At TwitchCon in San Diego, Twitch’s CFO Mike Minton explained why the largest streamers on the platform will see their revenue share cut this summer 2023: from 70% it drops to 50% after an annual revenue of $100,000. As a tip to offset the loss, he advises to increase advertising for Amazon Prime. One can assume that streamers like MontanaBlack will not be convinced by this.
This news caused a stir:
- On MeinMMO we reported on September 22 that Twitch would soon pay some streamers less than usual:
- Normally, streamers share revenue with Twitch in a 50:50 ratio
- But some bigger streamers like MontanaBlack receive special treatment: They get a ratio of 70:30 in their favor. Some smaller streamers had demanded that all streamers should receive this 70:30 ratio. That would be fair.
However, on September 21, Twitch announced that soon even larger streamers would only receive this 70/30 split up to an annual revenue of $100,000. After that, they will also drop to 50/50.
MontanaBlack says: New split costs large streamers $300,000 to $800,000
What was the reaction? This statement provoked outrage among many Twitch streamers. One of the largest German Twitch streamers, MontanaBlack, calculated that large streamers like him would miss out on between $300,000 and $800,000. In his typical manner, he explained in a livestream on Twitch that he is rightly outraged and that everyone else would feel the same way:
Some people would say: Yeah … I find that totally fine because you already earn enough. I want you to save those comments. And I will now explain why. This is a double standard that these people are driving. Because none of those who post this in the comments on TikTok or elsewhere would say in the situation – now in my case, for example, or in the case of Elias or a large American streamer: We’re talking about three-, four-, five-, six-, seven-, eight-hundred thousand dollars a year that you’d earn less.
And none of you little whiners, who write: Oh, I find that fair! – None of you double-standard ass-kissers would say to Twitch: 50/50, after reaching $100,000 – Let’s do it!
Montanablack
MontanaBlack openly toyed with the idea of leaving Twitch. The reduction of sub prices on German Twitch in 2021 was already a negative development. Now, the platform is getting worse.
Even slightly smaller but still large streamers like Staiy stated that after the new calculation, they would miss $50,000. Staiy is considering leaving Twitch under the new worse conditions. He says in a video that he will cancel his Twitch contract at the end of 2023 (via youtube).
Other German Twitch streamers explained that the $100,000 does not end up with the streamer, as many other deductions such as taxes, insurance, or electricity apply.
MontanaBlack talks about the new split and the costs – from 1:17 minutes
Twitch’s financial controller shifts the blame somehow to Amazon: They want Twitch to make money
This is how Twitch justifies the decision: At TwitchCon in San Diego, home to a completely harmless ball pit, Twitch’s CFO Mike Minton reiterated the decision. The “VP Monetization” said:
We have looked at all options: Can we offer a 70/30 split for everyone? The answer is No, it’s not feasible for Twitch in the long run. At least from what we know today.
The typical response we always get: Hey, wait, you’re part of Amazon. What are you talking about? – But what you have to understand is: Amazon expects Twitch to thrive as a financially independent company. But the good news is: Amazon has this great advantage called Prime, and as part of the Prime offering, they have Prime Subs.
Mike Minton, VP Monetization Twitch
Before his time at Twitch, Minton had already worked for Amazon for 1 year and 9 months.
This is his tip: The CFO advises Twitch streamers to talk more about Amazon Prime, as there are still some Prime subscriptions that are not distributed.
By raising awareness of Amazon’s Prime offer, you could also increase revenue.
This is what’s behind it: This is already a performance that streamers will swallow hard.
Twitch ultimately blames Amazon for having to be stingy soon. It is advised to counter this simply: Just do more advertising for Amazon and your Prime offer. This seems very self-serving because both Twitch and Amazon benefit significantly – especially through increased customer loyalty.
It seems that Twitch is underlining its market dominance here and is leveraging the “Amazon Prime Subs” advantage, which is nothing new, as this advantage has existed forever.
The feeling persists that the largest streamers will soon be worse off because Amazon is no longer willing to simply invest in Twitch’s growth but wants to see profits.
It must be made clear that only a small portion of streamers are affected by the new regulation. Many people on Twitch have never been within reach of $100,000 in revenue or a 70/30 split:
How much money do “normal” Twitch streamers earn? Who can live “well” from Twitch?
