Twitch discusses streamers' revenue divide, but it is refusing to change its 50/50 split

Twitch discusses streamers' revenue divide, but it is refusing to change its 50/50 split

Despite more than 22k votes on its UserVoice platform, Twitch has declined to modify the revenue split for streamers.

The revenue split between Twitch and streamers has long been an issue, with many contending that the current 50/50 split is stifling the growth of smaller channels.

The UserVoice post, which was started by streamer SaltyWyvern in 2020, became the most popular issue on the platform as it requested that Twitch change the revenue split to 70/30 (like main rival YouTube) and this has now been closed by Twitch.

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"We have been shaken apart by the response to this post and have been examining it for the better part of the last year," Twitch says.

"While we are lowering this request, it''s still critical to know that sharing your feedback on UserVoice is a major commitment. While we will not always be able to deliver the desired outcome, we must be transparent and open when we can, and we will be focusing on updating more regularly on UserVoice as soon as possible."

Dan Clancy, Twitch''s president, has published a new blog post about the earnings divide.

Firstly, Twitch is simplifying its revenue split for its most powerful streamers, according to reports from April.

Several streamers have been offered premium subscription terms through standard agreements, something Twitch has not discussed publicly, but has been known in the community for a while.

Clancy admitted in a blog post that "we don''t believe it''s appropriate for those on standard contracts to have varied revenues based on the size of the streamer."

In our next blog post, we discuss a topic that''s been around the community for a long time, including the rev split. We also provide a related update about monetization for a select group of Partners. Read here: https://t.co/zP6xcCtJAQ pic.twitter.com/KAwOMDIkmm Twitch (@Twitch) September 21, 2022 To see this content please enable targeting cookies.

In our latest blog post, we explore a topic that''s been at forefront of the community for a while, the rev split. We also provide a related update on monetization for a subset of Partners. Read here: https://t.co/zP6xcCtJAQ pic.twitter.com/KAwOMDIkmm

This means that, while these streamers will retain a 70/30 split for the first $100k earned through subscription revenue, above this the split will be 50/50. This change will take effect on January 1st June 2023.

It''s clear, therefore, that top streamers will still receive good treatment, even if, as Clancy pointed out, any revenue lost from this new split will likely be made up by ad revenue.

"In an ideal world, all streamers would be on the same set of terms, regardless of their size." However, putting that policy would have a negative impact on the streamers currently on these terms, many of whom were instrumental in helping us build the Twitch we know today. These streamers have grown to depend on the additional income split to maintain their standard of living."

He stated earlier in the post that "we cannot run this service unless you make money. That''s not a drawback, but by design. This innate partnership is why we''re able to support all streamers'' careers and ambitions like they''re our own."

Succeedingly, he addressed the 50/50 revenue divide.

"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 your products and people.

"Products, like Prime Subs, Community Gifting, Hype Train, and the Ads Incentive Program, to name a few, have increased a 27 percent increase in streamer revenue per viewer hour every year in the last five years.

"We must pay attention to the cost of our services." It''s very expensive to deliver high definition, low latency, and always available live video to almost every area of the world.

"Using the published costs from Amazon Web Services'' Interactive Video Service (IVS) - which is basically Twitch video - live video costs for a 100 CCU streamer who runs 200 hours a month are more than $1k per month.

"We don''t usually talk about this because, frankly, you shouldn''t have to think about it. We''d rather you focus on doing what you do best. But, to answer the question of ''why not 70/30,'' ignoring the high costs of delivering the Twitch service would have meant giving you an incomplete answer."

Many streamers have been shocked by this change so far.

@Twitch has just received an update on its revenue split. This particular part of the update they posted is very disappointing. Twitch STILL has the highest revenue, so how do they explain YouTube only taking 30%? pic.twitter.com/QjxsU7TNRN

"When someone asks me why Twitch is the best place to make money as a streamer, my answer begins first and foremost with community." https://t.co/40HzrPKh65 pic.twitter.com/SzZAAAQvvc Brian Gray (@urbanbohemian) September 21, 2022 Please enable targeting cookies.

"When someone asks me why Twitch is the best place to make money as a streamer, my answer starts first and foremost with community." https://t.co/40HzrPKh65 pic.twitter.com/SzZAAAQvc

After several days in a row of being perked for Twitch to hit us with the "yeah we cant afford to pay you more, run more ads" https://t.co/3C3eatNYBC cakejumper (@Itscakejumper) September 21, 2022 Please disable this content.

After several days in a row of being booed for Twitch to confront us with the "yeah we cant afford to pay you more, run more ads," me playing it cool on stream

The news comes after an announcement from Twitch that unlicensed gaming will be prohibited on the platform, as prominent streamers threaten strike action.

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