Following the publication of a new report claiming that Twitch is considering making drastic changes to the way revenue is earned on its mainline streaming service Twitch.tv, career streamers have expressed their concerns.
Twitch is under pressure from its owner, Amazon, to increase its profitability, according to Bloomberg. As a result, the company is looking at a variety of revenue-generating options. Unfortunately, many of the rumored plans, according to those close to the situation, do not paint a happy picture for Twitch viewers and core streamers — some of whom have made a comfortable living out of content creation.
The possibility that Twitch will reduce the subscription revenue of its top-partnered streamers from 70% to 50% is a major source of concern. The latter figure represents the average earning rate for all Twitch streamers, but those who are among Twitch’s highest earners have been able to negotiate a higher cut in exchange for site exclusivity. According to Bloomberg, the revenue cut would relieve streamers of their exclusivity, allowing them to broadcast on other platforms in addition to Twitch.
The other rumored scheme would see Twitch pressuring streamers to run more advertisements on their live channels. Streamers who are more willing to include advertisements in their broadcasts would be rewarded in various ways that are currently unknown. In summary, the report depicts a scenario in which Twitch is determined to increase its profit margins as a company, which will inevitably necessitate cost-cutting/revenue-generating practices at the user end of the spectrum.
Several well-known streamers have expressed their displeasure on social media, though some have welcomed the possibility of dropping exclusivity from the top streaming deals. It’s worth noting that neither Amazon nor Twitch have issued a statement confirming these plans.
