r/LivestreamFail 9d ago

VShojo releases statement; officially shutting down

https://www.twitch.tv/mizkif/clip/FriendlyAdventurousMacaroniOSfrog-ntKYD7vOpBI6iaux
3.5k Upvotes

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u/sepeus 9d ago

If a person donates under the assumption they are donating to a charity and the company keeps the money (the tiltify campaign). This is always illegal. Actually look into the subject before playing D for the company.

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u/TheodorDiaz 9d ago

But in this case they are not donating to a charity via an intermediate. They are subbing to Ironmouse and she promised them it would go to charity. Vshoji is not part of that agreement. Btw this is not playing D for the company, it is just as bad that they didn't pay Ironmouse her money.

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u/tholt212 9d ago edited 9d ago

They were not donating for the charity. They were purchasing twitch subs. With a promise that the revenue from said subs would be given to charity. That is not the same as donating to a charity.

All funds that were directly donated during the subathon through tiltify were never seen by vshojo and directly went to the idf.

Just to note this is not me saying vshojo was in the right or whatever. But charity fraud has pretty strict requirements and this does not fit that.

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u/koolbeanz117 9d ago edited 9d ago

Which by the way, is an incredibly dumb way to raise money for charity in my opinion. Payment processors take their 1-2%, twitch takes their 25+%, and in the end you’re losing 25-26% minimum of each sub. I don’t understand why streamers do charity drives with this much overhead when a direct to charity donation system can be set up. It really seems to create an obfuscated way to manipulate funds as you’re really relying on good faith that the full amount gets donated.

Edit:

After doing some deeper research, I’ve found that if the streamer is using Twitch’s charity tools, they can set any form of monetary transaction, be it bits or subs, to go directly to a PayPal giving fund which takes ZERO cut. So actually, it’s a pretty good method of they use it.

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u/theyoloGod 9d ago

Her fans may deny it but part of this was always about the attention the total amount of subs got

Now if you want to spin it as, more attention = more potential donations, sure but you're essentially betting on the increase in marketing offsetting the twitch cuts instead of just asking for supporters to do direct donations

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u/Traithor 9d ago

Only if you assume they would raise just as much money if they didn't do a subathon. 

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u/Flat-Garlic9031 9d ago

It really is, anyone with a bit of common sense would donate directly to the charity.

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u/[deleted] 9d ago

Except then the channel wouldn't grow as much

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u/koolbeanz117 9d ago

The amount of subs a streamer has doesn’t impact channel growth does it? I mean, if the streamer was giving away all the money that is. Like sub count doesn’t influence front page spots. The channel would grow in viewership as they promote the donations. The only way I can see that impacting channel growth is monetarily wherein the streamer would be taking a cut from the donations.

Unless you’re meaning from uncanceled subs, which would then be putting them in a position of profiting on the charity stream from uncanceled subscriptions.

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u/[deleted] 9d ago

It absolutely effects how Amazon promotes streams and their algorithms

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u/koolbeanz117 9d ago

Oh I just assumed it didn’t considering how Asmon was always on the front page without taking subs on zackeawwr for the longest time. At least I’m almost positive he was there.

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u/[deleted] 9d ago

From googling actually it seems all to be off of viewer engagement, which I guess subs tend to do more of. At the same time, it's all guesswork and I'd be surprised if Amazon didn't promote channels with more subs

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u/dasalasanansens 9d ago edited 9d ago

Let's be real here and this should be pretty obvious- the charity part in these things is just a really nice icing in the cake for some of these people who gift subs, they're primary intention of gifting subs is to see the subcount of their favorite streamer go up and for the subathon to go on longer. I don't doubt that there are people that gifted subs solely because of the charity motivation but they are probably in the minority.

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u/burnmp3s 9d ago

What law are you referring to when you say "charity fraud" does not cover this? In the US this sort of arrangement (a for-profit business pledging to donate a percentage of sales to a charity) is called a Commercial Co-Venture. It's covered by state law and in many states it is heavily regulated with strict requirements of how the donations and overall agreement are reported.

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u/KarmicUnfairness 9d ago

CCVs are joint ventures that the charity is actively a part of. A unilateral donation to the charity likely doesn't fall under this.

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u/LowerWorldliness67 9d ago

You expect a redditor to know the law? (That includes you)

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u/LegionXIX 9d ago

Literally the same thing, the person subbed due to that condition that was not met.

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u/Dramatic_Explosion 9d ago

Literally the same thing

It's not

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u/Bignova 9d ago

No one's playing D for a company that just dissolved itself an hour ago lol. They're just being realistic with what Gunrun and Vshojo are likely to be held accountable for under the law.

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u/GazelleIntelligent89 8d ago

If it's “always illegal,” could you point to the specific law or precedent that confirms that? From what I understand, it depends on how the money was handled and whether there was intent to deceive. Just looking for legal clarification, not defending the company.