Twitch has introduced something new called Cheering. It is a way for people to show support for streamers and to celebrate exciting moments with the community. The system is currently in beta and can only be used with Cheer-enabled Partners. Twitch hopes to add “more cool stuff” in coming months.
Cheering functions sort of like a microtransaction. People start by clicking on the Bits icon that appears next to the emote button on channels that have Cheering enabled. Right now, you can get 100 Bits for $1.40 (and the prices go up from there). Twitch is using Amazon Payments as their payment technology, but appears to be considering adding additional local payment methods and currency support in the future.
After you have purchased some Bits, you can use them to support a Cheer-enabled Partner on Twitch. Type “cheer” into the chat, followed by a number. It will show up in the chat with a special Bits Emote icon. Those who do a lot of Cheering in a specific channel can earn a Cheer Chat Badge.
What does this mean for people who stream on Twitch? Only Cheer-enabled partners are able to make use of the Cheering system. In one of the blog posts that Twitch created to explain Cheering, it says:
Twitch provides participating partners a share of the revenue Twitch receives from Bits equal to 1 cent per Bit used to Cheer for them, subject to certain terms and conditions such as our Bits Acceptable Use Policy.
The same blog posts states that this is the first version of Cheering. Twitch expects that Bits will also be available through promotions and as rewards for activities on Twitch. They are also working to provide additional benefits to broadcasters that people Cheer for. Again, it is still in Beta, so there could be a lot of changes made before it is finalized.