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Twitch changes revenue sharing on its platform: what will it change?


Twitch is playing Jean-Pierre Foucault, but with this 50/50, it will be difficult to earn millions. In a blog post, Dan Clancy, Twitch President and Chief Operating Officer, spoke about a change to subscription revenue sharing, which will take effect June 1, 2023. If the majority of streamers are d Already subject to a 50/50 sharing of net income from subscriptions, a small minority had the privilege of obtaining an agreement with the platform. Not really public, but known in the industry, these agreements allowed the most popular videographers to receive a larger share of subscriptions, up to 70/30. For Dan Clancy, it was not fair that these “Standard agreements offer variable revenue sharing based on the popularity of the streamer.

However, these stalwarts of the platform are still doing well, as Twitch is keeping the split at 70/30, but capping it at $100,000 per year. Beyond that, equitable sharing will be established. In addition, Dan Clancy invites streamers who want to make up for their losses to use the Ad Benefits Program, which consists of running a certain amount of ads per hour and getting 55% of the revenue they generate. Twitch justifies this choice by the increase in average revenue per broadcast hour. According to the company’s calculations, one hour of viewing now earns the videographer three times more than 5 years ago. Added to this is the cost of the broadcasting service: if the platform is hosted on the servers of its parent company, Amazon, a streamer broadcasting 200 hours a month in front of 100 simultaneous viewers costs $1,000 per month, according to the rates published by Amazon Interactive Video Service.

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Concretely, this change concerns only an “elite” of the platform. In France, for example, if we refer to the income revealed during a data hack perpetrated last year, only around fifty streamers earned more than $100,000 a year at the time. But among the main stakeholders, the pill is still struggling to pass, while others relativize with humor.

What are the implications for viewers?

This change on the creators’ side is also likely to impact the viewer experience. With a 50/50 levy on subscriptions, streamers will certainly increasingly turn to the advertising program put in place by Twitch. The platform automatically broadcasts advertisements during broadcasts, but allows videographers to control them and receive a portion of the revenue generated. It is therefore to be feared that the broadcast streams will be interspersed with numerous advertisements, sometimes up to five minutes in a row. And although today Twitch seems to have no serious competition offering videographers the choice of migrating elsewhere, the other video giant, YouTube, could have a hand in the live-streaming battle.

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