Twitch can avoid a tough 2020 by focusing on how it handles creator contracts - Business Insider

Thanks to their ability to lure streaming stars away from Twitch, emerging video game live-streaming platforms saw tremendous year-over-year growth in 2019.

While Facebook Gaming's and Mixer's trajectories are impressive, it's important to note that they are growing from a much smaller base than incumbents like Twitch and YouTube Gaming, which make up 94% of the market combined. In 2019, the platform saw viewership grow 219% YoY, tripling its market share from 1% in 2018 to 3% in 2019. In 2019, Microsoft's platform saw viewership grow 149% YoY, also tripling its market share from 1% in 2018 to 3% in 2019.

Twitch will have to make adjustments across 2020 in order to stave off the threat posed by its rapidly expanding competitors — and its focus should be on how it handles creator contracts. The gaming giant will need to be more flexible in its approach to gamer contracts, as its rigidity was a main source of complaint among gamers who left the platform.

For instance, Ninja, Twitch's highest-profile departure, said that an inability to make non-gaming content pushed him away from the platform. And Shroud, previously on Twitch, said he wanted a more intimate way to connect with his fans. On the other hand, the smaller players are ensuring allure through offering steady income in the form of exclusivity payouts, and interoperability across some of the world's most popular social networks, along with interconnected gaming systems.

While Twitch remains dominant, it also remains dependent on its gaming stars to produce content that will not only drive viewership but also help it foster social ties across the gaming community. To that end, losing megastars is doubly painful for Twitch, as it loses both viewership hours along with members of the gaming community who might instead spend more time on the platform their favorite gamer now calls home.

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