Streamers Aren’t Liking Twitch’s Potential Money Making Idea

That’s a bold Twitch move, let’s see if it pays off. Screenshot: TikTok / bradeazy / Kotaku

Twitch is reportedly considering major changes to monetization practices that streamers are concerned about, as potentially lopsided percentages contribute to rounding Twitch results.

According to a Bloomberg report, Amazon, the parent company of Twitch, is considering multiple changes to its affiliate program in order to increase its profits. These changes include a new distribution of revenue from subscriptions, a new tier system, and stronger ads.

One of the monetization changes being considered is a reduction in subscription revenue for Partner Streamers, Twitch’s most popular streamers. The proposed reduction would reduce the revenue that partner streamers make from subscriptions by 70% to 50%.

Another proposal Twitch is considering is adding a tier system for partner streamers. According to Bloomberg, these tiers detail the criteria a streamer must meet to receive 50% or 70% of their subscription revenue. In exchange for this proposal, unnamed sources told Bloomberg that Twitch could release streamers from their exclusivity in their contracts, which will allow them to stream on competing Twitch sites like YouTube and Facebook Gaming potentially to recoup any revenue drops. .

Twitch is also reportedly considering incentives for more advertising via a “revenue-sharing agreement,” which Bloomberg says will present “a more lucrative model for streamers.”

Twitch streamers didn’t like the news of Twitch’s proposed changes to its Affiliate Program. Twitch streamer PleasantlyTwstd told Kotaku that she’s not surprised Twitch is exploring these changes. If changes hit the website this summer like they are now, PleasantlyTwstd said smaller streamers will have “little to no incentive” to grow their channels on the platform.

“I think smaller streamers will have little to no incentive at this point to really push for growth,” PleasantlyTwstd said. “It’s going to start to feel like it’s making a payout, you need to hit more subs and the current struggle is the possibility of discovery.”

PleasantlyTwstd said it would like streamers to be included in the conversation about Twitch’s monetization changes so that they are “seriously” advocated.

“Twitch has been kind of in a holding pattern where their priority is to make the platform more money, but until they actually try to work more closely with the people who bring them money. money or freely create tools, they’re going to keep coming up with ideas and ‘initiatives’ that fall flat,” she said.

Left-leaning streamer Hasan “Hasanabi” Piker took to Twitter saying that the reason Twitch made these changes is because the company doesn’t see itself as having competition in the streaming space. direct, so there is no reason to offer anything really compelling for its users.

“[I] love twitch but it seems like they are drifting away from [content creators] to fix their profits, Piker said in a tweet. “Nearly all of my revenue comes from subscribers who choose to give me $5 a month. Twitch doesn’t see the 50/50 split it takes among smaller creators in this process as profitable enough. It’s wild.

“Subscriptions are more important to every streamer’s life than almost any other utility offered by Twitch and to tamper with the split is financially devastating and potentially immediately removing thousands of full-time creators from your platform,” JERICHO mentioned.

“What a joke. Makes the situation worse for everyone except Twitch themselves,” jacksepticeye said.

“Twitch is INSANE if they think it’s going to be okay,” Max “Gas Mexican” Gonzalez said. “Like actually gonna shake the platform in the worst way possible.”

Kotaku has contacted Twitch for comment.

Although these proposed changes were posted on the website as early as this summer, unnamed sources told Bloomberg that none of these changes have been finalized.