More ads and less money for streamers with the Twitch partner program upgrade

Twitch is currently exploring ways to increase profits by paying streamers less, according to a recent report.

The most popular streaming platform Twitch at the moment, is experimenting with new strategies to modify its partner program and pay streamers.

Amazon bought Twitch for $970 million in 2014. But some people who work for Amazon, like senior staff members, are not happy with the purchase. Some people who make videos for Twitch have also left because of this.

Twitch currently takes 70% of the subscription fee for channels in its partner program, and keeps 30% for themselves. However, the platform is considering changing this so that it would take 50% of the subscription fee and give 50% to the channel. This could put people’s livelihoods at risk as Twitch also pushes for more advertising.

More ads on Twitch

When you first load a stream on Twitch, the site plays a pre-roll ad. When you’re watching, they’ll play them again periodically. Advertisements can also be avoided by streamers.

This implies that the streamer has only partial control over how advertising is presented in some situations. Those who may not have configured things correctly will frequently have their audience members removed, as they are suddenly compelled to watch an advertisement during a key stage.

With the 70/30 split potentially coming to an end, streamers would have to run more commercials in order to make up for it, which is part of Twitch’s planned strategy according to Bloomberg. A new method will be implemented to allow streamers to make more money from advertisements while still maintaining Twitch’s profits.

The money paid out to streamers can be as little as $3.50 for 1,000 ‘impressions’, i.e. for how many people saw the advert, creating a brewing dilemma online.

Twitch’s push for more advertising follows on from other major tech companies like Netflix, Microsoft, and Sony investigating how to begin advertising on their services.

Twitch also recently launched gift cards in the UK, Australia, and Canada.

New Twitch partner tier system

Also planned for Twitch is a potential new partner system, updating the current one after nearly a decade of use.

Rather than have the nearly 52,000 streamers all on the same level, those who are bound to bring in more cash for the platform overall – notably the top followed and subscribed – would presumably be placed in higher tiers and earn more.

With this tier system, any partner who is restricted to streaming just on Twitch as per their contract with the platform would be released and allowed to stream on other platforms such as YouTube and Facebook.

Competitors to Twitch

For individuals who are presently trapped by Twitch’s restrictions, streaming in multiple locations would be a major help. Google’s YouTube currently offers a 70/30 split on nearly everything, including super chats, and the service’s built-in donation feature. Individual Streamers from Hololive have brought in millions of dollars over the years via this method.

It may also provide the opportunity for TikTok to become a live streaming destination, but the platform has a 50/50 cut on any profits and frequently shuns straight donations in favor of ‘gifts,’ such as virtual roses that may be exchanged for cash.

Bloomberg: Twitch is considering changes to its partner program

Currently discussed ideas (not finalized):
– incentives for more ads
– new rev split (70% -> 50%)
– new tiers system
– no more exclusivity
– changes could be implemented this summer

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— Nibel (@Nibellion) April 27, 2022

However, the platform now appears to be emphasizing informal teleshopping in its Livestream section, allowing viewers to buy anything from headphones, consoles, and clothing from streamers advertising them.

As a result, Twitch has established itself as the industry leader. Select streamers have been able to retain their audiences after moving to other platforms, but in most situations they’ve had to start their internet careers from scratch.

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