Twitch has announced a move away from the 70/30 billing model. Starting next year, everyone will move to 50/50.
The most popular streamers on Twitch had a more favorable distribution of subscription revenue. 90% of streamers shared their subscription money 50/50, while a select few had a 70/30 split in their favor.
Twitch is changing this rule and equalizing everyone to the same level. While the changes will go into effect in June 2023, TTV is already preparing its creators for what the platform believes is a small change.
70/30 is going away
Contrary to community voices, there will be no transition of everyone to 70/30 split contracts. Instead, Twitch will equalize all contracts to 50/50.
For those streamers who use premium offers, we are adjusting the contract so that they retain their revenue share of 70/30 for the first $100k earned through subscription revenue. Revenues above $100k will be split according to the standard 50/50 rule.
Why is this happening? The cost of maintaining services has increased, at the same time streamers’ revenue from advertising has increased. The split from advertising has been increased to 55%
Our recent increase in ad revenue sharing to 55% under the incentive advertising program is a great way for larger streamers to recoup most, if not all, of that revenue.
As we read further:
Over the past five years, they have yielded an annual 27% increase in streamer revenue per hour of viewing. This means that the same hour of viewing now generates on average three times as much money as it did five years ago.
That is, in short, streamers are earning enough and a 70/30 split is not necessary. This applies to a total of 10% of streamers, so it’s not some amazing development, but it’s sure to get some people heavily riled up.
On the other hand, most already earn primarily through separate collaborations or donations anyway. The share of subs in revenue is no longer as crucial as it once was.