Twitch Adjusts Revenue Sharing Model for Top Streamers

In a recent announcement, Twitch revealed plans to modify its revenue split for select streamers, effective next year. According to Twitch President Dan Clancy, the platform typically offers a 50/50 revenue split to its streamers, but has also maintained a 'premium' tier with a more favorable 70/30 split for certain partnered streamers. However, the company ceased offering these premium agreements over a year ago, citing a lack of transparency and inconsistent eligibility criteria. For streamers currently under these premium agreements, they will continue to receive the 70/30 revenue split on their first $100,000 in annual earnings, starting from June 1, 2023, and then revert to the standard 50/50 split thereafter. Clancy noted that 90% of streamers with standard agreements and premium subscription terms do not earn enough to be affected by this change. Additionally, Twitch is encouraging streamers to explore advertising revenue through its Ads Incentive Program, which offers incentives such as $500 for streaming 40 hours a month and running 4 minutes of ads per hour. Clancy emphasized that the recent increase in ad revenue share to 55% can help larger streamers offset the reduction in their subscription-based revenue. The decision was also justified by highlighting the costs associated with streaming video, with Amazon, Twitch's parent company, charging external parties $1,000 for 200 hours of live-streamed video to 100,000 concurrent users per month.