 a month on packs but made a profit of $1.5 million a year. What are your thoughts on this business model and its sustainability?
Guest 1: I think it’s interesting, but it also shows how gamers are willing to invest large amounts of money in games like FIFA Ultimate Team. However, I worry that this could create an unfair playing field where smaller streamers can’t compete with those who have more financial resources. It would be great if there were more opportunities for streamers to earn money through other methods like
