Twitch will reduce its premium 70/30 revenue split for some streamers in June 2023. As it stands, some streamers are getting access to this more favorable revenue split because they “were instrumental in helping us build Twitch as we know it today,” but that’s ready for change in the future.
In a letter from Twitch president Dan Clancy shared on the company blog pagehe explains the reasons for this change and some context behind exclusive contracts.
First, it should be noted that this change will only affect streamers who are already on the 70/30 subscription revenue split, and only when their earned revenue exceeds $100,000. So, once a streamer gets $100,000 in their account, any additional subscription revenue will be in a lower 50/50 split, which is the site’s standard.
Clancy explains that it costs a lot of money to host a video streaming service on Twitch. “The cost of live video for a 100 CCU streamer broadcasting 200 hours a month is more than $1,000 a month,” he says.
This is included under Why not 70/30? subtitle of the letter, pointing to this as the reason for moving those on a 70/30 split to this new version. Clancy also states that Twitch will still occasionally offer select streamers custom deals at bargain prices, but that the team has been “reducing how often we offer these deals and the overall value of those deals.”
The news of this future cut in revenue above $100,000 comes amid a period of intense Twitch drama. Gambling streamer Silker scammed followers and streamers out of $200,000, Twitch is about to ban unlicensed gambling sites, and Trainwreck accused Mizkif of covering up a sexual assault and was also spotted paying Twitch staff large sums of cryptocurrency.
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