Twitch has announced a reduction in revenue sharing from subs (subscriptions) within the live streaming service. In a statement published on the official website, Don Clancy, president of the platform, explained how the changes in streamers’ billing will work going forward. Such changes, however, will not take effect until July 1, 2023.
Twitch announces reduction in subs revenue sharing – Photo: Disclosure / Twitch
The statement reports a meeting with a small group of Twitch content creators, in which it was clarified that there will be changes to the terms of their contracts.
One of the main news is that, when the streamer exceeds the collection of US$ 100 thousand (equivalent to about R$ 500 thousand at the current price) of the revenue quota with subs, the distribution of this amount will be 50% for the professional and 50% for the platform.
Regarding the first US$ 100,000 obtained from subscriptions to the channel, the division will continue to be 70% for the content creator and 30% for the platform, as it is currently for all cases, in any revenue range.
Check out what the terms of revenue quotas will look like:
- Twitch will continue to offer 70% of the subscription revenue share for all subscription tiers, up to a maximum annual subscription revenue cap of $100K;
- For enrollment revenue above US$100,000, the revenue quota sub-fee will be the standard partner rate of 50% for Tier 1 Enrollments, 60% for Tier 2 Enrollments, and 70% for Tier 3 Enrollment for the remainder of the 12 months.
- The $100,000 limit will be calculated over the 12 month period starting from the annual contract renewal date. The $100K threshold will reset on the first day of the subsequent 12-month period and every 12-month period thereafter.
- Once the change is implemented, progress towards the $100K cap will be trackable in the creator dashboard.
- The $100K revenue on subscription cap applies to all subscription earnings, including Prime subscriptions, and will not impact any other revenue shared with the creator (Ads, Bits, etc.).
Another information explained by Twitch is about the Ads Incentive Program (ads during the lives). The feature has received an increase in ad revenue share to up to 55% of net ad revenue, for content creators to run commercials within a certain range of streams on the platform.
Streamers will only be affected once their existing contract is about to be renewed. Twitch also said it will make sure to inform content creators of updates and exact deadlines as the date of the platform’s new revenue sharing policy is approached.
In addition, Twitch took advantage of the announcement to comment on the biggest change ever made to the platform’s payments, cutting the payment threshold in half – from $100 to $50.00.
It was also pointed out that the investments made by the platform brought positive results in revenue, reaching a 27% increase in streamers’ earnings per hour of viewer per year in the last five years.
As for the amounts for subscribing through Prime, Twitch pointed out that the amount paid is the same as a streamer would receive for a regular subscription. According to the company, the service, combined with other monetization products, has increased its effective quota from approximately 15% to approximately 65% in total. This number varies depending on the streamer’s size and location, but the subscription revenue share does not represent the streamers’ total revenue shares.