Mere hours after announcing certain types of gambling streams would be banned on Twitch, the company took to its blog to reveal a change in revenue policies. The subscription revenue changes are aimed at Twitch streamers currently on controversial premium 70/30 revenue split contracts but the company is adamant that only 10% of premium streamers will be affected by the changes.
How the Twitch revenue changes will affect streaming income
The vast majority of Twitch streamers receive a 50/50 revenue split from subscriptions to their channel. These streamers will not see any changes to their revenue terms. However, premium 70/30 revenue split contracts were offered to certain Twitch streamers. With inconsistencies in the way these contracts were offered to streamers, Twitch has faced accusations of favoritism and calls for all streamers to be placed on the premium contracts. The problem is that placing everybody on these contracts would mean the streaming platform would no longer be financially viable. To make things fairer, no more premium contracts will be offered to streamers in the future. Meanwhile, streamers currently on premium contracts will not have them removed but will face some changes.
Beginning June 1, 2023, premium streamers will receive a 70/30 revenue split for the first $100K they earn through all subscriptions in a year. For subscription revenue that exceeds this, streamers will now only receive a 50/50 split for Tier 1 subscriptions, 60/40 for Tier 2 subscriptions, and 70/30 for Tier 3 subscriptions. Twitch estimates only 10% of streamers will be affected by this, and those that are have been told to look at other methods like the Ads Incentive Program to recoup their losses.
Understandably, many are disappointed and upset with the upcoming changes. Instead of feeling like this is a fairer policy, many are accusing the company of trying to take more revenue from more popular streamers instead. Others are accusing Twitch of trying to recoup some of their impending income loss from the recent ban on the streaming of gambling sites that feature unlicensed slots, roulette, or dice games, changes that will take effect next month. Let us know what you think about the changes in the comments below!
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