Twitch streamers are quite furious after the company’s decision to drastically change the funds it charges from content creators. Twitch is one of the biggest platforms on the web and that’s largely due to the developers who have been streaming on it for years. Without creative, fun creators, there would be no Twitch. The Amazon-owned platform has rewarded its creators with new features and money through donations, subscriptions, and more over the years. Amazon has even rolled out a feature that allows viewers to connect their Amazon Prime accounts and give a streamer a free subscription each month, giving the streamer pretty much free money.
Well, there’s a big change coming and people are incredibly unhappy about it. Hours after Twitch confirmed it would regulate the type of gambling content on its platform, it burned much of the goodwill that went with that news by announcing something many had feared. Twitch has confirmed that it is reducing its 70/30 split to 50/50 for all streamers, meaning creators will lose around 20% of their previous earnings. Well, the 50/50 model has been around for a while, but for larger streamers that dominated the platform and were growing fast, they got the 70/30 split. Those currently using the 70/30 model can keep that for the first $100,000 earned from subscriptions, but after that it’s split 50/50. These changes will take effect in June 2023. Streamers can offset this by showing more ads, as Twitch has confirmed that its ad share is now 55%. Twitch also noted that the reason for this is the cost of running the platform, allowing the money to be reinvested in more staff and products. Some streamers found the reasoning questionable given that Twitch is already not adding many meaningful new features, has no shortage of moderation issues, and is also powered by giant tech giant Amazon.
Of course, Twitch streamers are pretty pissed about this, and some YouTubers like Jerma are even threatening to leave the platform immediately. While Twitch might have dismissed this a few years ago, the streaming climate has changed. YouTube is a major player in the streaming space and is growing rapidly with developers like Ludwig, TimTheTatman and Valkyrae. YouTube has also become home to DrDisrespect following his Twitch ban, although he doesn’t have an exclusive deal like the streamers mentioned above.
What do you think of Twitch’s decision? Let me know in the comments or reach out to me Twitter @Cade_Onder. Below you can see some reactions to the news.
A late-night press release is usually a bad sign
I thought you’d drop “Making money from the content you make isn’t enough 🥺” at 3am, huh
– Alanah Pearce ❄️🪓 (@Charalanahzard) September 21, 2022
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A call to action
If all the streamers upset about the canceled sub-split reduction went to Twitchcon, it would be a bold statement and cost Twitch dearly.
The false “Twitch cares about creator success” has been dropped, so it’s time to show that this isn’t a two-way street.
Streamers should organize themselves.
— Shannon (@ShannonZKiller) September 21, 2022
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Twitch’s reasoning is alarming
Here’s the explanation: The top 500 creators see 29% less revenue per subscriber after making $100,000 in one year. No other Twitch streamer is affected. What’s even more alarming in this post is that Twitch says they can’t afford to run the site. explanation below. https://t.co/VFm6ZSvgvX
— Devin (@DevinNash) September 21, 2022
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That doesn’t seem fair
My reward for being loyal to Twitch for 6+ years is a 20% pay cut. 🤡🤡🤡🤡🤡
But hey that’s ok because anyone who has 1-2k+ viewers or more is a millionaire right??? 🤡🤡🤡🤡🤡
— Lacari (@tk_lacari) September 21, 2022