In a significant blow to the Amazon-owned site and indicative of its strained relationship with content creators, one of Twitch’s most popular streamers announced on Friday that he would be joining a rival streaming platform, Kick.
Félix Lengyel, widely known online as xQc, has secured a lucrative two-year contract with Kick worth approximately $70 million, with the potential for incentives to raise the total to around $100 million, according to his agent, Ryan Morrison. The magnitude of Mr. Lengyel’s deal, comparable to the two-year contract extension signed by LeBron James of the Los Angeles Lakers last year, could have a profound impact on the economics of the online entertainment realm.
“This is one of the highest deals in entertainment, period,” stated Mr. Morrison. “It surpasses what most professional athletes and megastars receive.”
At 27 years old, Mr. Lengyel engages with his fans through chat, hosts reality shows, and livestreams himself playing video games. With nearly 12 million followers and the ability to attract tens of thousands of viewers simultaneously, he has become a prominent figure in the livestreaming world. By certain metrics, he is considered the most popular streamer on Twitch.
“I’m thrilled to have the opportunity to explore new avenues and venture into uncharted territory with Kick,” expressed Mr. Lengyel in a statement. “Over the coming years, I am excited to maximize this opportunity and develop fresh, creative ideas.”
Prominent livestream personalities can earn millions of dollars and cultivate communities of loyal viewers by sharing their content. However, in recent years, several streamers have departed Twitch enticed by lucrative deals from other platforms such as YouTube. Moreover, some streamers have voiced grievances regarding Twitch’s decreasing responsiveness to its online community and its greater focus on profitability rather than streamer satisfaction.
These concerns reached a peak last autumn when Twitch announced a larger share of revenue from fan subscriptions for top streamers. However, Twitch revised this policy recently and also rolled back a recent change restricting the types of advertisements streamers could feature during their broadcasts.
Kick, a streaming platform supported by online gaming and gambling sites in Australia, including Easygo Gaming and Stake.com, an online casino, launched this year and emphasizes its streamer-friendly policies. It only takes a 5% cut from streamers’ subscription earnings, a stark contrast to Twitch’s 50% share. As a start-up, Kick is prepared to operate at a loss, according to Ed Craven, the company’s CEO.
While Mr. Lengyel will primarily produce content for Kick, he will not be exclusively bound to the platform and may occasionally appear on YouTube or TikTok, as stated by Mr. Craven. Mr. Lengyel still intends to make appearances on Twitch, albeit less frequently than before his contract with Kick.
Although Kick currently averages 110,000 livestreams per day, it is dwarfed by Twitch’s seven million monthly streamers and 31 million daily viewers. Nevertheless, Kick has experienced rapid growth and has attracted other notable stars.
“Our focus is on creating a community centered around the creators themselves, rather than solely on a corporate structure,” said Mr. Craven. “We believe it is not our right to dip into your pockets and claim a portion of that revenue.”
The move of a high-profile streamer like xQc to Kick marks a significant shift in the streaming landscape and highlights the growing competition and challenges Twitch faces in retaining its content creators