The Twitch streaming platform has announced changes to its revenue system that will start next year, as this new update will affect some of the biggest streaming companies. Twitch’s current revenue model runs a 50/50 split between subscribed operators and the platform when dealing with paid subscriptions, while the larger broadcasters get a more generous 70/30 split.
This will change in June 2023, when live streamers will retain 70% of subscription revenue on the first $100,000 earned, with the stake then reverting to a 50/50 split. The new threshold will have an impact on the top 10% of Twitch broadcasters, and one reason for the policy change is due to the increased cost of video hosting according to Blog post From Twitch President Dan Clancy.
“Providing high-definition, low-latency, always-available live video to every corner of the world is costly,” Clancy wrote. “Using published prices from Amazon Web Services’ Interactive Video Service (IVS) — which is essentially Twitch video — the live video costs of a 100 CCU streaming player that streams 200 hours per month is over $1,000 per month. We don’t usually talk about this because Honestly, you shouldn’t even think about it. We’d rather you focus on doing what you do best.”
It’s worth noting that Twitch is owned by Amazon, having acquired it in 2014 for about $970 million in cash. The rest of the Twitch streaming community will remain largely unaffected by this update, who are on standard agreements with premium subscription terms.
Twitch has had a turbulent year so far, losing streaming celebrities like Myth and LilyPichu while also facing an ultimatum from big-name broadcasters like Pokimane, Mizkif and Devin Nash for cracking down on online gambling content. In an update to its partner program last month, Twitch changed its exclusivity agreement and now allows content creators to stream on other platforms.
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