Techno - SOCIAL

Twitch cuts its streamers’ profits

The Twitch platform is taking a cut in earnings to the largest streamers within its social network. Currently, the users associated in the transmissions receive a 50/50 revenue share for the subscribers in their channel. This implies that Twitch gets 50 percent of all net revenue, while the other half goes entirely to the streamer.

Theonline broadcasting platform is currently negotiating new terms for premium subscriptions. At this point, the largest streamers on the social network will move to a 70/30 revenue split. The reported changes would take effect on June 1, 2023. Twitch has decided, in this new policy, that those streamers with premium terms will keep 70 percent of their subscription revenue on the first hundred thousand dollars earned. Subsequently, the participation will be reduced and there the division will be 50-50 for each of the parties.

Twitch and its new monetary changes

The changes, which will take effect in about 8 months, will be taken into account when the contract with the transmitter and Twitch is up for renewal. This was announced by Dan Clancy, president of the platform, in a publication on the social network’s blog. The decided threshold of one hundred thousand dollars, will be calculated over a total period of twelve months from “the annual renewal date in accordance with the transmitter,” so stated Twitch’s director of communications for the Americas, Samantha Faught, in statements to The Verge platform.

The contract, and the new regulations, will be reinstated “on the first day of the subsequent 12-month period, and every 12-month period thereafter.” Still, it is estimated that about 90 percent of streamers with premium terms will not be affected in their “annual revenue,” according to Clancy.

For those concerned about the loss of revenue anyway, Clancy argued that there was a recent increase in Twitch’s revenue share under a 55/45 split. For the platform’s president, this is an “excellent way for large broadcasters to get most, if not all, of those revenues”.

Between losing streamers and remaining attractive

This decision presupposes that many of the major streamers may show their dissatisfaction with the new subscription revenue split. However, this does not seem to be a problem for Twitch. The company has shown no interest in catering to this group of creators as it has in the past.

Many of the top streamers within the platform have left for exclusive deals with YouTube. However, this migration to other streaming sites has failed to keep Twitch at the top as the platform where most people watch live streams by a wide margin.