Twitch, the popular streaming site, is set to implement a new change in its revenue-sharing model, aiming to benefit a broader range of content creators.
In a recent announcement, Twitch unveiled its Twitch Plus program, scheduled to commence in May, which promises to increase the earnings for streamers with over 100 paid subscribers from the current 50/50 split to a more lucrative 60% share.
This move comes on the heels of a broader restructuring within the company, where its parent firm Amazon recently announced the elimination of over 500 Twitch employees, constituting a third of the workforce.
Despite Twitch CEO Dan Clancy revealing that the platform paid out $1 billion to streamers in 2023, he acknowledged the site’s struggle to achieve profitability during a live stream.
The Twitch Plus program is expected to extend improved revenue shares to approximately three times as many streamers, providing a transparent and long-term framework for compensating creators committed to live streaming.
The 70/30 revenue split for more popular users with over 350 paid subscribers, previously introduced in June 2023 as part of the “Partner Plus” program, will remain unchanged.
However, one alteration in the new system will involve eliminating the previous threshold where top earners experienced a drop in their revenue split from 70/30 to 50/50 after reaching $100,000.
This change aims to retain high-performing streamers and address concerns about Twitch’s competitiveness in light of rising platforms like Kick, which offers a substantial 95% share of revenue to streamers.
In the context of growing competition, Twitch appears to be adapting to industry dynamics, especially considering the recent moves by other platforms. Rival platform Kick has successfully attracted renowned streamers with its generous revenue-sharing model, securing names like Amouranth and xQc in 2023.
Meanwhile, YouTube offers a 70% revenue share to YouTubers from their subscriptions but retains a 30% cut from fan donations, unlike Twitch, which directs all donations to streamers.
These changes by Twitch align with a broader trend in the streaming industry, where platforms are striving to create more attractive conditions for content creators.
The announcement also coincides with efforts by other social media platforms, such as X (formerly Twitter), to entice content creators by offering a substantial share of advertising revenue.
Despite these developments, Twitch faces the challenge of balancing its revenue-sharing model with the competitive industry and evolving expectations of the content creator community.