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Things Just Keep Getting Worse For Twitch

It's been one thing after another for Twitch, the popular streaming service known for its shady sideStreamers didn't react too positively to Twitch's new exclusivity rules. On the one hand, the update finally allowed those in its Partner Program to stream on different platforms, but it also made streaming to multiple platforms simultaneously a no-go. Additionally, Twitch announced big changes to its gambling policy in an attempt to placate Twitch partners that had threatened to strike because of gambling streams. While the update on gambling was celebrated by individuals like Pokimane, others took the opportunity to draw attention to additional content issues.

In another divisive move, Twitch has announced that it will cut the revenue of some of its biggest streamers. In specific situations, the money a streamer gains through subscriptions will change to 50 percent of the total rather than the previous amount of 70 percent. As outlined in a letter from Twitch President Dan Clancy, this change won't impact all streamers on the platform. In fact, Clancy said the 50/50 split of subscription revenue is the baseline within the majority of streamer agreements. So, where does the reduction from 70 to 50 percent come from?

Premium deals led to inconsistent Twitch subscription revenue shares

"For some time we did offer standard agreements with premium subscription terms to select streamers as they grew larger," Dan Clancy explained. He specified that these premium deals offering a split of 70/30 have some issues in Twitch's eyes. He pointed to the company's lack of transparency about the fact that the deals existed, inconsistent standards for qualifying for said deals, and the conclusion that streamers with standard contracts shouldn't receive different revenue shares based on the size of their audiences.

As a solution, Twitch plans to allow the 70/30 split to continue for those on the premium deals, but only for the first $100K earned via revenue from subscriptions per 12-month period following their next contract renewal after June 1, 2023. Anything earned above that amount will then be split based on the standard Partner rate for the different subscription tier levels. The $100K threshold will refresh every subsequent year.

This move has proven unpopular with some streamers, including speedrunner DarkViperAU. In a tweet, DarkViperAU took issue with Twitch's approach compared to that of YouTube Gaming. "Important part of cut to sub revenue isn't that some people are losing 70/30 after earning a certain amount, but that Twitch has no interest in giving EVERYONE 70/30 to match YouTube's revenue share," they wrote. The change won't arrive until next year, so it remains to be seen just how much it will effect Twitch and streamers alike.