Leader of the live broadcast side Twitchmade a statement today and announced that they made a change in publisher revenues.
today official Twitch A statement was made on the blog page that directly concerns publishers, especially large publishers. This statement is directly Twitch CEO Dan Clancy from your pen output. The following was first conveyed on the subject:This morning, we contacted a subgroup of publishers to inform them of some upcoming changes to the terms of the contract. This post gives us the opportunity to clarify these changes for all Twitch streamers and provide more details on our strategy to help streamers make more money on Twitch.”
“If you can’t make money, we can’t continue this service.who said From Clancyshared some information on the subject before moving on to the changes to be made: “For subscriptions, we set a 50/50 reference revenue share on net revenue of subscription earnings. Most Twitch streamers have these terms in their contracts. For a time, however, selected publishers We offered standard contracts with premium subscription terms.
This isn’t something we talk about publicly, but it’s widely known within the publisher community that such deals are made. In the past, we did not have a coherent framework for determining when and to whom these deals would be offered. About a year ago, we made the decision to stop offering these premium contracts to new publishers who are not subject to a contract that includes these terms.
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This of premium deals We ran into some problems when we thought about how it was handled. First of all, we found that we were not open with you about the existence of these agreements. Second, we noticed that the contract eligibility criteria were not consistent and these contracts were often offered to larger publishers. Finally, we believe that it is unfair to award standard contract publishers with revenue shares that vary by publisher size. “
After that, it came to the center of the subject and “We are making a change to the deal for these publishers who are still subject to these premium deals” It was stated that: “What they earn from subscription revenue Get a 70/30 revenue share for the first $100,000 they will continue. income over $100,000, will be shared at a standard 50/50 ratio. Although we are announcing this change now, this change It will come into effect after 1 June 2023.
After the effective date, publishers will be affected by these changes when their current contract is renewed. This information and more has been emailed to all publishers subject to these agreements. Moreover As June 1, 2023 approaches, we will send them full updated information and timelines.
Dan ClancyAccording to the statement of About 90% of publishers with standard contracts with premium subscription terms will not be affected by these changes with their current revenue. To ensure that those affected are minimally affected, we give them ample time before the contract goes into effect.
Moreover, we offer them a different way of earning income. Increasing the share of ad revenue to 55% under the Ad Incentive Program is a great way for these big publishers to recoup most, if not all, of that revenue. “
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“Why don’t we offer a 70/30 revenue share to the firm?” gave the following answer to the question: “We wanted to draw attention to the fact that we are partners in this business while determining the 50/50 revenue share. You do an amazing job creating great content, engaging your audience, and growing communities.
Our responsibility as your partner is to continue to invest in the products and people that enable you to grow. At the time of this writing, over 22,000 publishers submitted their ideas via UserVoice to ask us to switch all publishers to 70/30 revenue share and get paid faster.”
Interestingly, the company also talked about costs and said: “The cost of delivering high-definition, low-latency, always-available live video almost anywhere in the world is high.
According to the rates released by Amazon Web Services Interactive Video Service (IVS) (mainly Twitch video), who have 100 simultaneous viewers and For a broadcaster broadcasting 200 hours a month, the cost of live video exceeds $1000 per month.
We don’t talk about it often, because the truth is you shouldn’t have to think about it. Instead, we prefer that you focus on what you do best. But “Why not offer a 70/30 revenue share?” It would be an incomplete answer to ignore the high cost of providing the Twitch service when answering the question. “