The streaming service Twitch has just been praised for the restriction of gambling streams, now criticism is pouring in. Especially larger streamers are said to receive less money in the future. We at MeinMMO show you what it’s all about.
What is going on? Most Twitch streamers receive 50% of their subscription revenue. However, larger streamers have so far received special treatment, where the revenues were split 70/30. This has recently led to increasing discontent, as smaller streamers demanded this division for everyone.
Now the streaming platform is reacting, but not in the way many would have wished. Instead, starting from June 2023, all streamers, regardless of the size of their channel, will receive the standard division of 50/50, as Twitch announced on September 21 (via Twitch).
Really everyone? There is one exception: Streamers who currently have the premium deal of 70/30 will be allowed to keep these conditions, but only up to an annual revenue maximum of $100,000.
For revenue from subs that exceed this threshold, the 50/50 division will also apply for the remainder of the 12-month period – at least for “Tier 1” subscriptions. For “Tier 2” and “Tier 3” subs, 60% and 70% go to the streamer.
How does Twitch justify this: First of all, the new division is supposed to ensure more transparency and fairness among streamers. Additionally, Twitch argues with the rising costs of providing their services.
The resulting loss of revenue for some streamers is to be compensated by a higher share of advertising revenue and a lowered withdrawal threshold starting at $50.
In this context, Twitch also mentions the subscriptions that are included for Amazon users in their Prime membership. You can see what this model is all about in the video.
German streamers are concerned about the development
How are the reactions? On Twitter, opinions vary widely. After all, the change only affects the larger – and hence higher-earning – streamers. But it’s not that simple.
After all, streamers of this size have completely different expenses, so the argument goes. From the money that comes in through Twitch, employees and any premises must be paid (via Twitter). The streamer Olli, part of the Twitch Trio DoktorFroid, elaborates on this further.
The cap of $100,000 is not what would land with the streamer. Rather, it is how much is paid to Twitch. Of that, only $1.50 per sub would arrive at the streamer, from which costs for taxes, insurance, and electricity would then be deducted.
Olli finds the changes “worrisome” and says he is “extremely sad and disappointed”. He fears that in the long run the quantity and quality of content could decline. You can find the entire thread here:
And some smaller streamers criticize the changes as well. Twitch would be sending a signal that effort and growth do not pay off.
btw I’m miles away from an annual earning of 100k on Twitch, but it just shows me that if I work harder, there will still be no support. I think to myself, on YouTube I already get the 70/30 share on my very first livestream!
— Mini (@itsminimoli) September 22, 2022
Some users, on the other hand, see hypocrisy among the proponents of the new regulation: The supposedly “rich” streamers are not to be allowed to keep the money, but the fact that revenues end up with the billion-dollar Amazon corporation is irrelevant to the people (via Twitter).
Is there now a mass exodus to YouTube?
What’s next for streamers? In light of these developments, some streamers are considering whether Twitch is still the right platform for them. Many seem to be contemplating the idea of jumping ship to competitors like YouTube.
Others warn against a hasty switch: On YouTube, it is significantly harder to be discovered by potential viewers.
What do you think of the decision? Have the “rich” streamers had it too good for too long and are the changes just fair? Or does every streamer lose out while Amazon profits? Feel free to leave us a comment with your opinion.
2022 seems to be the year of major changes for Twitch: Just in August, it became easier for partners to reach a larger audience – under certain conditions.
Some are already predicting the end of Twitch or calling for the “merciful blow” for Twitch:
Others warn against a hasty switch: On YouTube, it is significantly harder to be discovered by potential viewers.
What do you think of the decision? Have the “rich” streamers had it too good for too long and are the changes just fair? Or does every streamer lose out while Amazon profits? Feel free to leave us a comment with your opinion.
2022 seems to be the year of major changes for Twitch: Just in August, it became easier for partners to reach a larger audience – under certain conditions.
