Twitch is rethinking its payment structure for streamers as the platform seeks new ways to boost its profits, Bloomberg has learned, citing sources close to the matter. One of the changes — which is currently under consideration — would decrease streamers' cut from 70% to 50%.
The sources add that the other option considers rolling out a tiered system and a set of criteria for how to qualify for each one. As a counteroffer, Twitch may be allowing creators to stream not only on its platform but also on YouTube or Facebook. The people say the updates are not finalized as they are still subject to change.
Although Twitch has over 50,000 creators in its partnership program, the platform has been struggling to meet its ad revenue expectations for a long time now. In 2018, it brought in about $230 million in ad revenue although the company was reportedly expecting to reach the $500 million mark. In the first half of 2019, Twitch made only $300 million against the $600 million expected.
Meanwhile, YouTube, one of Twitch's main competitors, is expanding a list of monetization tools for its creators after the company made $28.8 billion in ad revenue in 2021. Given that the San Bruno-based company pays its creators just a little over half of the ad revenue, YouTube might have fueled the creator economy with over $15 billion throughout 2021.
In January this year, Twitch faced criticism for insufficient efforts to combat mental issues as streamers spend an "unhealthy amount" of time broadcasting on the platform. But Twitch is denying all this allegations. saying that it is "developing targeted programming to support Twitch streamers with challenges like burnout, boundary-setting and other pressures that come with a career in online content creation."
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