Twitch purposefully scored a win on Tuesday when they banned at least some forms of gambling and gambling partnerships on their platform. But it was clearly a harbinger of worse news revealed on Wednesday as they announced pay cuts for their highest-earning streamers and a lack of improvements for smaller ones.
Twitch announced Wednesday that “premium” creators who received a 70/30 subscription split in their favor will now see that split capped after the first $100,000 in revenue. After that, the split changes to 50/50, which is the default split for non-premium, “regular” Twitch streamers. The changes will not take effect until June 1, 2023 and will not change current Twitch contracts.
Twitch tries to justify this by talking about ad revenue split boosts, but even if it affects the higher elite of streamers, here’s why everyone is mad:
- These top streamers feel they’ve contributed to Twitch’s success (which Twitch even admits in the blog post) and the cuts are likely to propel them towards a rival like YouTube, which has a 70/30 split, once their contracts are up. .
- Non-superstars, regular streamers have hoped the opposite would happen, that the 50/50 split would be increased to 70/30 for everyone, and “taxing” the most successful creators doesn’t help them, because nothing significant changes positive for them.
- This new focus on ads has upset everyone at all levels as ads drive viewers away and have become more frequent and aggressive on Twitch lately. No one is eager to lean more heavily when showing ads to their viewers.
- All of this constantly reminds everyone that Amazon, the trillion dollar megacorp, owns Twitch, so these cuts seem unnecessary. Even without a doubt, the mandate of the top is that Twitch itself must become more profitable and cannot be just subsidized by Amazon.
Twitch, as the leader in the streaming market, may still be in a position to make these changes, citing the cost of video hosting as the reason for doing so, but it’s hard to know what the implications of this will be. may be the long term. If YouTube maintains its 70/30 split, you will no doubt see further and further migration in that direction, although admittedly there have been relatively few competitors in the space since the Mixer collapse and Facebook Gaming struggles to compete with Twitch and YouTube in in general.
It feels like every new Twitch announcement and change is getting worse, and it’s no wonder many are tired of their policies. The headlines are never right, and quite literally, as I write this, Bloomberg just released a comprehensive report on how child predators are using Twitch to track children.
Many of the Twitch streamers most affected by the new split changes are likely still under contract, so we may have to wait a while to see how many of them will leave. But it’s not clear how far Twitch will push an audience, but it’s equally unclear whether a rival like YouTube will also leave the 70/30 split forever alone.
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