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Twitch Announces Pay Cuts For Streamers

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Amazon’s popular streaming platform Twitch has had a wild few weeks. From the drama of the gambling streams, to some of their top streamers threatening to strike if gambling isn’t banned, to the pushback from creators, it has been a rough road for Twitch and things aren’t going to slow down now.

Today, Twitch officially announced that “premium” creators who have previously gotten deals at a 70/30 subscription split in their favor would now see that split capped after the first $100,000 of earnings.

But the pay changes didn’t stop there as after that the split will change to 50/50, which is the standard split for non-premium, “normal” Twitch streamers.

According to the statement: “For these streamers still on these premium deals, we’re adjusting the deal so that they retain their 70/30 revenue share split for the first $100K earned through subscription revenue. Revenue above $100K will be split at the standard 50/50 share split. We’re announcing this change now, but it won’t go into effect until after June 1, 2023. After that point, streamers will only be affected once their existing contract is up for renewal. All streamers with these terms have already received this information and more via email, and we will make sure to give them exact updates and timelines as we get closer to June 1, 2023.

For approximately 90% of streamers on standard agreements with premium subscription terms, this change will not affect them at their current revenue. For those who are affected, we wanted to make sure the impact was minimal — not just by giving them ample time before the deal goes into effect —  but also by offering an alternative way to earn revenue. Our recent bump in ads revenue share to 55% as part of the Ads Incentive Program is a great way for these larger streamers to make up most, if not all, of that revenue. For those that are interested in additional detail, we have provided a copy of the email that we have sent to some of these streamers explaining the change and how it affects them below.”

Here are the updated terms:

  • We will continue to offer you 70% of subscription revenue share for all subscription Tiers up to a maximum subscription revenue of $100K USD annually.
  • For subscription revenue in excess of $100K USD, your sub revenue share rate will default to the standard Partner rate of 50% for Tier 1 subscriptions, 60% for Tier 2, and 70% for Tier 3 for the remainder of the 12-month period.
  • The $100K USD threshold will be calculated over a 12-month period starting from your annual agreement renewal date. The $100K USD threshold will reset on the first day of the subsequent 12-month period, and each 12-month period thereafter.
  • Once we implement this change, progress towards the $100K USD threshold will be trackable on your creator dashboard.
  • The subscription revenue threshold of $100K USD applies to all subscription earnings, including Prime subscriptions, and will not impact any other revenue shared with you (advertising, Bits, etc.)

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