In a major blow to Twitch, one of its most popular streamers, Félix Lengyel (known as xQc), announced on Friday that he would be joining rival streaming platform Kick. This move highlights the increasingly strained relationship between Twitch and content creators, as well as the impact it may have on the online entertainment world.
According to his agent, Ryan Morrison, Lengyel has signed a two-year contract with Kick worth approximately $70 million, with potential incentives that could bring the total to around $100 million. This deal, comparable in size to the two-year contract extension signed by LeBron James of the Los Angeles Lakers, has the potential to disrupt the economics of the online entertainment industry.
Morrison stated, “This is one of the highest deals in entertainment, period. It exceeds the earnings of most professional athletes and megastars.”
Lengyel, a 27-year-old Canadian, engages with fans, hosts reality shows, and livestreams his video game sessions. With nearly 12 million followers and the ability to attract tens of thousands of viewers simultaneously, he is considered one of the most popular streamers on Twitch.
Expressing his excitement, Lengyel said, “Kick is allowing me to explore new opportunities and ideas that were previously unavailable to me. I am thrilled to seize this opportunity and unleash my creativity over the next few years.”
While successful livestream personalities can earn millions of dollars and gather loyal fan bases on platforms like Twitch, many have departed in recent years due to enticing offers from other platforms like YouTube. Some streamers have also voiced their grievances regarding Twitch’s decreasing responsiveness to its online community and its focus on profitability rather than streamer satisfaction.
Last fall, these concerns reached a boiling point when Twitch announced increased revenue cuts for top streamers from fan subscriptions. However, Twitch has since reversed this decision and eased restrictions on the types of advertisements that streamers can showcase during their broadcasts.
Kick, a streaming platform supported by Australian online gaming and gambling companies such as Easygo Gaming and Stake.com (an online casino), was launched this year with a focus on being streamer-friendly. It only takes a 5% cut from streamers’ earnings compared to Twitch’s 50%. As a startup, Kick is willing to incur losses, according to Ed Craven, the company’s CEO.
Although Lengyel will primarily produce content for Kick, he is not tied to an exclusive contract and may occasionally appear on YouTube or TikTok, as stated by Craven. Lengyel does plan to continue making appearances on Twitch but at a reduced frequency compared to before joining Kick.
Although Kick currently averages around 110,000 daily livestreams, it is still dwarfed by Twitch’s seven million monthly streamers and 31 million daily viewers. Nevertheless, Kick has experienced rapid growth and has managed to attract other prominent creators.
Craven emphasized that Kick’s core mission is centered around creators and building a community that revolves around them rather than a corporate structure. He stated, “We believe it’s not our place to dip into your earnings and take a share of it.”
Overall, Lengyel’s move to Kick showcases the evolving landscape of the livestreaming industry and the growing competition for top content creators. As platforms strive to meet the needs and expectations of creators while still maintaining profitability, the dynamics of the online entertainment world continue to shift.
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