Ludwig, a popular streamer, spoke directly to Twitch in a new vlog, criticizing the platform’s planned monetization changes.
Twitch is currently under scrutiny from its community after Bloomberg revealed there will be changes to how streamers make money on the platform.
Currently, every streamer who participates in the affiliate program can take home 70% of their channel’s subscription earnings. The 70/30 split is a well-worn standard used for revenue across all technology platforms, with Valve’s Steam storefront and Apple’s App Store also using the same setup.
Now, Ludwig, a streamer who switched to YouTube in November, has offered his take on the changes and their potential to hurt many streamers’ incomes in a new video.
Ludwig vs Twitch on YouTube
The 10-minute video is surprisingly concise to get the point across, with a greater focus on the smaller streamers who aren’t pulling the cash like those at the top.
Ludwig now streams exclusively on YouTube and leaves his Twitch account of 3 million for a contracted position. However, he’s still keeping an eye on the Amazon platform and hasn’t held anything back in this case.
Ludwig cited a Smash Bros. Ultimate commenter as an example who is currently taking home $84,000 and with the changes could see a $24,000 reduction in Twitch’s payout, leaving him at $60,000 pre-tax remains.
Ludwig’s example is perhaps a bit pricey, as CONEY, the commentator, currently has around 2,000 subscribers to his channel.
Lower subscription users who are just getting started will have to resort to the new promotional changes being prepared by Twitch, which would mean an overall increase in their presence on the platform.
These changes follow a current trend for streaming or subscription-based services like PlayStation Now, Netflix, and Xbox to step up their advertising to drive sales, especially for free-to-play games where a manufacturer like Sony might not see a dime from a user at all.
Ludwig points out that Twitch users are mostly content with advertising since it’s a relatively new concept for the platform. With the live aspect, an ad can risk missing a crucial moment of a stream. Imagine a UFC fight that turns into a commercial the moment someone folds.
In the video, Ludwig explains how the money for advertising is divided between Twitch and the streamer. Twitch currently offers between $1 and $3.50, with Ludwig stating that “most” of the larger streamers get the full amount, while others on the lower end may only get $1 for every 1,000 impressions (i.e. eyeballs on the ad) see.
The problem here is that smaller streamers would have to rely on ads during their streams to recoup lost subscription money, which could crowd out viewers due to their non-skippable nature and long length.
At the 4:45 mark in the video, Ludwig jumps from one stream to the other in the middle of the commercial. As soon as the new stream loads, it is immediately presented with the same full-length ad, perfectly illustrating the frustrations to come.
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