Twitch Removes Its Best-Paying Revenue Split for Streamers
Twitch is removing its best-paying 70/30 revenue split for most of its streamers as it commits to standardizing its 50/50 split instead.
Announced in a blog post from Twitch president Dan Clancy, the streaming platform denied a 2020 petition that now has 22,000 votes to provide all of its streamers with at least 70% of revenue subscription.
While the 50/50 split is the most common revenue agreement, Twitch had been offering what it called “premium deals” to some of its top streamers that granted the more profitable 70/30 split instead. These premium deals are no longer being offered, and those on them currently (streamers with bigger audiences, generally) will see their revenue reduced in the future too.
They won’t go back to a strict 50/50 deal when these new rules come into place on June 1, 2023, however. The streamer will still be on a 70/30 split until $100,000 is earned through subscription revenue, and afterwards will be reduced to 50/50.
“In an ideal world all streamers would be on the same set of terms regardless of size,” Clancy said. “However, instituting that policy would have a negative impact on the streamers currently on these terms, many of whom were instrumental in helping us build the Twitch we know today. These streamers have come to depend on the additional revenue split to maintain their standard of living.”
Clancy said Twitch would not be switching to 70/30 because of the amount of money it invests in the products and services that lead to streamer growth, things like Prime Subs, Community Gifting, Hype Train, and the Ads Incentive Program.
The fact twitch’s solution to monetary problems is to cut creator pay rather than facilitate a better platform so more viewers visit the live-streaming site is incredibly worrying. Give us the tools + info we need so we can make more engaging content, don’t soft cap our earnings. https://t.co/e5aNurzGZc
— eric pointcrow (@PointCrow) September 21, 2022
The cost of running Twitch was also cited, with Clancy saying that “delivering high definition, low latency, always available live video to nearly every corner of the world is expensive.” Amazon’s self-prescribed cost of streaming is also pricey: Clancy said the cost for a streamer with 100 connected users, streaming for 200 hours a month, costs more than $1,000 a month.
Despite Twitch saying it made the decisions with streamers in mind, as “streamers are and always will be the foundation of our global community,” some people who use the platform have spoken out against its decision.
“The fact Twitch’s solution to monetary problems is to cut creator pay rather than facilitate a better platform so more viewers visit the live-streaming site is incredibly worrying,” said streamer PointCrow in a tweet (above). “Give us the tools and info we need so we can make more engaging content, don’t soft cap our earnings.”
Twitch has been in the news a lot in the past couple of days, first for banning gambling streams on the platform and also for reports of child predators using the platform.
Ryan Dinsdale is an IGN freelancer. He’ll talk about The Witcher all day.