Streaming platform Twitch has announced changes to its revenue system that will begin next year, with the new update affecting some of its biggest streamers. The current Twitch model for revenue works on a 50/50 split between partner streamers and the platform when dealing with paid subscriptions, while larger streamers get a more generous 70/30 split.
That will change in June 2023, as streamers will get to keep 70% of the first $100,000 in subscription revenue earned, and the share will go back to 50/50. The new threshold will affect the top 10% of streamers on Twitch, and one of the reasons for the policy change is the increased cost of video hosting. Blog post From Twitch President Dan Clancy.
“Delivering high definition, low latency, always available live video to nearly every corner of the world is expensive,” Clancy wrote. “Using published rates from Amazon Web Services’ Interactive Video Service (IVS) — which is basically Twitch Video — the live video cost for a 100 CCU streamer who streams 200 hours a month is over $1000 per month. We don’t. Usually Talk about it because, frankly, you don’t have to think about it. We’d rather focus on doing what you want to do.”
It’s worth noting that Amazon owns Twitch, having bought it in 2014 for about $970 million in cash. The rest of the Twitch streaming community will be largely unaffected by this update, who are on standard contracts with premium subscription terms.
Twitch has had a tumultuous year so far, losing big-name streamers like Myth and Lilipichu and facing ultimatums from big-name streamers like Pokemon, Mizkiff and Devin Nash to crack down on online gambling content. In an update to its partner program last month, Twitch changed its exclusivity agreement and now allows content creators to stream on other platforms.
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