Twitch is changing the terms of its deals with top streamers to pay them less than it has been.
Twitch currently has a 50/50 revenue deal with the majority of its streamers, but some of the top ones earn 70%. According to a blog post by company president Dan Clancy, that is changing with Twitch updating the terms of its revenue sharing agreement.
Under the new terms, top streamers will still earn a maximum of 70% on the first $100,000 annually. After the first $100,000, however, the revenue sharing will drop to the default “50% for Tier 1 subscriptions, 60% for Tier 2, and 70% for Tier 3 for the remainder of the 12-month period.”
The new terms will go into effect on June 1, 2023, and will be calculated based on a 12-month period based on a streamer’s annual agreement renewal date. The $100,000 threshold will reset on the first day of every new 12-month period.
According to Clancy, the changes will help the company shorten payout time as it works toward same-day payouts.
“At the time of this posting, more than 22,000 of you have weighed in on UserVoice asking us to move all streamers to 70/30 and to pay streamers faster,” Clancy writes. “Let’s chat about the latter part first.
“As you probably heard by now, we’re in the middle of rolling out the largest change to payouts in years by cutting the payout threshold in half to $50. This is an important middle step that will help streamers put money in their pockets now, while getting us closer to our goal of same day payouts and lower thresholds.”
Clancy says the cost of delivering the service was also a factor.
“Lastly, we have to talk about the cost of our service,” Clancy adds. “Delivering high definition, low latency, always available live video to nearly every corner of the world is expensive. 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. But to fully answer the question of “why not 70/30,” ignoring the high cost of delivering the Twitch service would have meant giving you an incomplete answer. “