Twitch the president of Twitch, Dan Clancy, has issued a statement on the revenue split that has been changed.
The streaming platform that is gaining popularity, Twitch, is reducing the split of revenue between streamers and advertisers from 70% to 50% starting on June 20, 2023!
Twitch always had a base income share that was 50/50 of the net earnings. The streamers would have 50% of their savings while the rest goes to Twitch. But, Twitch offered premium subscription terms to their largest streamers, with an income split of 70/30 (70 percent for streamers and 30 percent for Twitch).
“For the streamers that are using these premium deals, We’re changing the terms of the deal to ensure they keep its 70/30 share in revenue for the first $100k earned by subscription revenue. Any revenue above $1 million will be split according to the 50/50 share split standard. We’re announcing this change today however it won’t take effect until June 1, 2023.”
Dan Clancy, President of Twitch Interactive, Inc.
The renewal of the annual agreement date will be used as the basis for the calculation of the threshold amount to $100,000 for a 12-month time period. Samantha Faught, Twitch’s head of communications, stated that “The threshold will reset on the 1st day of the next 12-month period and every 12 months after that”
The reason for these changes to premium packages is that Twitch hasn’t been clear about its value as well as they weren’t unidirectional in their criteria when choosing the best streamers. The cost of their services is another element. Clancy declared, “Delivering high definition, low latency, and always accessible live video to virtually all corners of the globe is costly. Based on the published rates of Amazon Web Services’ Interactive Video Service (IVS), which is basically Twitch live video, the cost of 100 CCU to streamers who stream 200 hours per month, is greater than $1,000 each month.”
Clancy added that nearly 90percent of streaming companies will not be affected, based on their current revenues. For those who have been affected the increase in advertising revenue share is offered a 55/45 split of revenue, to cover the bulk of the revenue loss.
Despite the recent change to Twitch’s revenue split, Clancy still believes that Twitch is the most effective platform to earn money as a streamer. Additionally, the community on Twitch can be described as “real and tangible” from sharing memes of chat to TwitchCon meetings.