Twitch’s new payout system explained amidst ‘unfair’ controversy
On September 21, Twitch published a blog post detailing the revamped subscription income system for content creators on the purple platform. The new payout system will forego the 70/30 split that was previously offered to selected streamers.
The Amazon-owned livestreaming platform will soon implement the 50/50 split, and an updated Ads Incentive System will assist creators who have been impacted by the change.
Dan Clancy, Twitch's president, addressed the platform's new payout system and explained the updated revenue share granted to various content creators.
The blog-post stated that Twitch uses a standard revenue split of 50/50, based on net revenue from the earnings. However, the corporation previously offered premium terms to selected streamers:
Clancy disclosed that the platform lacked a consistent method for determining which streamers would receive premium incentives, therefore leading to the decision to discontinue offering such agreements to new content creators:
Twitch will amend the contract for streamers who are still on the premium agreement in the revamped payout system, so that they can keep the 70/30 split for the first $100,000 generated through subscription revenue:
All revenue above $100,000 will be split 50/50 from June 1, 2023:
Clancy stated that Twitch's recent increase in ad revenue share to 55% would be a "great way" for content creators to recoup any losses created by the new payout structure:
In a follow-up section, Dan Clancy explained why the 70/30 split was moving away from the platform.
The cost of operating a video-streaming service was a leading factor in the introduction of the new payout system. It was reported that Twitch spends more than $1,000 to host a streamer broadcasting 200-hour long
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