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Twitch plans to reduce revenue for many popular streamers

Twitch, owned by Amazon is one of the most popular game streaming website on the internet. In a blog post, Twitch recently shared its plans of splitting revenue for many of the popular streamers on the platform. The new revenue policy takes effect on June 1, 2023.

Famous Twitch streamers under special deal typically makes a 70/30 split of revenue off of viewer subscriptions. But now the company is planning to change the split to a more even 50/50. This decision from the streaming company naturally made many streamers understandably infuriated.

Twitch president Dan Clancy explained in a blog post that a “vast majority” of streamers have a 50/50 revenue split for paid subscriptions. Although in the past a group of creators were offered a premium 70/30 split. Twitch plans to maximize its profit by bringing every streamer under the same revenue policy.

Twitch used to offer this extra spit to a group of premium streamers in order to prevent them from streaming on rival platforms.

Twitch clarified in the Blog, premium streamers can still make a 70/30 split for the first $100,000 USD made over a period of 12 months. After first 100k, the revenue will split in 50/50 for the year.

The streaming giant might have shot itself in the foot by announcing the updated revenue split system only a few weeks before TwitchCon. Many of Twitch’s popular streamers are leaving the platform for other alternatives because of this new revenue spit method. For reference, Youtube split the revenue into 70/30 on streamers’ favor for all creators regardless their size.

Twitch tier 1 subscription starts from $4.99. Viewers can support their favorite streamers by subscribing or gifting subscriptions to them.

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