Twitch is said to be considering major changes to monetization practices that streamers are upset with because the unbalanced percentages potentially lining Twitch’s bottom line.
according to Bloomberg Report, Amazon, the parent company of Twitch, is considering making multiple changes to its partner program in order to increase its profits. These changes include a new division of revenue from subscriptions, a new category system, and enhanced advertising.
One of the monetization changes under consideration is a reduction in revenue from partner broadcast subscriptions, the most popular Twitch streaming operator. The proposed cut would cut revenue that streaming partners generate from subscriptions from 70% to 50%.
Another suggestion Twitch is considering is adding a layering system for sharing banners. to me BloombergThese levels show the criteria an operator must meet to receive 50% or 70% of revenue from their subscription. In exchange for this proposal, anonymous sources said Bloomberg That Twitch could release broadcasts from its exclusivity in its contracts, which would allow it to stream on rival Twitch sites like YouTube and Facebook Gaming, would likely recoup any decline in revenue.
Twitch is also reportedly considering offering incentives for more ads through a “revenue sharing arrangement” Bloomberg It will provide a “more profitable model for live broadcasters”.
Twitch Streamers has not accepted news of Twitch’s proposed changes to its affiliate program. A twitch streamer PleasentlyTwstd Kotaku She wasn’t surprised that Twitch was exploring these changes. If the website changes this summer as it is now, with pleasure They said smaller live broadcasters would have “little or no incentive” to grow their channels on the platform.
“I think the smaller broadcast companies will have little or no incentive at this point to really push for growth,” with pleasure She said. “It starts to feel like you’re paying off you have to make more subs and the current struggle is discoverability at all.”
PleasantlyTwstd said she would like to see broadcasters brought into the conversation about Twitch’s monetization changes so they can be called “in earnest.”
“Twitch has been kind of in a wait mode where their priority is to make more money for the platform, but until they actually try to work more closely with the people who are making them money or freely making tools, they will keep coming up with ideas and “initiatives” that fail.”
Left streamer Hassan “Hasanabi” Piker took to Twitter saying that the reason Twitch is making these changes is because the company doesn’t see itself as a competitor within the streaming space, so there’s no good reason to offer something really compelling to its users.
“[I] Love twitch but they seem to stay away from [content creators] to fix their profits,” Baker said in a tweet. “My earnings come almost entirely from subscribers who choose to give me $5 a month. Twitch doesn’t consider the 50/50 split it takes from young creators in the process to be profitable enough. That’s brutal.”
“Subscriptions are more important to the life of every streaming player than almost any other utility Twitch has to offer, and touching that divide is a financial ruin and potentially thousands of full-time content creators removed from your platform instantly.” Jericho She said.
“What a joke. It makes it worse for everyone except Twitch themselves,” Jacksepticeye . said.
“Twitch is crazy if they think this is going to end well,” Max Gacy Gonzalez said:. “I like that it will actually rock the podium in the worst possible way.”
Kotaku I reached out to Twitch for comment.
Anonymous sources said that while it is reported that these proposed changes will reach the site as soon as this summer Bloomberg None of these changes have been completed.