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2023-04-21 13:07:46

nick on Nostr: #onlyzaps V4v vs ad revenue is an interesting thing to think about. I like the v4v ...

#onlyzaps

V4v vs ad revenue is an interesting thing to think about. I like the v4v idea but I can’t help but notice it can make things as weird for creators as taking on sponsors.

In the streaming world, getting a contract, or essentially getting a much larger cut of ad revenue in advance for driving a large part of that revenue for the platform is king. Top streamers also can take on sponsors directly for typically very high value. A contract is typically on the order of $millions and sponsor revenue if done right can be similar.

What’s interesting is that most creators on streaming platforms are v4v supported until they make it to the tippy top. Only maybe the top 50-100 get such deals.

Top streamers like Ludwig have come out and said that they feel weird taking money from people. At the top of his twitch career pre subathon he was averaging ~20k subscribers a month. Assuming $5 / subscription and a 70% cut (note both of these numbers have changed, sub cost is up and top creator cut is down to 50%) he was grossing $840k on v4v from his viewership alone.

Before getting a contract or nice sponsor deals these creators work for years growing their viewership. V4v in streamer form means you can literally watch this 6+ hour a day grind. The fact that Ludwig favors monetizing off his viewers via ad revenue vs direct payment sort of says something.

Maybe it’s the fact that each sub is $5+ / month. It seems like at some point he felt guilty for how much viewers would give him especially at his peak, likely thinking of other up and coming creators that would stand to gain much more from each sub.
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