The high-stakes world of streaming platforms has been set ablaze by the announcement of an unprecedented contract signing. The streaming juggernaut, Felix Lengyel, better known as xQc, has inked a deal with Kick, a budding streaming platform, that's poised to shatter previous records.
With its sheer size and potential impact, this contract signing is more than a personal triumph for Lengyel—it could signal a seismic shift in the industry.
A New Record-Breaking Contract
Kick has pledged a staggering $70 million to secure the services of Lengyel, a deal that would span two years.
The contract, containing specific clauses, could potentially propel his earnings to an astronomical sum of $100 million. In a surprising twist, Kick has chosen not to stake a claim on exclusivity. This means xQc can continue broadcasting his content across other platforms, interacting with his vast audience unhindered.
To put this deal into perspective, the previous high-profile agreement saw Microsoft shelling out between $20 and $30 million to have Tyler "Ninja" Blevins stream exclusively on their platform, Mixer. However, when Mixer folded, Ninja returned to Twitch, relinquishing his status as the most popular streamer.
As such, the deal between xQc and Kick stands in stark contrast to industry trends, resurrecting the trend of significant investments in streamers.
A Paradigm Shift in Streamers’ Earnings
The announcement arrives during a tumultuous period for streamers and the behemoth platform, Twitch.
Tensions have been escalating due to disputes over the distribution of earnings, currently split 50:50 between streamers and Twitch. Moreover, Twitch's recent decision to curb streamers' opportunities for additional income generated through streams has stirred up a storm of criticism and even threats of boycotts.
Kick's strategy, however, markedly deviates from this model. The platform, still in its infancy, provides a hefty 95% of earnings to streamers—a boon in the eyes of those feeling the pinch of Twitch's recent policies.
Despite operating at a loss, Kick's strategy could attract high-profile streamers, shifting the balance of power in the streaming world. The sheer magnitude of Lengyel's contract surpasses the earning potential of many professional athletes.
To grasp its significance, consider this: the streamer's contract is only marginally smaller than the sum reputedly paid by Inter Miami Soccer Club to acquire soccer legend Lionel Messi.