With its new organization, streamers on Twitch risk losing a lot of money, while the platform will get richer.
After more than two years of pandemic, the livestream has gone from a niche activity, to a very popular mainstream hobby. The platform of choice for many remains Twitch, a place where many very famous names can earn amounts that could be described as astronomical. However, this is likely to change very soon.
Indeed, according to a report by Bloomberg, Twitch is reportedly considering lowering streamers’ salaries if they don’t comply with a rather intrusive condition. According to the sources cited by the media, they will soon have the choice between putting more advertisements in their stream, or seeing their share drastically reduced with each new sub, going from 70% to 50% for the biggest streamers. In both cases, Twitch comes out a winner since it will touch either the money of the brands or that of the subscribers.
This potential change could affect medium to high influence streamers, depending on the partner programs established by Twitch. If the smaller program already splits the revenue generated from subs 50/50 between Twitch and the streamer, the larger ones can take between 60% and 70% currently. In return, Twitch would be willing to let its streamers use other competing platforms from time to time, such as YouTube for example.
What are Twitch’s motivations?
Although this information is still only at the rumor stage, we can already advance on the reasons which would push Twitch to act in this way. Indeed, it may seem surprising when you know how popular livestreaming is today: it is a company that brews money by the millions, if not more. Nevertheless, behind the scenes is not that rosy.
For many months, Twitch has lost many employees who say they are unhappy with the way the company operates internally. On the other side of the mirror, several streamers also pass on competing platforms, some of them being sometimes very influential. So it seems that many people have things to report and that Twitch does not intend to watch his ship sink without doing anything, if that were to be the case.
However, one can wonder if this decision will not rather scare away users (creators as well as spectators) in the long term. According to Bloomberg, these changes could see the light of day as early as this summer. To be sure, however, we will have to wait for official confirmation from Twitch, which has not yet wished to answer any questions.