Other limitations, such as the lack of promotional tools like VOD (video on demand/replay) and clips, are also factors that DJs will need to consider. Many performers already don’t use VOD services to avoid potential strikes, but for some it’s another way to engage with fans who can’t watch live. Twitch has confirmed that VOD is not subject to existing licensing agreements, but claims that the company is considering other promotional tools. DJs who also host non-music streams have been instructed to run two accounts, with only one registered with the program.
Despite these drawbacks, all of the DJs WIRED spoke to agreed that operating in a grey area of copyright isn’t good for anyone. Most also understood that Twitch, which is owned by Amazon, has obligations to rights holders. Clancy alluded to as much in the blog post announcing the program. “It’s important for DJs to understand that Twitch’s status quo is not sustainable,” he wrote. “A solution needs to be found for a viable future for our community.”
Solutions seem to be what Twitch needs most these days. As we all know, the company isn’t profitable. User growth has stagnated and revenue growth appears to be slowing, according to documents recently reviewed by The Wall Street Journal. The company announced in January that it would lay off 500 employees (about a third of its workforce), following cuts of more than 400 jobs last March.
Twitch says there are “tens of thousands” of DJs on the platform right now, meaning that DJs currently only make up about 1% of active streamers, so attracting more DJs to the platform is unlikely to be a panacea. But it’s an area that’s seen massive growth thanks to the wave of performers that have joined during the pandemic, and one the company clearly sees as worth investing in.
In terms of competition, Twitch doesn’t face much. Harris said he tried Mixcloud but found the streams to have a lot of “bot” activity and the revenue share to be unfavorable. TikTok and most other mainstream social media platforms force at least some form of removal or demonetization for playing unlicensed music. Twitch’s direct competitor, Kick, offers a much more favorable revenue share (95 percent to the performer), but it raises the question of whether that ratio is sustainable if Twitch can’t make a profit off a bigger cut.
Meanwhile, while DJs seem to welcome Twitch’s efforts, most of their concerns are directly proportional to the amount of investment they’ve made in the platform to date.
“Honestly, I don’t have much to lose, so I’m just waiting to see what happens,” Harris said.
“Twitch is my main source of income,” says Colaway, a DJ who streams about 35 hours a week. “The supply of DJs on Twitch is so high that it’s very unlikely for a new DJ to stream full-time.” She adds that she believes the program is still a step in the right direction and plans to participate.
As for East, he said, “I’m going to jump in as soon as the games start, get in the game and get a feel for what’s going on.”
“If I’m the guinea pig at that point, I’m the guinea pig,” East added, “and I want to push through the challenges and keep moving forward. My journey on Twitch has been amazing, and it’s really the community that solidifies that.”
Ultimately, if DJs can stomach the inconvenience that legalization entails, Twitch has the best chance of succeeding at this, and with a struggling music industry hurting the pockets of those promoting artists, Twitch seems as well positioned as other platforms to offer a solution.
