The modification of the remuneration sharing by Twitch is far from pleasing to all streamers. And could cause the multiplication of ads on the platform.
Troubled times at Twitch. After banning its streamers from sharing content from a list of gambling websites, the platform continues its transformation by removing the special compensation scheme for its biggest content creators. A sudden and unilateral decision that is far from pleasing all concerned.
The remuneration of streamers at Twitch, the basis of the success of the platform
Quite innovative when it was launched and widely imitated since (notably by YouTube and Facebook), Twitch’s subscription system may have even fulfilled more roles than it was intended. On the one hand, it makes it possible to reinforce the interactivity of streamers with their viewers, in particular by offering them certain small advantages, today one of the keys to the success of the platform. But above all, it allows content creators to fully engage in this activity by providing them with income that can be substantial.
Historically, the share of subscriptions ($4.99 per month per person) has always been split 50/50 between the platform and the streamers. Only the biggest of them could negotiate 70/30 partnerships. Dan Clancy, the CEO of Twitch, announced that this second option will no longer exist from the 1er June 2023.
He justifies this choice by explaining that the operating costs of the platform are too high. There is no difficulty in believing indeed, as Clancy explains, that the permanent broadcasting of tens of thousands of video streams in high definition and to the four corners of the world represents a significant cost.
The removed partnership level only concerned 10% of the platform’s content creators, but this brutal and uncoordinated announcement did not fail to make them react. ZeratoR, one of the biggest French streamers, for example explained on Twitter that his company would suddenly lose 20% of its turnover.
A change that may cause the proliferation of ads
In his address to creators, the CEO of Twitch announces two measures to make this change happen smoothly. Firstly, the affected streamers will only see the change imposed from June 2023 and will keep this sharing within the limit of the first €100,000. And second, it announces a new distribution of advertising revenue, more in favor of content creators.
However, as several streamers have pointed out, this decision clearly risks encouraging them to multiply the number of ads they run on their channel. The example of YouTube, which has clearly chosen this policy for several years and now risks losing its dominant position to TikTok, should however encourage Twitch to be cautious.
Source : Twitch Blog, Android Authority
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