Twitch is —along with YouTube— without a doubt one of the most relevant platforms for creators, but today the CEO of the company, Dan Clancy, has given them bad news: commissions for subscriptions, the famous ‘split’ that distributed income , change.
we need more money. Clancy explained how streamers “are and always will be the foundation of our global community”, but also made something very clear: “we cannot maintain this service if you do not generate income”.
The split was (for some) 70/30. For a while, Clancy explains, they offered “premium subscription terms” to some streamers to grow their communities. Apparently these agreements were not publicly known, but within the community. There was no uniform structure, but the advantage was clear: in those deals the revenue split was 70% for creators and 30% for Twitch. For many other streamers the split was 50/50.
Now it will be 50/50 if they win more than 100,000 dollars. Those who benefited from that ‘split’ of 70/30 will no longer always do so. Clancy explained that the 70/30 ratio will be maintained for the first $100,000 they earn, but it will be split 50/50 thereafter. This measure will come into force on June 1, 2023, and from then on the streamers will be affected when their contract has to be renewed.
It will affect few, but those few are the great streamers. The measure, he explains, “will not affect the income currently obtained by around 90% of streamers.” On Twitch they affirm that there will be compensation thanks to the increase in commission for advertisements, and also comment that there will be negotiations “in exceptional cases”. Those 10% of affected users, however, are logically the most important on Twitch, and although here it seems clear (and even logical) that “those who earn the most will be the ones who pay the most” the debate is served and it will be interesting to see the impact among those streamers.
Everything (on Amazon) goes up. The announcement is generating the expected criticism – for example in the replies on twitter— and it is a controversial movement of price increases that we are seeing in many other segments. It’s interesting that this reduction in commissions on Twitch came shortly after Amazon, which owns Twitch, raised the price of your Amazon Prime subscription.