Streaming platform is currently looking at ways to increase its profits by paying streamers less.
The dominant streaming platform as of right now, Twitch is looking at new ways to alter the partner program and its method of paying streamers.
, for $970 million, and in the efforts to turn a profit on the purchase even senior staff members have become disillusioned enough to leave, let alone the content creators themselves.
Twitch currently pays members of its partner program 70% of the subscription fee to their channel, taking 30% for themselves. However, the platform is considering ending this in favour of a 50/50 split, putting livelihoods at risk as Twitch also pushes for more advertising.
More ads on Twitch
Twitch currently runs a pre-roll ad when loading a stream and will periodically play them again while you watch. Streamers can also control when adverts happen.
That means that in some cases the current method for displaying advertising is only partially controlled by the streamer. Those who might not have set things up properly will often have members of their audience cut out, as they’re suddenly forced to watch an advert during a big moment.
With the 70/30 split potentially coming to an end, streamers would have to run more ads to compensate, which is part of Twitch’s internal plans according to Bloomberg. A new model would be implemented to allow streamers to earn more from advertising, maximising Twitch’s profits at the cost of viewers’ patience.
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
Twitch’s push for more advertising follows on from other major tech companies like , , and investigating how to begin advertising on their services.
Twitch also recently launched 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 and subscribed – would presumably be placed in higher tiers and earn more.
To go along with this tier system, any partner that is currently only allowed to stream on Twitch, as per their contract with the platform, would be released and allowed to explore streaming on alternatives like YouTube and Facebook.
Competitors to Twitch
Streaming in multiple locations would be a massive boon for people who are currently trapped by Twitch’s restrictions. Google’s currently offers a 70/30 split on nearly everything, including super chats, and the service’s built-in donation function. have brought in millions over the years individually from this.
This could also open the door to becoming a destination place to watch livestreams, though the platform has a 50/50 split on any earnings and often eschews direct donations in favour of ‘gifts’, like virtual roses that can be exchanged for money.
However, the platform currently seems to be emphasising makeshift teleshopping in its livestream section, allowing viewers to purchase anything from headphones, consoles or clothes from streamers advertising them.
As of right now though, Twitch rules the roost. A select streamers have maintained their audience after moving to other platforms, but in most cases they’ve been forced to start their online careers almost from scratch.
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