Twitch, the popular livestreaming platform, has unveiled a major revenue-sharing overhaul in an effort to better support its creators. Starting May, under the new Twitch Plus program, streamers with over 100 paid subscribers will receive 60% of the subscription revenue, a significant increase from the previous 50% split.
This move comes on the heels of recent layoffs at Twitch, with parent company Amazon cutting more than 500 jobs, accounting for a third of the platform's workforce. Twitch CEO Dan Clancy acknowledged the platform's struggle to turn a profit, revealing that, despite paying out $1 billion to streamers in 2023, the site remains unprofitable.
The revamped system aims to benefit a broader range of streamers, with an estimated three times as many creators now receiving improved revenue shares. The 70/30 split for top-tier users (those with over 350 paid subscribers) remains unchanged, and the threshold for higher payouts has been adjusted to 300 paid subscribers.
Twitch is also doing away with the previous practice where top earners experienced a reduction in their revenue split from 70/30 to 50/50 after hitting $100,000 in earnings. This adjustment may be an attempt to retain and attract successful creators, especially considering the rising competition from platforms like Kick, which offers an impressive 95% revenue share to streamers.
In comparison to other platforms, Twitch's new model seems more competitive. YouTube, for instance, provides a 70% revenue share to YouTubers from their subscriptions but retains 30% of fan donations. Meanwhile, Kick has lured away notable Twitch personalities with its 95% revenue share.
The changes at Twitch also coincide with the broader landscape, where social media platforms are vying for content creators' attention. Notably, Twitter's X platform has entered the fray by offering substantial shares of its advertising revenue to attract creators. The announcement aligns with a recent revelation from top YouTuber MrBeast, who disclosed earnings from X, underscoring the ongoing battle for content creator loyalty and platform dominance.