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Twitch doubles down on 50/50 revenue split with streamers

'The answer is no' was the response over the weekend to a return to 70/30 revenue sharing with Twitch streamers.

Twitch
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Twitch made many of its streamers unhappy last month when it changed its revenue sharing split with stremers from 70/30 to 50/50. Despite the protests from many of the company's top personalities, it doesn't look like that's about to change. The topic was raised at TwitchCon 2022 and Twitch seems adamant that the 50/50 revenue share is here to stay.

"The important thing for me is that me and my teams are one hundred percent focused on improving your ability to make income," Twitch Chief Monetization Officer Mike Minton said during TwitchCon 2022's Patch Notes stream on Sunday (via Eurogamer). "At the end of the day, we're setting a framework for the long term so that you can all keep earning as long as possible and the next generation of streamers can have that same opportunity."

"We did look at all possible options," he added. "Could we do it, could we offer 70/30 widely and broadly? And the answer is no. It's simply is not viable for Twitch or the long term, at least as we know things today."

GSA exhibition at TwitchCon 2022
TwitchCon 2022
Source: Shacknews

Minton also addressed one of the more common responses from streamers, which is that Twitch is owned by Amazon, one of the wealthiest companies in the world. He notes that while this is true, Amazon is still looking to Twitch to maintain profitability without relying on its parent company's revenue stream. On top of that, he cites the increasing costs in live streaming across the world.

Twitch revenue sharing has been a hot topic since the company issued a statement back in September, which announced the streamer revenue cut. Unrest was not eased at this year's TwitchCon, which is usually recognized for introducing new streamers tools and streamer-friendly initiatives. That was largely absent at this year's convention. This year's show was recognized more for Twitch's community members being there for each other, which is likely a sign of things to come.

Twitch and its future continues to be a major story worth watching and we'll continue to monitor the situation at Shacknews. Keep it here for any updates.

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Ozzie has been playing video games since picking up his first NES controller at age 5. He has been into games ever since, only briefly stepping away during his college years. But he was pulled back in after spending years in QA circles for both THQ and Activision, mostly spending time helping to push forward the Guitar Hero series at its peak. Ozzie has become a big fan of platformers, puzzle games, shooters, and RPGs, just to name a few genres, but he’s also a huge sucker for anything with a good, compelling narrative behind it. Because what are video games if you can't enjoy a good story with a fresh Cherry Coke?

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From The Chatty
  • reply
    October 11, 2022 12:40 PM

    Ozzie Mejia posted a new article, Twitch doubles down on 50/50 revenue split with streamers

    • reply
      October 11, 2022 12:43 PM

      what a fraud

      On top of that, he cites the increasing costs in live streaming across the world.

      put up or shut up, mr "monetization officer" . so far this is some enron/worldcom bullshit that just screws everyone but the company.

      if costs are ACTUALLY rising, should be pretty easy to empirically SHOW THAT

    • reply
      October 11, 2022 1:25 PM

      Oof. Microsoft save us!

      • reply
        October 11, 2022 3:37 PM

        Mixer or whatever ended to early

      • reply
        October 11, 2022 3:51 PM

        Why? Is mixer being rebooted???

    • reply
      October 11, 2022 1:49 PM

      Damn, is that really the split? That's mad.

      • reply
        October 11, 2022 4:05 PM

        That seems insane to me.

      • reply
        October 11, 2022 4:13 PM

        In the past that was the starting split. Then as you got partner and got more subscribers you got moved to a 70/30 split. And then there were the really big streamers with unique contracts that could change the split more.

        But Twitch has basically said they are doing away with the 70/30 split, except if you are grandfathered in with an existing contract. But as those contracts expire they will renew at 50/50.

        Twitch is the only streaming platform that requires an exclusivity contract to get paid. So when those contracts start to expire I expect that you will start to see the big streamers cancel their Twitch contracts and stream on Twitch, Youtube, Facebook, etc at the same time.

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      October 11, 2022 3:31 PM

      Wouldn’t that just drive streamers to use alternative rewards and stuff? I don’t watch a lot of streamers, but I’d have to imagine there are plenty of services that people could use to make revenue with an active audience.

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        October 11, 2022 3:34 PM

        yeah, it does reek of the shit wages, hope for tips framework. "but our costs are so high!" tacked on is extremely laughable.

        streamers will need tips, prime subs, merch, and all sorts of affiliate links (Gfuel, Logitech, etc etc etc) to make this remotely worth their time.

        major fucking bonehead move by twitch. then add on the fact that hasan and pokimane got scammed by a guy gambling on Esports... but they did a major coup to crack down on slots gambling. not esports gambling. WELP.

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        October 11, 2022 4:05 PM

        Seems like a good opportunity for Epic to get into streaming tbh.

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        October 11, 2022 4:17 PM

        Ninja already did it and his viewership went up. The big streamers are going to jump ship from their Twitch contracts and continue to stream on the platform without subs. And just get their revenue from Youtube, Facebook, Twitch Bits, or Direct donations. I would expect that Patreon+Discord will probably be a big avenue as well since you can integrate Discord with your Patreon, make that the default chat that the streamer interacts with.

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          October 11, 2022 8:23 PM

          lol, Youtube isn't gonna get any love with their dumbass demonetizing algorithms.

      • reply
        October 11, 2022 4:20 PM

        The problem is sort of the chicken/egg problem. Same that Mixer and YouTube had/have. No one goes to Mixer or YouTube to browse for live gaming content. They go to Twitch. So the audience isn't there for smaller streamers to build communities on those services. Yeah maybe a large streamer can bring some people like Ninja and Shroud did, but those people didn't hang on Mixer looking for other content. They just went back to Twitch if their favorite streamer wasn't live on Mixer.

        It would take a mass exodus from Twitch to another service for anything to happen.

        • reply
          October 11, 2022 6:05 PM

          What I mean is that the streamer would still stream on Twitch, but instead of just being cool with their revenue split, wouldn't they try to side-hustle more to bring in alternate streams of revenue that would ultimate detract from Twitch?

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            October 11, 2022 6:20 PM

            I mean, if their main thing is streaming getting some extra sponsorships or something isn't going to detract from Twitch because they still have to do their thing which is stream. It's not like they're going to say "Don't sub to me, instead paypal me" or something.

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      October 11, 2022 3:36 PM

      Amazon isn't anybody's friend. Of course they'll abuse their employees; we've seen the pattern

      • reply
        October 11, 2022 4:08 PM

        And Twitch streamers aren't employees they are independent contractors. Which means that they get treated even worse.

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          October 11, 2022 4:30 PM

          I'm not going to use their terms for it.

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      October 11, 2022 4:17 PM

      They should have tapered it off instead of going straight from 70/30 to 50/50 after you hit 100k in a year.

      70/30 'til you hit $100k, then 60/40 'til $200k, then 50/50 from there or something. It'll be interesting to see if YouTube or TikTok can gain some traction in the space if they offer better cuts for streamers.

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        October 11, 2022 8:14 PM

        Isn't this how they're handling it? If it isn't, they should be. This should be a tiered system to the point where even an extra 20% cut isn't going to fucking kill a streamers lifestyle, particularly the bigger ones who make 6-7 figures a month.

        • reply
          October 11, 2022 8:23 PM

          No, it's actually really bad. It's 50/50 for everyone EXCEPT certain top streamers who already had deals in place. Those streamers will get 70/30 UNTIL they reach $100k earnings in a year and then the split goes to 50/50 for even them.

          So the little guys get shit on.

    • reply
      October 11, 2022 4:55 PM

      Do game developers get a cut of the revenue for their game being streamed?

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        October 11, 2022 8:07 PM

        no, in fact they often pay streamers to play their game.

        • reply
          October 12, 2022 5:59 AM

          Or they hand out some in-game loot to people who view streams of their game, so that their game has higher viewer stats. It's such a gross business model.

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      October 11, 2022 8:26 PM

      how does subscribing via mobile work? Apple takes 30% of the initial purchase leaving 70% for Twitch to split 50/50 now?

      • reply
        October 11, 2022 8:38 PM

        Sub prices are adjusted on mobile. It's $5.99 for a one month sub on mobile vs $4.99 if you sub via the website. So, yeah.

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