Twitch plans to cut subscription revenue for some top streamers by pushing ads • CableFree TV

Published by
Peter Kavinsky

twitch plans to standardize its revenue-sharing agreement with streamers by changing the revenue structure for top creators, who have historically been able to earn most of the money they generate through paid subscriptions to the platform.

AT Blog Post On Wednesday, Twitch president Dan Clancy explained that while the “vast majority” of streamers have a 50/50 split of paid subscription revenues, some creators have been offered premium subscription terms in the past that cut them off from a better 70/30 deal. . Twitch subscriptions start at $4.99 per month, offering viewers the opportunity to support their favorite streamers in exchange for special access and perks.

“We haven’t talked about it publicly, but such deals are common knowledge in the streamer community,” Clancy said. Apparently, Twitch didn’t have hard and fast criteria to determine who got the best revenue split. Clancy said the company stopped bringing new streamers into the deal over a year ago, but anyone with better terms should be keeping them for a while.

The company noted that more than 22,000 streamers on its feedback forum have asked the platform to move all creators to a 70/30 subscription split, but that won’t happen.

“Thinking about how we handled these premium deals, we uncovered a few issues,” Clancy wrote. “Firstly, we did not report the existence of such transactions. Secondly, we weren’t consistent with the qualifying criteria and they tended to go to the bigger streamers. Finally, we don’t think it’s right for those with standard contracts to have a different share of income depending on the size of the streamer.”

Clancy says ideally “all streamers should use the same set of terms, regardless of size,” but a direct change in terms would disproportionately hit some of the core Twitch streamers who helped make the platform what it is today.

For now, the solution Twitch has come up with is to let streamers with a premium deal keep 70% of their first $100,000. After that, they will default back to a 50/50 revenue split with no premium. The changes will take effect after June 2023, but only when the streamer’s contract is eligible for renewal.

“For those affected, we wanted to make sure the impact was minimal — not only by giving them enough time before the deal goes live, but also by offering an alternative way to generate income,” Clancy said.

This alternative Twitch Ad Revenue Program. In June, the company announced that it would move from a fixed pay per 1,000 ad impression model to a “percentage-based revenue share model” that gives streamers 55% of the revenue for every ad they place. Twitch claimed that the ad payout change will eventually net most streamers between 50% and 150% more for the ads they show in the stream. At the time, the company announced that the change wouldn’t just affect Twitch partners — streamers in the lower-tier Twitch affiliate program would also be offered 55%.

In August, Twitch removed exclusivity requirements for Twitch Partners, the creator level, which unlocks the full set of monetization tools on the platform. This change allows top creators to also make money from competing services like YouTube, but still prevents them from streaming full streams to most social apps at the same time. Change can help Twitch keeps its best talent on the platformespecially with the upcoming revenue changes, although YouTube’s own 70/30 subscription revenue distribution looks more attractive given the changes.

If all this sounds fair, things might not be that simple. Despite the desire for uniformity and transparency, Twitch still found some wiggle room to negotiate with top streamers who are unlikely to be happy with their subscription revenue dropping by 20% in the long run, even with changes in revenue from advertising.

“The reality of our business is that, on rare occasions, we will continue to negotiate individual agreements on a case-by-case basis,” Clancy wrote. “However, we are reducing the frequency of offering these deals and the overall cost of these deals.”

Peter Kavinsky

Peter Kavinsky is the Executive Editor at cablefreetv.org

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