Twitch Unveils New Revenue Sharing Deal to Benefit Streamers
Twitch announces new revenue sharing deal to benefit streamers. Streamers with over 100 paid subscribers to receive 60% of subscription revenue. Twitch Plus programme to launch in May, benefiting three times as many streamers.
In a bid to support its creators and boost revenue, popular streaming site Twitch has announced a major shake-up in its revenue sharing model. The platform, owned by parent company Amazon, plans to share a larger portion of its revenue with streamers, allowing them to earn more from their channels.
Currently, streamers earn money through fan subscriptions, with Twitch and the creator splitting the revenue 50/50 after fees are deducted. However, under the new system, streamers with more than 100 paid subscribers will receive 60% of the subscription revenue. This change is expected to benefit a larger number of streamers, as Twitch estimates that "three times as many streamers" will now enjoy better revenue shares.
The announcement comes just weeks after Amazon revealed its decision to lay off over 500 Twitch employees, accounting for a third of the workforce. Twitch CEO Dan Clancy acknowledged the financial challenges faced by the platform, stating, "We've implied this before... but I'll be blunt, we aren't profitable at this point."
The revamped revenue sharing system, known as the Twitch Plus programme, is set to take effect in May. Clancy emphasised the importance of streamers and their communities, stating, "Streamers and the communities you build are the foundation of Twitch." The goal of the new deal is to establish a transparent framework for streamer compensation that rewards and encourages creators committed to live streaming.
Under the new rules, streamers will need to achieve 300 paid subscribers to qualify for the higher payout. However, the 70/30 revenue split will remain in place for Twitch's most popular users, who have over 350 paid subscribers each month. This aspect of the new system was previously announced in June 2023 as part of the "Partner Plus" programme, which faced some criticism for its exclusivity.
Twitch's move to increase revenue sharing comes amidst growing competition from rival platforms. Kick, for example, offers streamers a significant 95% share of the revenue generated through subscribers, attracting some of Twitch's biggest names. Additionally, YouTube, another major player in the streaming industry, offers creators a 70% share of subscription revenue but takes a 30% cut from fan donations, whereas Twitch gives all donations directly to streamers.
The announcement also coincides with Twitter's rebranding as X and its efforts to entice content creators from other platforms by offering a substantial share of its advertising revenue. Notably, top YouTuber MrBeast recently revealed his earnings from videos on X, which amounted to over $250,000 (£197,000). However, this figure pales in comparison to the millions of dollars he earns from YouTube.
Twitch announces new revenue sharing deal to benefit streamers
Streamers with over 100 paid subscribers to receive 60% of subscription revenue
Twitch Plus programme to launch in May, benefiting three times as many streamers
Source: BBC