Twitch to standardize 50/50 revenue split with streamers

Twitch 50/50 Revenue Split

The live streaming website is decommissioning its best-paying 70/30 revenue split in favor of its 50/50 split. The move was confirmed by Twitch.

A recent blog post of the Twitch website has made a final decision to abolish the 70/30 revenue split among its streamers, despite the December 2020 petition that garnered 22,723 votes. The petition was shared by SaltyWyvern. It discussed the discrepancy in the revenue split between the platform among their competition, like YouTube and Facebook.

“When we first established a 50/50 revenue share split, it was to signal that we’re in this together. You all do the amazing work you do to create great content, engage with your audience, and grow communities. On our side of the partnership, it’s our responsibility to make continuous investments in the products and people that make your growth possible.

Dan Clancy, Twitch President

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Twitch Logo
Credit: Twitch

The specifics of the 50/50 and 70/30 revenue split

It is known to the public that the company’s most common revenue agreement among its streamers is the 50/50 split. However, some of their top streamers have been granted a more profitable revenue agreement with a 70/30 split. These are known as “premium deals” that the company has previously given to their select top streamers.

As the Amazon subsidiary continues to push for the 50/50 revenue split, streamers who were previously granted the 70/30 deal are likely to see a sizeable drop in their revenue in the foreseeable future.

There are certain conditions set for this move. For one, the change in the revenue split will not happen until June 1, 2023. Second, to that is the revenue cap of USD 100,000. Only after reaching that amount of subscription revenue, will the streamer’s revenue as updated to the 50/50 split.

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Twitch phone used in twitch data leaks piece
Credit: Twitch

Why Twitch prefers the 50/50 over the 70/30 revenue split

According to the same blog post, Clancy addressed that Twitch is gearing to the 70/30 revenue split because of the amount of money the company has invested in the products and services that lead to the thriving success of streamers. “Products like Prime Subs, Community Gifting, Hype Train, and the Ads Incentive Program, to name a few, have driven an increase of 27% more streamer revenue per viewer hour every year over the last five years. This means the same viewer hour now earns you three times more money than it did five years ago, on average.” Clancy adds.

The blog post also tackled the position of the company when it comes to the benefits that streamers get when it comes to Prime Subs versus regular subscriptions. It was mentioned that “we (Twitch) pay streamers the same amount they’d receive for a regular subscription even though it is included as an added benefit of their Prime subscription.”

The reasons that the company’s president cited ended with the cost of their service for the streamers. “Delivering high definition, low latency, always available live video to nearly every corner of the world is expensive.” Clancy concludes it by saying “…to fully answer the question of “why not 70/30,” ignoring the high cost of delivering the Twitch service would have meant giving you an incomplete answer.”

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Credit: Twitch

The future of the streamers and viewers

This, of course, was met with a string of complaints from the streamers of the platform. It is ironic as the first statement on the blog post mentioned “Streamers are and always will be the foundation of our global community.

Twitch has been in the hot seat for the past few months, from concerns about online gambling on the website to the deeply upsetting reports of child predators allegedly using the website.

The repercussions of these events may have some impact on the future of TwitchCon 2022.

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