Last Updated on October 24, 2024 by Steven W. Giovinco
Summary
This article is about the attempt to build the online reputation of a business and the self-inflicted unraveling reputation of another. I specifically focus on the recent events involving streamers, a $100M deal and the sites Twitch, Kick, and Reddit. An analysis of the hugely popular xQc’s and Amouranth’s move to Kick and Reddit’s API pricing controversy highlights the critical importance of transparency, community engagement, and strategic planning in online reputation management for businesses and individuals alike.
Introduction
I’ll address a seemingly obscure realm of the internet but one that holds significant lessons for businesses, brands, or C-Suite executives. You probably have no idea who xQc or Amouranth are, or are familiar with Twitch, Kick, or Reddit. No worries.
However, if these names sound vaguely familiar, it’s because they recently made front-page headlines in the New York Times. It involves a $100 million payment, akin to what LeBron James might receive, to a 27-year-old, which is attention-grabbing.
The story surrounding these events provides valuable lessons in business and reputation management. In summary, one platform paid streamers multi-million dollars to repair its reputation, while another, Reddit, damaged its credibility due to greed.
Below is some background on what this is all about. If you are familiar with what I mentioned, feel free to skip to the “100 Million Dollar Move” section.
Key References
Case Study 1: Twitch Streamers
First, let’s understand the sites and players.
Twitch is a platform for real-time live streaming. Think of it as a fusion between YouTube and a live broadcaster. Initially, the platform carved a niche for itself by focusing on gaming, where players share live footage of themselves playing video games (which personally, seems odd–but thousands watch them). It has since diversified into many other categories, some of which feature live journalists, comedy, etc. (even The Washington Post has a channel).
One key feature of Twitch is the ability for people to interact with the streamer live through chats. This makes it a very engaging platform, as viewers can ask questions, make comments, and receive immediate feedback.
Advertisers love Twitch as a marketing tool. Popular Twitch streamers monetize their channels through advertisements, subscriptions, and donations from viewers. Businesses can also sponsor streamers to promote their products or services to a targeted but coveted audience. Millions of dollars are made by both the brands and streamers.
What is Kick?
Kick is also a video live-streaming platform, but it was launched in 2022. It was designed to rival Twitch, which is owned by Amazon, by offering a more relaxed moderation policy (i.e., edgier, and perhaps less controlled) and giving a higher revenue share to streamers. It is owned by one of the largest online gambling entities, Stake, and as a result, many streamers who focused on controversial content, such as gambling, migrated to Kick. Kick also made headlines recently by signing deals with several high-profile streamers who previously had a strong presence on Twitch, including xQc and Amouranth.
Who Is xQc?
xQc, aka Félix Lengyel, is a Canadian internet personality and former Twitch streamer. He is considered an entertaining and often eccentric online persona by fans (I’ve never seen him). xQc initially gained fame as a professional gamer, representing Team Canada in the Overwatch World Cup–a big deal in the streaming realm. He transitioned to full-time video gaming and real-life (IRL) content.
Who is Amouranth?
Also a former Twitch streamer, Amouranth streams games and other content but is known for sitting in a hot tub (that’s right). She’s been banned from Twitch for controversial sharing but is immensely popular and has millions of followers.
The 100 Million Dollar Move
Now that we’re finished with the background, let’s get to the meat of the matter. Platforms and streamers are constantly evolving. xQc and Amouranth are prime examples of mega online influencers who have made huge paychecks through ad revenue and other sources.
With a massive following on Twitch, they recently made the move to Kick.
Overall Business Implications
These moves have implications beyond xQc, Amouranth, Twitch, Kick, or any specific platform.
Actually, it’s a reflection of the broader online landscape where businesses and brands often believe they can swiftly change the narrative surrounding a negative reputation. Kick, for instance, has faced criticism due to its association with gambling and controversial streamers such as Adin Ross, who was banned several times on other platforms. It seems that luring big-name streamers is an attempt to repair Kick’s reputation. This should serve as a cautionary tale for businesses and brands on the complexities of reputation management.
Motives Behind the Move
Both xQc’s and Amouranth’s decisions to transition to Kick could be attributed to a plethora of factors, but it probably comes down to money. They might want to pursue creative freedom or a change of scenery, but financial incentives seem central since Kick offered insanely lucrative contracts. However, such a move is not just a simple switch; it carries a reputational impact for both the streamers and the platforms.
Impact on Kick’s Reputation
Kick’s “acquisition” of proven talent in xQc and Amouranth is evidently an attempt to leverage their extensive followers for greater visibility and user acquisition, to potentially earn more money. But more importantly, the association with prominent streamers seems to be a strategic plan to fix Kick’s negative reputation and rebrand itself. After all, if major stars are there, it must be a good platform, right?
Potential Risks
However, this strategy is fraught with risks. Although unlikely, the streamers’ past (an apparently, new) controversies and bans might cast a negative shadow over Kick. More importantly, it could easily be seen that the platform is attempting to “whitewash” its poor reputation. Critically, this could be seen as blatantly inauthentic, since reputations cannot be “purchased” or instantly fixed. It requires authenticity, trust, and consistent positive engagement.
Impact on xQc’s and Amouranth’s Reputation
For xQc and Amouranth, this fresh start is an opportunity to build and improve their online image. It allows them to diversify content and reach a different audience segment. Since xQc can stream on other platforms, it seems like there is little downside.
Potential Risks
The existing fanbases on Twitch might view the move as a betrayal and avoid moving to Kick. The loss of a loyal audience and the perception of being a ‘sellout’ could be detrimental to their reputation.
Strategies for Reputation Management
Kick should probably focus on real community building. Transparency is paramount; Kick must be candid about its intentions and how it plans to address past controversies. Additionally, Kick should overhaul business initiatives and ensure that its content aligns with positive values (which is unlikely).
xQc and Amouranth should communicate openly with their audience about their goals and intentions with the move to avoid being seen as simply a money grab. They could consider being more mindful of the content they produce to avoid controversy. Engaging with the audience further and building a community on Kick that reflects a sense of authentic value is essential. Also, both should be cautious about aligning themselves with a platform that has a controversial reputation, as this could have long-term implications for their personal brand.
Case Study 2: Reddit’s API
Some Background: What is Reddit?
Reddit is an online platform where people share, discuss, and vote on content. Central to the site are communities called “subreddits,” each dedicated to a specific topic or interest–and there are thousands. Users can post text, links, images, or videos in subreddits, and others can upvote or downvote these posts, driving their visibility. Discussions on posts are encouraged, making Reddit a vibrant (and sometimes toxic) place for conversations and debates. It’s a hub of news and opinion, which I use daily.
Introduction to the Issue
Reddit entered full-blown meltdown mode when it introduced changes to its pricing for third-party developers (through their API). In response, almost all moderators of subreddits felt this was unfair, and in solidarity, shut down their communities in protest for at least several days, and some indefinitely. This was an online reputation fiasco for the platform, which made headlines in Forbes, and the New York Times.
Impact on Reddit’s Reputation
While it’s perfectly fine for Reddit to generate additional revenue through new changes, it did so in the wrong way. The lack of transparency backfired, tarnishing Reddit’s reputation as a community-driven platform, and left the platform in limbo.
Reputation Management Strategies for Reddit
The CEO, Ed Craven, should address the issue by communicating openly with its community and engaging with the developer community, instead of ruling by fiat. Reddit should commit to transparency in its policies and changes, especially those that directly impact its community, and not remove moderators as retribution.
Online Reputation Management Lessons
We’ve looked at two slightly off-the-beaten-path examples of reputation management unfolding in real-time. I think we can see that xQc’s move to Kick and Reddit’s API pricing controversy are more than just isolated incidents: in fact, they are examples of user perceptions and brand reputation gone wrong, in my opinion. With Kick, it seemed the acquisition of new talent is a way to quickly repair its damaged reputation. With Reddit, it’s an example of how NOT to implement change.
Lessons learned from Kick and xQc are that new associations come with both opportunities and risks. Kick must work on genuinely improving its platform and engaging with the community, while xQc should be cautious and strategic in building their brand on the new platform.
For Reddit, it serves as a reminder that transparency and community engagement are not optional but essential. The developer community is a significant part of Reddit, and alienating them through bad or negative communication has far-reaching consequences.
Hopefully, these cases in areas you might not be familiar with underscore the importance of strategic planning, transparency, and active reputation management.
They should serve as cautionary tales for businesses and brands who believe they can quickly change the narrative of a negative reputation. In reality, reputation management is a long, ongoing process. It is not just about reacting to negative publicity (i.e., crisis management) but proactively building a positive image through consistent actions and communication.
So, whether you are a streaming platform, individual content creator, or business, the principles of reputation management are the same. Even though these examples are seemingly unusual and offbeat, they are a reminder that authenticity, transparency, engagement, and alignment with real values are paramount principles of online reputation management.