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Unanswered Questions Arise Regarding the Allocation of Twitch Sub Revenue After NICKMERCS Rant

NICKMERCS Reveals Twitch Contract Details and New Deal with Kick Gaming

Popular streamer NICKMERCS recently shed light on his previous contract with Twitch when discussing his new deal with Kick gaming on a livestream. According to NICKMERCS, his previous Twitch contracts included a “minimum guarantee” clause that resulted in him not receiving a significant portion of his subscription revenue. However, his new deal with Kick gaming provides him with both a “minimum guarantee” and a percentage of his subscription revenue.

The Impact of “Minimum Guarantee” Contracts

NICKMERCS explained that while he was financially secure under his Twitch contract, the stability of a fixed income from the platform meant that he didn’t directly benefit from individual subscriptions or large numbers of gifted subscriptions. He stated, “I got paid a fixed amount no matter what. So when someone comes into the stream, and they gift 100 [subs] … I appreciate that, that’s love, but that’s not mine.”

Understanding Creator Deals and “Minimum Guarantee”

In response to NICKMERCS’ comments, former head of gaming at YouTube, Ryan “Fwiz” Wyatt, clarified that these type of contracts were common in the industry. Platforms offer a “minimum guarantee” to prominent creators as a way to recoup ad and non-ad revenue, even if it exceeds what the creator would earn from subscriptions. These types of deals are often considered “loss leaders” as the platforms are willing to pay a premium for the influence and impact these creators have on the streaming marketplace.

Implications for Viewers and Fans

While it may come as a surprise to some viewers and fans, NICKMERCS’ revelation highlights the fact that subscription money might not directly go to the streamer they are trying to support. However, it’s important to recognize the intangible value that these creators bring to the platforms and the overall streaming community.