Twitch Makes Major Monetization Changes to Secure Long-Term Sustainability
Twitch, the popular live streaming platform, has announced significant changes to its monetization system in an effort to create a more sustainable model. These changes involve adjustments to the Partner Plus program and alterations to the payout structure of the Twitch Prime Gaming subscription for creators. In a recent blog post, CEO Dan Clancy outlined these three key changes, highlighting the company’s commitment to providing a lucrative platform for streamers.
Removal of $100K cap on revenue share
Twitch is eliminating the $100,000 cap on the revenue share for its highest-earning creators, thus reverting the split back to the original 70/30 model. This move comes after last year’s decision to reduce the revenue share to 50/50 for any earnings beyond the $100,000 threshold. The removal of this cap aims to incentivize high-earning creators and ensure their continued commitment to the platform. Twitch recognizes the importance of retaining its top talent, especially as competitors try to entice them with attractive contracts.
Expanding and enhancing the Partner Plus program
The Partner Plus program, which currently rewards partners who maintain 350 paid subscriptions for three consecutive months with a 70/30 revenue split, is getting a significant upgrade. Twitch plans to introduce a new tiered revenue split of 60/40 and broaden the program to include affiliates. Starting in May, creators will accumulate points based on the subscription levels of their viewers. These points will determine the revenue split level they qualify for. Twitch estimates that this expansion will triple the number of creators eligible for the program, providing more opportunities for revenue growth.
Twitch Prime Gaming subscription changes
Twitch Prime Gaming, a popular benefit for Amazon Prime or Prime Video subscribers, rewards members with a free monthly Twitch subscription that they can gift to a chosen creator. Up until now, creators received 50 percent of the subscription’s value, while larger streamers received 70 percent. However, starting on June 3rd, Twitch will implement a fixed rate payout based on the creator’s country. While this adjustment might result in a reduction in earnings, Twitch emphasizes that the difference will be minimal, with a decrease of less than 5 percent in most countries.
Ensuring Twitch’s long-term sustainability
These monetization changes reflect Twitch’s commitment to ensuring the long-term stability and profitability of the platform. With the elimination of the revenue cap, the expansion of the Partner Plus program, and the adjustments to the Twitch Prime Gaming subscription payout, Twitch aims to create a more enticing ecosystem for streamers. These alterations come at a time when the platform is facing financial challenges, leading to layoffs and the departure of key executives. Twitch’s CEO, Dan Clancy, has repeatedly emphasized the need for critical changes to safeguard the company’s health and viability.
In conclusion, Twitch’s latest monetization changes demonstrate its dedication to creating a sustainable environment for streamers to thrive.
By addressing issues such as revenue sharing, program expansion, and subscription payouts, Twitch aims to support its creators while also navigating its own financial challenges. These updates will surely impact the streaming community and shape the future of Twitch as a leading platform in the live streaming industry.
Analyst comment
Positive news.
Short analysis: The removal of the revenue share cap and expansion of the Partner Plus program will incentivize high-earning creators and provide more revenue growth opportunities for a larger number of creators. Though there may be a minimal reduction in earnings for Twitch Prime Gaming subscriptions, these changes overall aim to create a sustainable ecosystem for streamers. The market is likely to respond positively to these updates, as they address key issues and demonstrate Twitch’s commitment to their creators and long-term viability.
