Nintendo demands ad revenue
So. Nintendo recently talked with a certain website about some videos hosted there. Long story short Nintendo wants all all the money from the ads on videos featuring their products. Because of copyright law, they can do that. Now, let's look at this for a moment. What Nintendo is targeting is the let's plays, where game personalities review and play games for the consumer enjoyment. This is known to be a huge marketing boon, exposing your game to hundreds of thousands if not millions. A ton of people buy games based off these videos; I know I do.
Now you may be saying "OK they help Nintendo cool, but they're using Nintendo's stuff, it's their right to do what they will." Perhaps so, but being allowed to do something doesn't make it right. A lot of these game personalities make their living off these videos. There was one guy I watched called ColbyCheeze, making League of Legend videos was his job. Imagine if Riot Gaming took that ad money from him.
Let's look at the numbers here. How much money do these LPers really get? Well, aforementioned certain site pays their users one third a cent for every view. This makes for some real easy math. One view is one third a cent. Ten views is three cents. A hundred, thirty. A thousand, three dollars. A hundred thousand, three hundred dollars. A million, three thousand dollars.
Now, some users have massive fan bases and get millions of views on a regular basis. But while Nintendo has their eyes on the big channels with the big bucks (because we all know Nintendo, a multimillion dollar company, needs a couple extra thousand bucks), their policy affects the little guy. Take ColbyCheeze for example. His videos use to get around two to four hundred thousand views. He put out about a video a week, sometimes two. His yearly income from ads hovered around ~50k, which the mean American income is around 45k so that's alright for a single guy in an apartment. Is he getting super rich off of Riot's game? No, and that's why Riot promised a long time ago never to do what Nintendo is doing now. Colby has given Riot several thousands of new players, and Riot is appreciative of people like him around the internet, giving them free marketing.
Fact of the matter is at the end of the day, what Nintendo is doing here is greedy, plain and simple. Are they in the legal right? Yes. Is it their right to govern what is done it their intellectual property? Yes. But having the right to something doesn't make all your decisions correct. The LPers on that certain site and indeed, sites around the internet, give Nintendo free marketing and many many new customers, and for what? A third a cent a view. Is that really so much that Nintendo feels that it needs it?
Maybe the 3DS launch and the WiiU launch hurt them more than initially thought. So now they're taking it out of the pockets of people who make their meager living off of hawking their game to the internet. Pro move Nintendo.