Streaming platform Twitch has announced changes to its revenue system that will kick in starting next year, with this new update affecting some of its biggest streamers. The current Twitch model for revenue works on a 50/50 split between partnered streamers and the platform when dealing with paid subscriptions, while bigger streamers get a more generous 70/30 split.
This will change in June 2023, as streamers will get to keep 70% of the subscription revenue on the first $100,000 earned, and the share will then revert to a 50/50 split. The new threshold will have an impact on Twitch’s top 10% of streamers, and one of the reasons for the policy change is due to an increased cost in video hosting according to a blog post from Twitch president Dan Clancy.
In our latest blog post, we tackle a topic that’s been at the forefront of the community for some time – the rev split.
We also provide a related update around monetization for a subset of Partners.
Read here: https://t.co/zP6xcCtJAQ pic.twitter.com/KAwOMDIkmm
— Twitch (@Twitch) September 21, 2022
“Delivering high definition, low latency, always available live video to nearly every corner of the world is expensive,” Clancy wrote. “Using the published rates from Amazon Web Services’ Interactive Video Service (IVS)–which is essentially Twitch video–live video costs for a 100 CCU streamer who streams 200 hours a month are more than $1000 per month. We don’t typically talk about this because, frankly, you shouldn’t have to think about it. We’d rather you focus on doing what you do best.”