End of Abundance: Twitch returns to 70/30 revenue sharing – News

platform flow Currently the most popular, Twitch, has been free since its very beginning. This means that those who embark on the adventure have nothing to pay, including for the use of the available infrastructure. Instead, Twitch partners, those who stream regularly, must accept a revenue-sharing system on subscriptions, and of course on ads.

The contract is simple: half of the income from subscriptions goes to Twitch, and the other half goes to the operator. Only a select few, at the start of the platform, were able to negotiate a 70% stake for themselves and 30% for Twitch. We know that these contracts no longer exist and will not be offered again “For more than a year”At the same time, the Amazon platform did not back down from the contracts signed at that time. It will be completed soon, as announced by Dan Clancy at A communication :

“For streaming users who take advantage of this premium post, we will adjust the terms so that they retain a 70/30 ratio for the first $100,000 in revenue for the year on subscriptions. After $100,000, the split will revert to the standard 50/50 level. We’re announcing now, But it will not be effective until June 1, 2023.“

A huge loss for the most prominent streamers, who are also the richest. But Twitch promises that compensation can be done without worry thanks to… advertisements.

“The recent increase in ad revenue sharing to 55% as part of the Ad Incentive Program is an ideal solution for larger broadcast creators to offset most, if not all, of this revenue loss.”

The problem: Live broadcasters will have to resort more and more to advertising. We told you about this phenomenon two years ago in an article dedicated to advertising and product placement on Twitch, and how streamers were encouraged to explore all possible sources of income.

In any case, the reason given by the platform is simple: the equality of old and new streaming devices, but also the massive infrastructure cost resulting from the popularity of streaming.

“Providing high resolution with extremely low latency for stable video broadcasts to all corners of the planet is expensive. Using Amazon Web Services interactive video overhead costs, which are broadly those of Twitch, we can estimate that broadcasting is 200 hours per month for 100 A concurrent active user costs us $1000 per month. It’s not something we talk about regularly because our operators shouldn’t have to worry about it. But to fully answer the question “why don’t we generalize 70/30” we must not ignore the cost of infrastructure.“

Since the announcement a few minutes ago, already large profiles have interacted on social networks. This is the case of MisterMV, which saw this change happen and predicted an increase in ad usage.

What you advertise for 3 years lol.

tldr: The site loses a lot of money, partners benefiting from 70% / 30% will lose in the long run (or short term for density), compensates by protecting ads with personalized offers and better rates on them.https://t.co/tAJgBvM8gH

– mistermv (mistermv) September 21 2022

This is also the case with Zerator, who does not fail to say that a large part of his income will disappear, as he is the one who rewards a company and not a person directly with Twitch.

20% drop in annual Twitch turnover from mid-2023 without us being able to discuss or do anything. And no, changing platforms is not viable and one cannot be installed even less. It was the right year to “transform” big projects, huh 👍🏼🫣 https://t.co/WelTPLujoz

—ZeratoR (ZeratoR) September 21 2022

during this time, YouTube ad That there will be no need to be a partner to monetize broadcasts on its platform.