Twitch Alters Rules for Streamers Eligible to Earn Income
Let's dive into the twisted, intricate world of Twitch's updated revenue-sharing system – a messy mix of simplicity and tangled complexities.
In a recent shift by Twitch, the Amazon-owned streaming colossus is offering a taste of the revenue pie to even lower-tier streamers, but it raises questions about whether these creators can expect to see an increase or decrease in their subscription earnings over time, especially when they're no longer raking in as much from Amazon Prime Gaming subscription tokens.
Twitch CEO Dan Clancy dropped a bomb in a blog post on a Wednesday, with ominous undertones of a more "transparent" and "sustainable" long-term approach. This means a slew of streamers will now have a shot at cashing in on some cash for their efforts. Starting in May, Twitch is opening its Partner Plus revenue-sharing program to Affiliates, along with Partners. While Partners need a massive following of 1,000 followers and 25 hours of streaming on 12 unique channels in a month, the less popular Affiliates just need 50 followers and eight hours of streaming on seven different days.
To celebrate this change, Twitch is now calling the Partner Plus program simply the "Plus Program." This move makes way for more revenue-sharing options for hundreds of thousands of streamers who aren't household names but still have a chunk of followers. However, these affiliates can't expect big money from a handful of subscriptions as they're limited to a 60% share of paid and gift subscriptions to their channel, compared to the superior 70/30 split of partners.
Remember when Twitch introduced the fabulous $100,000 cap on who could claim the 70/30 revenue-sharing split from subscriptions? Well, that's gone now, thanks to streamers crying foul about it limiting their earnings. There's still a minimum threshold to access the better revenue share, but the required number of "Plus Points" – earned from recurring paid subs each month – is now reduced from 350 to 300.
Additionally, any streamer who maintains 100 Plus Points for three months in a row can access the 60/40 split on paid and gift subs. That sounds fantastic, but Twitch has a few tricks up its sleeve to limit revenue for major streamers or those who raked in some dough from Amazon Prime members.
The program that grants monthly subscription tokens to Prime members is changing by June 3. Instead of getting paid as a percentage from those subs, streamers will now receive a fixed rate payment for every time a viewer uses a token to subscribe. The fixed payment depends on the country and the streamer's earnings, ranging from $2.25 in the U.S. to as low as $0.40 in some countries like Russia.
Twitch CEO Dan Clancy is trying to calm down dissenting streamers, assuring them this change won't make a huge impact on most streamers, with only a 5% decrease for those using Prime Gaming sub tokens. But, of course, creators on Twitch will have to wait and see if any of these changes offset any lost revenue.
"For some of these streamers, eliminating the $100K cap will offset the impact, but this won't be true for all streamers," Clancy wrote.
Twitch, under fire lately, especially with a workforce chopped in half, laid off a whopping 35% of its global staff earlier this month – around 500 employees. The company had already dropped 400 employees last March, shortly after Clancy took on his CEO position. These changes to revenue sharing seem less about recouping lost funds and more about navigating the difficult 2024 that lies ahead for the streaming platform. We'll have to wait and see how else Twitch plans to tweak its bewildering business model.
- The recent changes in Twitch's revenue-sharing system, as outlined by CEO Dan Clancy in a blog post, aim to offer more streamers a share of the revenue, including those in the Affiliate tier.
- Starting in May, Twitch will extend its Partner Plus revenue-sharing program to Affiliates, giving them the opportunity to earn a share of paid and gift subscriptions, albeit a smaller 60% compared to Partners' 70%.
- In a move to be more transparent and sustainable, Twitch has lifted the $100,000 cap on who can claim the 70/30 revenue-sharing split from subscriptions, but a minimum threshold of 300 Plus Points is still required to access it.
- As for the Amazon Prime Gaming subscription tokens, Twitch will switch from a percentage-based payment to a fixed rate payment per subscription made with these tokens, with the payment amount depending on the country and the streamer's earnings. This change is set to take effect by June 3.
