Its 8 26 am for me right now. And I have an extremely busy few days coming up.
But there is something I felt I should address to the public so they know whats going on and I’ll do it as briefly as I possibly can.
If you recall correctly a while ago FXOpen e-Sports switched from twitch.tv to own3d.tv.
I never publically announced the reasoning why. There were a few reasons, but the main one being Twitch was so heavily saturated they were failing to get ad fills for their partners. Our fill rate dropped to around 15% and our eCPM (the actual cost per thousand) was as low as $1.85, which is text banner CPM and not enough to bother using their services anymore.
So we changed to own3d.tv after being told of the CPM rates and fill rates. We were pretty much guaranteed a 80% fill rate, and a guaranteed CPM rate of $3.50.
It was good for 2-3 months, and we enjoyed using them for that time. But as they have become more popular recently, in particular with people from Korea, their fill rates have dropped significantly (not quite as bad as Twitch was when we left but less than 50%) and now we are re-thinking our options once again.
I am not the type of person to cause a stir usually, but there aren’t many options out there at the moment that allow streamers to get HONEST revenue. First and foremost I have to say that any company who is over extending themselves like twitch.tv and own3d.tv have is unprofessional and short lived. You cannot keep doing this and survive because people will up and leave. And as you increase your ad capacity to help with the influx, the damage is usually done and you will end up not satisfying your advertisers needs.
Whilst some may look on the bright side “yay so many streamers who can make money” you must realise that this isn’t a sustainable method of business and it will come back to bite everyone in the ass.
Solution? Stop giving out so many partnerships to people who have never gotten you a single viewer before. Make people earn their partnership so that you can correctly gauge what type of numbers you need in order to fill the advertising being played. Youtube does this, and last I checked it was a very successful business.
FXOpen e-Sports will look into other methods of revenue for its FIS event due to these problems. But it might be time for the e-Sports revenue trending to change into a new model and away from pointless low cost ad fills. After all, the e-Sports market is worth more than mindless ad spamming :)
Happy new year everyone!!