Twitch will be reducing its premium 70/30 revenue split for some streamers come June 2023. As it stands, some streamers get access to this more favourable revenue split because they "were instrumental in helping us build the Twitch we know today," but that's set to change going forward.
In a letter from Twitch president Dan Clancy shared on the company's blog page, he explains the reasoning for this change and some context behind the exclusive contracts.
Firstly, it should be noted that this change is only going to affect streamers already on the 70/30 subscription revenue split, and only once their earned revenue surpasses $100,000. So, once a streamer gets $100,000 in their account, any extra revenue from subscriptions will be at the lower 50/50 split, which is the site's standard.
Clancy explains that it costs a lot of money to host video streaming services on Twitch. "Live video costs for a 100 CCU streamer who streams 200 hours a month are more than $1000 per month," He says.
This was included under the Why not 70/30? subheading of the letter, indicating it as a reason for moving those on 70/30 splits to this new version. Clancy also states that Twitch will still sometimes offer select streamers bespoke contracts with favourable rates, but that the team "have been reducing how often we offer these deals and the total value of these deals."
News of this future pay cut of revenue above $100,000 comes amid a period of intense Twitch drama. Gambling streamer Silker scammed followers and streamers out of $200,000, Twitch is banning unlicensed gambling sites soon, and Trainwreck has accused Mizkif of covering up sexual assault and also been spotted paying Twitch staff large sums of crypto.
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