Is Twitch DESPERATE?


Twitch is changing its terms for creators, and for once it seems to be FAVORABLE. Are they desperate to hang on to the streaming talent they have after so many have moved to Kick and YouTube? Are Twitch streamers jumping ship after the layoff announcements?

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Additional Context:
Twitch, the Amazon-owned streaming platform, is making waves in the streaming world with recent changes to its terms for creators. These adjustments are a significant departure from their previous policies and could be seen as Twitch’s strategy to retain and attract streaming talent in a highly competitive market.

Firstly, Twitch is expanding its “Partner Plus Program,” which will now be known as the “Plus Program,” to include more streamers. This program offers improved net revenue shares on paid and gifted subscriptions. Initially launched in October 2023, the Plus Program required streamers to have 350 subscribers to qualify for a 70/30 revenue share. Now, this threshold has been reduced to 300 subscribers, making it more accessible to a broader range of streamers. Additionally, a new 60/40 revenue share tier has been introduced for streamers who maintain 100 Plus Points for three consecutive months, further broadening the program’s reach. These points are earned through subscriptions, with higher-tier subscriptions being worth more points​​​​​​.

Another major change is the removal of the $100,000 cap on net revenue at the 70/30 revenue share level. Previously, once a streamer earned $100,000 annually in net subscription revenue, their revenue share would revert to 50%. By eliminating this cap, Twitch is incentivizing streamers to continue growing their channels without worrying about hitting a revenue ceiling​​​​​​.

However, not all changes are favorable for creators. Twitch is also altering its Prime Gaming subscription model. Previously, Prime Gaming subs were paid out the same as regular Twitch subscriptions, but now they will be transitioning to a fixed rate model based on the subscriber’s country. This change, effective June 3, 2024, is expected to result in a slight decrease in revenue for some streamers, though Twitch CEO Dan Clancy has stated that the impact will be less than 5% in most countries​​​​.

These changes come at a time when Twitch is facing stiff competition from platforms like YouTube and Kick, which offer higher revenue splits with lower qualification criteria. Twitch’s modifications to its revenue share framework appear to be a strategic move to remain competitive in the dynamic streaming landscape. Furthermore, the company has recently undergone cost-cutting measures, including laying off 35% of its workforce, as it strives to improve its profitability and sustainability​​.

Overall, Twitch’s new terms seem to be a mixed bag for creators. While the expansion of the Plus Program and the removal of the revenue cap are positive steps, the changes to the Prime Gaming subscription payouts might not sit well with all streamers. It remains to be seen how these alterations will impact Twitch’s position in the market and its ability to retain and attract streaming talent amidst increasing competition and shifting dynamics in the creator economy.

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