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Why YouTube and TikTok Are Pushing Live Tipping

The Information · Rocket Drew · last updated

Last week, YouTube began introducing jewels, virtual tips that fans can buy to send creators during livestreams. YouTubers can exchange these tips for cash, a penny per jewel. The Google-owned video site is the latest to get into live tipping, which has been popular for years on Twitch. 

As the chart below shows, most major social apps are now offering digital tips for live streamers which generally cost about a penny per gift (or a dollar on Instagram) and are usually sold in bulk. The platforms’ cuts of these purchases vary, from nothing from Instagram to 50% for TikTok.