In a recent blog post, Twitch CEO Dan Clancy unveiled significant changes to the platform’s monetization structure, aiming to establish a more sustainable system. These changes include adjustments to revenue splits, program expansions, and alterations to the popular Twitch Prime Gaming subscription.
Twitch is eliminating the $100,000 cap on its 70/30 revenue split for the highest-earning creators. Previously, streamers earning beyond $100,000 faced a reduction in their revenue split to 50/50. According to Clancy, the removal of this cap is intended to eliminate disincentives for top earners, who often play a crucial role in the platform’s success.
“We are removing the US$100K cap on net revenue at the 70/30 revenue share level for all streamers, including those in the Partner Plus Program, effective immediately,” the blog post stated.
Twitch is revamping its Partner Plus program, introducing the Plus Program. This initiative, effective from May, introduces a new revenue split tier of 60/40, expands eligibility to affiliates, and adjusts thresholds for participation. Creators will now accumulate points based on subscription tiers, leading to more opportunities for diverse revenue shares.
| Subscription Tier | Price (USD) | Points |
|---|---|---|
| Tier 1 | $4.99 | 1 |
| Tier 2 | $9.99 | 2 |
| Tier 3 | $24.99 | 6 |
This overhaul is expected to triple the number of creators who can benefit from specialized revenue splits, offering a more inclusive approach to monetization.
Twitch Prime Gaming, a popular perk for Amazon Prime or Prime Video subscribers, is undergoing a transformation in its subscription payouts. The current variable rate, where creators receive a percentage of the subscription value, will shift to a fixed rate based on the subscriber’s country, starting from June 3rd.
“While any decrease will feel disappointing, the difference between what streamers receive today for a Prime Gaming subscription and what they will receive after the change to fixed rates is less than 5 percent in the vast majority of countries,” explained Clancy.
The move aims to ensure the long-term sustainability of the monthly Twitch subscription available to Prime members. However, the alteration may result in a pay cut for streamers who heavily rely on Twitch Prime subscriptions.
Twitch has faced financial challenges, leading to layoffs and the departure of some top executives. In a livestream following the announcement of layoffs, CEO Dan Clancy emphasized the necessity of changes to keep the company healthy.
“We believe this is the right structure for the program going forward and are making this change to ensure that the monthly Twitch subscription available to Prime members is a long-term, sustainable benefit for the Twitch community.”
As the platform navigates these monetization adjustments, streamers will closely monitor the impact on their earnings and weigh the benefits of the expanded Plus Program against potential setbacks from changes to Prime Gaming subscription payouts. The South African Twitch community, like its global counterparts, awaits the outcomes of these changes, contemplating the broader implications for content creators and the streaming landscape.
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