Twitch announced changes to the monetization of content on January 24, 2024. This is likely to please large creators like MontanaBlack, as the unpopular cap of $100,000 for a preferred 70:30 split is being removed.
What is this change? In September 2022, Twitch caused discontent among big streamers when Twitch stripped them of their financial special treatment. While a 50/50 split is common on the platform, where content creators receive 50% of the revenue from paid subscriptions on their channel, the biggest streamers could secure a favorable 70/30 split.
Instead of granting all streamers the 70%, Twitch introduced a revenue maximum of $100,000 per year at that time – anyone earning more had to give up 50% of it. This change is being lifted immediately, according to a press release on January 24, 2024.
This is intended to increase the “growth and income potential” of streamers. In the future, large streamers will benefit from an unlimited 70/30 split. The $100,000 cap no longer matters.
This will especially please streamers like MontanaBlack, who has criticized Twitch sharply and has been considering a switch to the competing platform Kick.
Big streamers get more money, but what about the rest?
What else is changing? Starting May 24, Twitch also plans to expand the so-called Partner Plus program and make it accessible to affiliate streamers as well. In this context, it will be renamed to the Plus Program.
An additional tier will allow for a 60/40 split, and the criteria for receiving 70% will also be lowered. This is intended to allow three times more streamers to gain access to the advantageous revenue share.
Furthermore, starting in June 2024, the payout model for a subscription through the Prime Gaming service will be changed. There will be a fixed rate for each country. The exact amount will be detailed in a blog post.
What are the initial reactions? On social media, the change is already being actively discussed. So far, the mood has been mostly positive. It’s described as a big “W”, a “win” for Twitch. One user praises that the streaming platform is caring for the needs of its creators – but also mentions the recent layoff of about one-third of the workforce (via X).
Criticism seems to come mainly from smaller streamers: The new regulations would only benefit top streamers; others would gain nothing from it (via X).
The transition is particularly interesting as Twitch CEO Dan Clancy recently admitted that the streaming platform is not profitable and is supported by Amazon. This was also the reason for the layoffs. Instead, they now apparently want to focus on the satisfaction of the streamers. Twitch CEO publicly admits they are not making money: “We were bigger than we needed to be”
