Twitch Has a Money Problem, And It Involves You
October 19, 2022
Whether you’re an experienced streamer, a new content creator, or an avid Twitch viewer, the streaming site’s 50/50 revenue split announcement is a problem for everyone. Twitch wants to cut their most popular streamers’ 70/30 revenue split deals because, according to their President, “delivering high definition, low latency, always available live video to nearly every corner of the world is expensive.” With Twitch generating $2.6 billion dollars in revenue in 2021, a lot of creators on the platform feel disrespected that Twitch denied a 2020 petition (with over 22,000 votes) to provide all of its streamers the 70/30 deal. Moreover, Twitch has announced that this money will be used to increase their focus on ads.
So what does this mean for you? Well, for streamers with premium deals (the old 70/30 revenue split), it means you have until your contract is up before you switch back to the old model - however, the new model will allow you up to $100k with a 70/30 deal, and after that, all revenue will be split down the middle to 50/50. New streamers will never have the opportunity to make more than 50% of the revenue they generate for Twitch. This is where the opportunity for third-party sites and tools begins to become apparent, as the ability to create more engaging content and get paid more for the revenue you generate is a major attraction.
For Twitch viewers, this new rule greatly affects you as you are going to begin to see more ads appear on Twitch. You’ll have to pay to subscribe to your favorite creators if you don’t want to be bombarded with ads, and you’ll do so knowing that your favorite streamers are only receiving 50% of what you paid to support them.
Twitch cites that with their already-available tools to help streamers grow, there’s really no reason for them to move to a 70/30 model for everyone. These tools include: Prime Subs, Community Gifting, Hype Train, and the Ads Incentive Program. I don’t know about you, but I get a little nervous when a “Hype Train” is one of the only dependable ways that streamers can grow on Twitch’s platform, especially since they will be removing the hosting feature.
Twitch is making it clear to its creators that their focus is on generating more revenue for themselves, and helping streamers grow is not one of their biggest focuses at the moment. The ability to create organic, engaging content and grow quickly on Twitch is quickly fading away, and the world of arbitrary algorithms and fan favoritism looks like it is here to stay.
If you’ve made it this far, please take a moment to check out Tangia, our all-in-one monetization platform for streamers that combines in-game engagement with meaningful interactions to create a system that makes you more money from doing what you love. Not only can you make upwards of 90% of all the revenue you generate using Tangia subscriptions, but it is completely free to use, and our team thrives on the feedback you leave for us. If you want to talk more about the new Twitch rules or have questions about Tangia, send me an email at email@example.com.