Twitch confirms June 2023 update in subscription revenue shares

The popular streaming platform, Twitch, is reducing the revenue split for streamers from 70/30 to 50/50 starting in June 2023!

Twitch always used a baseline revenue share of 50/50 regarding the net earnings revenue. This means streamers will have 50 percent of their savings for themselves while the latter goes to Twitch. However, Twitch offered premium subscription terms with their biggest streamers with a 70/30 revenue split (70 percent for the streamers while 30 percent for Twitch).

“For these streamers still on these premium deals, we’re adjusting the deal so that they retain their 70/30 revenue share split for the first $100K earned through subscription revenue. Revenue above $100K will be split at the standard 50/50 share split. We’re announcing this change now, but it won’t go into effect until after June 1, 2023.”

Dan Clancy, President of Twitch Interactive, Inc.

The streamer’s yearly agreement renewal date will serve as the starting point for the $100,000 threshold calculation over a 12-month-period. Samantha Faught, Twitch’s head of communications, said that “The threshold is said to reset on the first day of the subsequent 12-month period, and each 12-month period thereafter”

The reasons for these changes regarding premium deals are Twitch has not been transparent about the value, and they were not consistent in their criteria for choosing streamers. The cost of their service is also a factor. Clancy stated, “Delivering high definition, low latency, always available live video to nearly every corner of the world is expensive. Using the published rates from Amazon Web Services’ Interactive Video Service (IVS), which is essentially Twitch video, live video costs for a 100 CCU streamer who streams 200 hours a month is more than $1000 per month.”

Clancy also said that almost 90% of streamers would not be affected, given their current revenue. However, for those affected, an increase in ads revenue share is given to a 55/45 split in revenue to make up for most of the lost revenue.

Despite Twitch’s current change in their split for revenues, Clancy still believes that Twitch is the best place to make money as a streamer. Furthermore, the community of Twitch is “real and tangible,” from sending chat memes to TwitchCon meetups.

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