A reduction from 70% to 50% of Twitch streamers’ share of subscriptions are reportedly in the works in order to boost the streaming platform’s profits.
After Amazon and Etsy increased their fees and had their new pay cuts from their sellers, Twitch is inspired to do the same for its content creators.
Users of Twitch are aware of pay cut plans which are focused on the incentivization of streamers, forcing them to run more ads, all the while considering the possibility of a reduced share of the content creator’s subscription fees.
This means that the top streamers will get 20% less from their subscriptions, as Twitch is looking to change the profit-sharing setup from 70-30 to 50-50.
The company is also considering implementing various pay categories with different requirements necessary to qualify for each.
Altogether, these adjustments are meant to enhance Twitch’s profitability, but it might come at the price of their community’s most engaged users.
Do take note that none of this is final, as it’s still being discussed as a potential way to increase Twitch’s revenue.
Source: Bloomberg