In the middle of the night, Twitch released what it described as a message from Dan Clancy, the head of Twitch, and that was basically all bad news for streaming platforms of any size on the platform. Ostensibly, the speech is about splitting the revenue share for subscriptions on Twitch, but both reject the community’s request to change the split to be more convenient for everyone while lowering the better rate that some of the big streamers had.
Basically, most Twitch players get a 50/50 revenue share for subscriptions, while some premium deals have previously been brokered with some streamers – usually bigger ones – splitting the revenue share 70/30. However, the latter is changing dramatically.
“For those still working on these premium deals, we’re adjusting the deal so they’re keeping a 70/30 split of their revenue share against the first $100,000 earned through subscription revenue,” Clancy says. in the message. “Revenue over $100,000 will be split at the standard 50/50 stock split. We’re announcing this change now, but it won’t take effect until after June 1, 2023. After that point, live streamers will be affected at once. Only their current contract is under renewal. All broadcasters have already received this information and more via email, and we will be sure to provide them with updates and exact schedules as we approach June 1, 2023.”
In our most recent blog post, we tackled a topic that has been at the forefront of the community for some time – velocity rate splitting.
We also provide a related update on monetization for a subset of partners.
I read here: https://t.co/zP6xcCtJAQ pic.twitter.com/KAwOMDIkmm
Twitch September 21 2022
The discourse deals in part and rejects a The popular UserVoice post started in 2020 with over 22,000 votes Asking 70/30 to be the new normal. For those who aren’t currently involved in some sort of premium deal, the post attempts to answer why the 70/30 subscription revenue share isn’t split in part by noting that there are more ways for Twitch users to make more money than ever before. It goes on to claim that Twitch’s cost of providing the service is high.
“Providing high-definition, low-latency live video that’s always available to every corner of the world is expensive,” says Clancy. “Using published prices from Amazon Web Services’ Interactive Video Service (IVS) — which is essentially Twitch video — the live video costs of a 100 CCU streaming player that streams 200 hours per month is over $1,000 per month. We don’t usually talk about this because, frankly You don’t have to think about it. We’d rather focus on doing what you do best. But to fully answer the question “Why not 70/30″, ignoring the high cost of delivering a Twitch service would have meant giving you an incomplete answer.”
What do you think of the update on Twitch’s subscription revenue share split? Do you think there will be more people leaving Twitch for other deals? Tell us in the comments, or feel free to reach out to me and hit me up right on Twitter at Tweet embed In order to talk about all things gaming!
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