How Does the Future of the Streamer-Developer Relationship Look?

In our sprint meeting this past week, the question of paying streamers to play our game on Twitch and YouTube came up. It led to a longer discussion and brought up some important questions that I’d like to bring up here, and without trying to reach a conclusion, make people aware of the things we have to consider for the future.

The conversation centered around the idea that we want some streamers to play our new update to our game Ultimate Chicken Horse a few days before the release, so that we can build some hype around the launch of the new content. How should we approach these streamers? Do we pay them directly? Do we go through something like the Twitch Bounty? Do we simply offer them the exclusive early content and hope they play it without compensation? There isn’t necessarily a clear answer for this question, so I’ll try to formulate some thoughts here.

The first thing to look at is the relationship between all of the parties. The ones involved here are:

  • game developers
  • streamers
  • Twitch, YouTube, etc. (we’ll call them platforms)
  • companies that pay for ads on those platforms (advertisers)
  • viewers of content (viewers)
  • purchasers of ad products (ad consumers)
  • people who buy and play the game (gamers)

So here’s what I think the current situation looks like, and the green arrow with the ‘?‘ is what my team discussed in our meeting.

If you look at the relationship between any two groups mentioned here, it should make sense; for example, platforms receive money from advertisers, and advertisers get visibility in exchange. Advertisers also pay streamers directly and get visibility directly through them. The cash comes back to them from viewers of the content which become ad consumers when they buy the products being advertised to them.

The relationship between the streamer and the developer is the more complicated one here. The developer creates games that the streamer can use to create content for their viewers, and content for the platforms to show to their viewers. In return, the game developers get visibility from the streamers (because of their viewers). The question we were discussing seems to be whether or not the creation of the game is enough to justify the visibility being given to the developer, or if there should be money involved that comes from the developer and not only from the advertisers (either directly or through the platform).

So if we look only at the money flow, it gets injected into the system by people who are engaging with the system, presumably funded by their jobs. The cash comes to the developers when the viewers are convinced to buy the game and become gamers. The cash goes to the advertisers when people become ad consumers. The cycle can continue because the developers, streamers, platforms, and advertisers are making money and the gamers and viewers are happily spending it.

I won’t claim to know what is best for this system or how we should go about ensuring that everyone is happy and well-paid. I’m glad the conversation came up in our meeting because I think it’s useful to write this kind of thing out, and it brings up some interesting questions:

  • Should developers be paying streamers directly for the exposure they give to the game?
  • What kind of precedent do we set for this interaction, in either case (developers paying streamers or not paying them)?
  • Who “owes” who more, between devs and streamers? That is, a huge influencer playing a small game is much more advantageous for the dev than the streamer, but a huge game being created and given for free to a tiny streamer is more advantageous to the streamer. Where’s the tipping point? Does it matter?
  • If developers are paying streamers, how do we decide the basis for the payment? Time? Viewers? Engagement? Actual game purchases?
  • How do we avoid viewers being turned off by constantly seeing what are considered “ads” (paid streams) as opposed to content that was chosen without bias by the streamer?
  • How do we open the communication between developers and streamers without going through platforms to discuss these things?
  • What do we think is fair to all parties (including advertisers and platforms)?
  • How much should the advertiser money (ad revenue) be going to the streamer as opposed to the platform?

Another thing that came up, for better or for worse, was the idea that indie game studios sometimes ride on the big marketing budgets of the AAA companies in terms of streamers getting compensated. If a streamer makes $30k for playing a new Ubisoft game, they won’t bother asking a small indie for $200 for the same amount of time in their game (for many reasons). If the decision is that developers should pay streamers for the visibility they provide, is it fair to ride on the back of these huge studios?

I realize that this post is asking a lot more questions than it’s answering, but that’s kind of the point. We don’t know what the future of this relationship will look like just yet, but it’s going to be us (developers) alongside streamers who will need to figure it out. We all want what’s best for all parties, and we want to be fair to all parties above all else.

What do you think about this?

6 thoughts on “How Does the Future of the Streamer-Developer Relationship Look?

  1. Hey Richard! A much needed exercise given the challenges around understanding media consumption, promotion, reciprocation and compensation. I think this misses what has become the largest slice of my budget next to standard advertising: influencer networking. Advertisers send a lot of money directly to streamers, for example. Also viewers arguably support these influential streamers directly with money, especially factoring in patreon and other harder to track channels. But I like the way you are thinkninh about the relationships: it is definitely a fluid ecosystem and not a hierarchy, imo.

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      1. I would love to see your vision of the rest of this “ecosystem” —- this is a highly strategic way to look at relationships in the industry, I really appreciate it 💪

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  2. Just curious, is that $30K figure an exaggeration or are publishers really paying that much? As a game consumer I’m a little shocked. I knew some streams were sponsored but I was thinking it was for much lower figures. Now I’m thinking there needs to be more transparency around this since apparently game journalism is dying in favor of “influencers.”

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    1. Oh it’s definitely not an exaggeration. For our little indie studio (6 people), we were quoted $40k USD for a 10 minute video… and this was from a streamer that wasn’t even the biggest. They had around 8M subscribers I believe, which is huge, but it’s no Markiplier or Pewdiepie. Imagine what companies like Ubisoft are paying to streamers, I have no idea but you can be sure it’s more than $40k USD.

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      1. Totally agree; my last influencer pitch for a brand was $60k!!! Insane but there is sales data to justify these numbers.
        Also worth saying that streamers, even big ones, still promote things for free all the time. So I would encourage indies to reach out if they have something unique to share, even if they don’t have a big budget for promo.

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