At the end of September, the streaming platform Twitch announced its intention to revise the revenue-sharing system by 2023. The new terms will be unfavorable for so-called “premium” streamers. Such plans caused a wave of anger among users and threats to leave the platform.
Twitch functions and earns money since creative streamers, bloggers, and influencers publish their content on it. Without all these people, there would be no Twitch itself. For many years, Amazon, which owns the service, understood it and rewarded its users with new features, including favorable revenue sharing conditions and free subscriptions to Amazon Prime.
The change began in the summer when Twitch overhauled its ad-based monetization model and began paying streamers for each ad placed on their video (instead of a fixed cost). Now, more global changes are coming. Premium users who received a 70/30 income will be limited. After they earn $100000, they will be automatically switched to the 50/50 model. Besides, Twitch will cut premium revenue-sharing offers. Users can place more ads to offset the potential loss from the scheme change.
It is not difficult to guess that such global changes have caused massive anger among both premium streamers and those who hoped to get into their list. Some major creators threaten owners to leave the platform if the new system does go into effect. Moreover, tech giants like YouTube are ready to become a new home for offended users, as it was before. The Twitch representatives justify their actions with the high cost of video posting. While the service won’t completely eliminate exclusive contracts, it will significantly reduce their number.
Will these changes affect your business? Do you think a revision of the income-sharing system is really necessary?