Machinima Issuing 10-Day Ultimatums: Accept Less Money or We Drop You
One such notification, pictured above, frames the issue as price regulation, informing the partner that he was previously receiving above-average compensation. The email reads:
“Throughout the length of your partnership, we have provided you with an above average CPM to incentivize your creative efforts and to fuel further growth with your content career, but at this time we need to adjust your CPM to a rate that reflects your channel’s current profitability in order to continue our partnership.”
CPM, or cost per mille, is how much money a partner earns per thousand video views. The anonymous Redditor who posted the image claims that his CPM was not above average, but instead at a standard rate of $2. The Redditor also claims the new rate Machinima offered was 60% lower than his current rate.
What if he refuses? The email goes on to say:
“Our primary goal is to team with you in order to agree on a mutually beneficial solution. That said, per the terms of our current agreement, we hereby notify you that such an agreement will terminate effective January [date withheld] 2013 unless we are able to agree upon terms prior to that date.”
While the date is withheld to protect his identity, the Redditor asserts that Machinima offered a 10-day notice.
Other Redditors have corroborated the news, though not all partners may be affected. Speculation suggests that a few of Machinima’s popular partners banded together and informed the network that they’d leave if their compensation wasn’t increased, which has led Machinima to lower its rates for other partners; Game Front cannot comment on the legitimacy of these rumors.
If you happen to see content creators you follow leaving Machinima this month, this may be why.