The days of multimillion-dollar streaming deals on Twitch, YouTube could be numbered

It appears the era of massive exclusivity deals on streaming platforms is nearing its end. According to Bloomberg, Twitch CEO Dan Clancy argued there’s been an ongoing “bidding war” between Twitch and YouTube for top-ranking talent and that it’s not a “sustainable business.” The two platforms have previously reached deals of enormous worth with creators to attract more viewers.

Bloomberg also reported that YouTube is backing out of multi-million dollar deals and shortening existing contracts. At the time of writing, there has been no official statement by YouTube on the matter.

Last year, Twitch removed its partner exclusivity clause, allowing streamers to stream on platforms not named YouTube and Facebook. The streaming giant announced just days ago at TwitchCon, though, that there are now no restrictions as to which platforms streamers can simulcast on.

Both platforms have previously tried to outmatch the other’s deals in pursuit of talented creators with massive viewership. They didn’t limit themselves to individual streamers; Twitch and YouTube actively invested in acquiring exclusive streaming deals for specific live events. In 2019, Twitch snagged the rights to stream 2020 NBA events. Esports events like the Overwatch League also had exclusivity on Twitch before jumping to YouTube with the Call of Duty League.

YouTube, in particular, wanted to establish its streaming platform as a strong opponent to Twitch. In the last few years, YouTube has signed dozens of popular creators, including Ludwig and TimTheTatman.

Though YouTube and Twitch may be in the spotlight right now, they aren’t the only ones guilty of participating in the so-called “bidding war.” Microsoft, more or less, began the trend by signing Ninja and Shroud to its now-defunct Mixer platform. And Kick recently re-ignited the flames by investing massively to bring about Twitch’s best like xQc, Amouranth, Hikaru Nakamura, and so on.

The fact that the two biggest content and streaming platforms are pulling out of the bidding wars may herald the end of the whole exclusivity trend. Kick doesn’t seem to be relenting in spending big to entice streamers to broadcast on its site, but chances are it too will eventually back out or perhaps even seize the opportunity to expand into Twitch and YouTube territory.

Whatever the case, we’re in for uncertain times and witnessing perhaps the biggest shift in the livestreaming world.