Streaming platform Twitch has announced changes to its revenue system starting next year, a new update that will affect some of its biggest streamers. When dealing with paid subscriptions, the current Twitch revenue model is split 50/50 between partner streamers and platforms, with larger streamers getting a more generous 70/30 split.
That will change in June 2023, as streamers will keep 70% of subscription revenue on the first $100,000 earned, and then that share will revert to a 50/50 ratio. The new threshold will affect the top 10% of Twitch streamers, and one of the reasons for the policy change is the increased cost of video hosting. blog post From Twitch President Dan Clancy.
“Providing high-definition, low-latency, always-available live video to nearly every corner of the world is expensive,” Clancy wrote. “The advertised rates for using Amazon Web Services’ Interactive Video Service (IVS) – essentially Twitch video – a 100 CCU streamer for 200 hours of live video per month costs over $1000 per month. We don’t usually talk about this , because frankly, you shouldn’t think about it. We’d rather you focus on doing what you do best.
Notably, Amazon owns Twitch and acquired it in 2014 for about $970 million in cash. The rest of the Twitch streaming community, largely unaffected by this update, have standard agreements with premium subscription terms.
Twitch has had a tumultuous year so far, losing big-name streamers like Myth and LilyPichu, while also facing ultimatums from big-name streamers like Pokimane, Mizkif and Devin Nash to crack down on online gambling content. In an update to its partner program last month, Twitch changed its exclusivity deal and now allows content creators to stream on other platforms.
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