In a blog released today by Twitch president Dan Clancy, the streaming platform crushed hopes that a 70/30 split would be coming to all streamers.
Twitch has denied a request by streamers to move all streamers to a 70/30 ratio on subscriptions that some partners had experienced on a trial basis. The platform will also end the 70/30 trial, and cap the potential ratio at a threshold of $100,000. This was confirmed in a blog post by Twitch president Dan Clancy on September 21st, 2022.
Currently, the vast majority of streamers receive a 50/50 ratio of revenue from subscriptions. Some of the largest streamers were trialed on a 70/30 ratio earlier this year. However, starting June 2023, these trial streamers will only recieve 70/30 on the first $100,000 they earn from subscriptions, before switching back to a 50/50 split.
On renewal of their partnership agreement, all streamers will return to a 50/50 split.
Why no 70/30 split on Twitch?
In the blog post, the Twitch president explains that the high cost of running the site, coupled with the investment in new innovations, is the reason the company will not move towards a 70/30 split. The post claims that the cost to host a 100 concurrent viewer average streamer for 200 hours a month is over $1000 a month.
What’s more the post claims that elements such as sub trains, Prime subs, ad incentive programs, and other initiatives have driven a 27% increase in revenue per hour. Prime subs themselves increase the ratio to 65/35, but are a limited commodity. It is also not clear how this statistic measures against the average Twitch streamer compared to the top 10%.
The move is a blow for Twitch activism a day after many were celebrating the “banning” of gambling on Twitch. Twitch stated it would be policing its own policies more strenuously and not allowing unlicensed gambling sites. It seems that that concession was merely something to soften the blow for a much more damning statement today.