Streaming platform Twitch has announced changes to its revenue system that will begin next year, and this new update will affect some of its biggest streamers. Twitch’s current revenue model works on a 50/50 split between partner streamers and the platform when it comes to paid subscriptions, with larger streamers getting a more generous 70/30 split.
This will change in June 2023, as streamers will be able to keep 70% of subscription revenue on the first $100,000 earned, with the share then reverting to a 50/50 split. The new threshold will affect the top 10% of Twitch streamers, and one of the reasons for the policy change is the increased cost of video hosting according to blog post from Twitch President Dan Clancy.
“Delivering high-definition, low-latency, always-available live video to nearly every corner of the world is expensive,” Clancy wrote. “Using the published prices of Amazon Web Services (IVS) Interactive Video – which is essentially Twitch video – the cost of live video for a 100 CCU streamer streaming 200 hours per month is more than $1,000 per month. We don’t usually talk about that because, frankly, you shouldn’t think about it. We’d rather focus on what you do best.”
It’s worth noting that Amazon owns Twitch, having bought it back in 2014 for around $970 million in cash. The rest of the Twitch streaming community will remain largely unaffected by this update, which have standard contracts with premium subscription terms.
Twitch has had a turbulent year so far, losing big-name streamers like Myth and LilyPichu, while also facing ultimatums from big-name streamers like Pokimane, Mizkif, and Devin Nash to crack down on online gambling content. In an update to its partner program last month, Twitch changed its exclusivity agreement and now allows content creators to stream on other platforms.
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