Twitch.com, a streaming platform for gamers, has recently announced the addition of 'cheering', a new form of tipping that allows paying viewers to send animated emotes to streamers of their choice.
This show of appreciation will come in several different forms, from a simple triangle that spins to a fully animated star, and will be accompanied by cheer badges, which mark a viewers support for a particular channel.
For example, if you've 'cheered' a certain amount of times, depending upon the level of support, you'll get a badge that reflects that level of contribution.
The cheers come in a number of pre-paid packages, starting at $1.40 for 100 bits (the lowest cheer costs only 1 bit, while the highest will be upwards of 10,000)
Looking a little more closely at Twitch's cheering solution, we're faced with two issues:
On the one hand, Twitch wants to capture revenue that currently gets transferred to streamers directly through paypal (or other various payment platforms). By keeping everything within Twitch's walls, they'll be able to take a slice of the donation pie.
On the other hand, even if Twitch does take a cut of the money spent on cheering, its still money that would have otherwise gone to Paypal for fees, and won't affect what ends up in the hands of the streamers themselves.
Ultimately we don't think this is necessarily a bad thing, even if its a pretty obvious revenue play by Twitch. Let us know your thoughts below!