Devin Nash, the former CEO of Counter Logic Gaming (CLG), has penned a detailed post regarding the current standpoint of Twitch sponsors. According to his write-up, some sponsors have deliberately dissociated themselves from the platform due to various controversies, particularly from the political side of things. aaaa
"Twitch is in an advertising nightmare situation. Advertisers are leaving the website and not returning. Twitch has controversy after controversy and can’t get its enforcement straight. I don’t know if the website will survive long term without serious changes."
According to his post, the solution would be to simply suspend/ban any extremist political takes by any streamer. He said:
"The solution to it is simple, brutal, and efficient. Ban all extremist/controversial/political content or none of it. But simple is not often easy."
"Run cheaper ads to appease Amazon" - Devin Nash explains the problem with Twitch
Devin Nash, YouTuber and CMO of Novo Studios, recently posted a detailed tweet explaining how Twitch is currently facing a decline in sponsorships. To illustrate this issue, he highlighted how YouTube had faced a similar problem.
"Major advertisers discovered their ads were appearing alongside controversial or extremist content (sound familiar?) A ton of key advertisers pulled ads from the platform, including AT&T, Pepsi, and others."
He further noted that Twitch invested hundreds of millions into gaming studios (for rights to stream) and streamers, but these efforts ultimately proved unfruitful:
"They paid $90,000,000 to broadcast the Overwatch league. They signed multi-year partnerships with Riot Games to broadcast League of Legends. They paid streamers like Ninja and Shroud, also on contracts worth millions of dollars."
Devin Nash claims that due to these financial challenges, Twitch has had to rely on cheaper ads, leading to a noticeable decline in the platform's overall quality.
"Their ad inventory is getting cheaper because the quality of their website is declining, forcing them to run cheaper ads to appease Amazon"
Devin Nash added that Twitch CEO Dan Clancy faces a difficult choice: either ban all extremist streamers or allow them to remain, especially with competing platforms like Kick already capturing around 10% of Twitch’s audience.
The recent backlash has surrounded creators like Hasan "HasanAbi" and Morgan "Frogan" (among others) for their comments. HasanAbi was accused of antisemitic remarks, while Frogan faced criticism for saying she wished PTSD on U.S. soldiers.