The Twitch streaming service, which has just received praise for restricting gambling streams, is now facing criticism. Larger streamers in particular should receive less money in the future. We at MeinMMO show you what’s behind it.
What’s going on there? Most Twitch streamers get 50% commission from their subscriptions. Larger streamers have received special treatment so far, with sales divided 70/30. This has caused a lot of resentment lately, with smaller streamers demanding this division for everyone.
The streaming platform is now reacting, but not in the way many would have wished. Instead, starting June 2023, all streamers, regardless of the size of their channel, will get the standard 50/50 split, as Twitch announced on September 21 (via Twitch).
Really all? There is one exception: streamers who previously had the premium deal of 70/30 should continue to be allowed to keep these conditions, but only up to an annual maximum turnover of $100,000.
Earnings from subs that exceed this limit will also be split 50/50 for the remainder of the 12-month period – at least for “Tier 1” subscriptions. For Tier 2 and Tier 3 subscriptions, 60% and 70% goes to the streamer.
How does Twitch justify this: First of all, the new division should ensure more transparency and fairness among streamers. Also, Twitch argues with the rising cost of providing their services.
However, the resulting loss of revenue for some streamers would be offset with a higher share of ad revenue and a lowered payout threshold of $50 and above.
In this context, Twitch also addresses the subscriptions that Amazon users receive in their Prime membership. You can see what the model is all about in the video.
German streamers are concerned about the development
How are the reactions? On Twitter, opinions differ quite widely. After all, the change only affects the larger – and thus higher-earning – streamers anyway. But it’s not that simple either.
After all, streamers of this size also have completely different expenses, so one objection. From the money that comes in via Twitch, employees and any premises would have to be paid (via Twitter). Streamer Olli, part of the Twitch trio DoktorFroid, elaborates further.
The $100,000 cap is not what would end up with the streamer. But how much is paid to Twitch. Of this, the streamer would then only receive $1.50 per sub, from which costs for taxes, insurance and electricity would then be deducted.
Olli finds the changes “worrying” and says he is “extremely sad and disappointed”. He fears that the quantity and quality of the content could decrease in the long term. You can find the whole thread here:
And some smaller streamers also criticize the changes. Twitch would thus send a signal that effort and growth do not pay off.
BTW I’m miles away from earning 100k a year on Twitch, but it just shows me that if I work harder, no support will come. I think to myself, on YouTube I already have the 70/30 share on the very first live stream!
— Mini (@itsminimoli) September 22, 2022
Some users, on the other hand, see double standards among the advocates of the new regulation: the supposedly “rich” streamers would not be given the money, but people don’t care that the revenue ends up with the multi-billion dollar Amazon group (via Twitter).
Is the mass exodus to YouTube coming now?
What’s next for streamers? In view of the development, some streamers are considering whether Twitch is actually still the right platform for them. Many streamers seem to be toying with the idea of defecting to YouTube’s competition.
Some are already predicting the end of Twitch or calling for the coup de grace for Twitch:
Others warn against an overly careless change: On YouTube it is much more difficult to be discovered by potential viewers.
What do you think of the decision? Have the “rich” streamers had it too good for too long anyway and are the changes only fair? Or do all streamers lose here while Amazon profits? Leave us a comment with your opinion.
2022 seems to be the year of big changes at Twitch: It was only in August that it was made easier for partners to reach a larger audience – subject to conditions.
Twitch changes important rules, now allows partners to Facebook and YouTube – but not always