Streaming platform Twitch has announced changes to its revenue system that will take effect from next year, with the new update affecting some of its biggest streamers. Twitch’s current revenue model operates on a 50/50 split between partner streamers and the platform when it comes to paid subscriptions, while heavy streamers get a more generous 70/30 split.
This will change in June 2023, as streamers will be able to keep 70% of subscription revenue on the first $100,000 earned, and the share will then revert to a 50/50 split. The new threshold will impact the top 10% of Twitch streamers, and one of the reasons for the policy change is due to an increase in the cost of video hosting, according to a blog post by Twitch President Dan Clancy.
“Delivering high-definition, low-latency, always-on live video to almost any corner of the world is expensive,” Clancy wrote. “Using published rates for Amazon Web Services’ Interactive Video Service (IVS) – which is essentially Twitch video – the live video costs for a 100 CCU streamer streaming 200 hours per month is over 1000 $ per month usually talk about it because, frankly, you shouldn’t have to think about it, we’d rather you focus on what you do best.
It should be noted that Amazon owns Twitch, having acquired it in 2014 for around $970 million in cash. The rest of the Twitch streaming community will be largely unaffected by this update, which has standard deals with premium subscription terms.
Twitch has had a rocky year so far, losing big-name streamers like Myth and LilyPichu while facing an ultimatum from big-name streamers like Pokimane, Mizkif, and Devin Nash to crack down on online gaming content. In an update to its partner program last month, Twitch changed its exclusivity agreement and now allows content creators to stream on other platforms.
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