Streaming site, Twitch has responded to streamers who were pushing for a new revenue sharing plan. The streaming giant has denied users a better revenue-sharing deal despite the pressure from streamers and users.
In an open letter from the president of Twitch, Dan Clancy, has rejected the community's proposal to restructure the split such that it is more equitable for everyone while cutting the better rate that certain large streamers had. The majority of Twitch streamers receive 50% of subscriptions on Twitch. The other half goes to the streaming service. However, the streaming service had negotiated a premium deal with some big streamers. These streamers get a 70/30 revenue split. Twitch has now announced that this will drastically change and stop.
“For these streamers still on these premium deals, we're adjusting the deal so that they retain their 70/30 revenue share split for the first $100K earned through subscription revenue,” says Clancy in the letter.
In our latest blog post, we tackle a topic that's been at the forefront of the community for some time – the rev split.
We also provide a related update around monetization for a subset of Partners.
— Twitch (@Twitch) September 21, 2022
Beginning in June 2023, major streamers who are on the premium deal will only be eligible for the greater share of the first $100,000 in subscription income. Any revenue the user earns after this will fall under the standard 50/50 plan. Then, all streamers will go to a straight 50/50 split when they renew their contracts.
Why Twitch Will Not Allow 70/30 Sub Revenue Split With Streamers
Clancy continues to explain why the 70/30 split is not possible. Even after 22,000 people signed a “UserVoice” petition demanding the 70/30 revenue sharing plan, the company will not be introducing the change. He claims that one of the reasons is the high cost of running the service. Clancy also suggests that there are more ways to make money on Twitch besides subscriber revenue.
Clancy asserts that recent innovations such as hype trains, gifted subs, and the ad incentive scheme have increased income per viewing hour by 27% annually. He also talks about Prime Subs, which are free to Amazon Prime subscribers. According to Clany, they essentially raise the income share to 65%.
The announcement will undoubtedly disappoint many broadcasters who had hoped for a bigger income split from subscribers. But Twitch is obviously trying to steer streamers toward alternative revenue streams, including the ad incentives program.
What do you think about the latest information regarding the Twitch subscription revenue share split? Do you foresee even more Twitch streamers moving to other platforms for better deals? Let us know here on our socials or in the comments below.