The Power of Star Creators: Evidence from the Live Streaming Industry

Abstract

In this article, the authors examine the impact of star creator exits on digital content markets, leveraging exogenous events on Twitch. Using a synthetic difference-in-differences approach, they estimate the causal effects of star creators’ exits from the live streaming platform. Their findings reveal that, at the live streaming category level, the exit of a star creator leads to a sizable decrease in both content provision and consumption within the star creator's focal category. At the individual creator level, the effects are heterogeneous, varying by the creator's audience size and contractual status with the platform. Major creators reduce their content provision, while micro creators maintain their streaming activity, though both groups experience a decline in viewership. Additionally, contracted creators tend to sustain their content provision levels following a star creator's exit, whereas noncontracted creators exhibit a significant decline. Lastly, the authors find that the impact of a star creator's departure persists for several months, indicating a lasting effect at both the category and individual levels.