Twitch ‘s latest move may not be entirely to the liking of more than one streamer . The live platform has been making changes for some time in terms of how its creators monetize. The most recent change we have known this week. Twitch will pay the big streamers less starting next year, as they have hit the foundation that supports the entire system: subscriptions. Do you stream on Twitch? Let’s talk about whether or not this new measure will affect you.
Twitch ends special agreements
Starting in June 2023 , all Twitch contributors will be paid the same way. Until now, the vast majority of streamers charged 50% of the price of subscriptions to their channel. However, the company had made agreements with the most important streamers to retain them with better commissions.
Large Twitch channels like Ibai or AuronPlay could aim for a 70/30 split of subscriptions . However, this way of dividing the cake will end next summer, as Twitch will eliminate special agreements and everyone will charge 50%.
Twitch knows that it is attacking the hand that fed it, that is, those who put the platform where it is today. For that reason, the company says it will keep the 70/30 split, but only for the first $100,000 earned per year. From there, the distribution will become 50/50.
Twitch is justified with the costs of the service
On paper, Twitch says that they do all this so that all their users have the same opportunities . An argument that can be quickly knocked down, because if they want equality, they could give everyone the 70% distribution.
To a certain extent, these changes are nothing more than a way to get more of a slice now that the price of money does nothing but fall. In case any more justification was missing, Dan Clancy has also talked about the costs associated with streaming. As he says, maintaining a quality service with good resolution and low latency like Twitch is not cheap. Apparently, it costs about $1,000 a month for every 200 hours of streaming a content creator does.
What can be read between the lines with these words from Dan Clancy is that Amazon Web Services’ own fees are a hindrance for Twitch.
Will the platform creators move?
On paper, keeping 70% of subscriptions for the first $100,000 may seem like a good deal. On the other hand, it must be recognized that many Twitch channels have many associated expenses , so it is not surprising that, starting next year, many will flock to the arms of YouTube.
Twitch wants its streamers to not rely solely on subscriptions. The big ones will have to pull advertisements and sponsorships to continue maintaining their level. Time will tell whether or not this is a good decision for the company.
