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It initially piggybacked off of Twitter, but was quickly cut off, likely because Twitter has its own plans for a live streaming service built around a company it just acquired, Periscope.We’ve finally hit a tipping point where live streaming makes sense, both as a killer feature on a platform like Twitter, but also as a standalone business like You Now. "The reason is the rise of i OS and Android," says Emmett Shear, the CEO of Twitch.Of course, anyone getting premium goods outside the partner program gets no cut. He tunes in to the channel of a user named Flippin Ginja, a red-headed teen and amateur gymnast who is lounging on his porch swing."Guys, I’ve been drinking too much water," he tells his smartphone camera.The comments on popular videos fly by far too quickly for the broadcaster to follow.Often you see streamers squinting to make out a username, trying to reply in real time to the flood of compliments and questions.A 99 cent tip sometimes gets a broadcaster to smile, while more expensive offerings elicit a personal shoutout, or more intimate reaction.The company won’t share what the revenue split is between streamers and You Now, saying only that broadcasters in the partner program get "the lion’s share" of their tips.
More than 35,000 hours of live video are now streamed on the service each day, and more than a million dollars in tips flow through its platform each month.
"Smartphones provide all the critical pieces for these new services.
They take care of distribution through the app store, monetization through in-app purchases, incredible video quality through cameras and microphones, and connectivity everywhere with LTE internet." The growth and ubiquity of social networks is also "creating an amplifier effect for good consumer products." You Now is run by founder and CEO Adi Sideman, who knows very well the long history of failed experiments with live streaming.
His broadcasting schedule swelled from one or two hours a day to appearing live in four two-hour sessions. “I was using up around 70GB of data each month, and I’m with Verizon so you know that’s not cheap.” He was addicted to the interaction with the audience, but couldn’t afford to keep up with his costs.
So he sent a letter to You Now, which put him on its partner program, allowing him to earn money when his fans left digital tips and gifts. Cashier broadcast has several hundred people following live at any time.