Twitch Is Considering Revamping Creator Payments To Drive Revenue

Source: Twitch

Twitch is considering revamping creator payments. According to a report by Bloomberg, the streaming service is considering changes to how it pays creators to drive revenue:

• It’s considering incentivizing creators to run more ads.

• It is considering charging a higher subscription fee for some of its most prominent creators, which would result in the platform taking a 70 percent cut of subscriptions as opposed to the current 50 percent. There is also the possibility that it rolls out multiple payout tiers with criteria for creators to meet to qualify for higher payouts.

• Twitch might offer to release partners from exclusivity restrictions in exchange for them taking a lower payout.

Currently, Twitch is at an inflection point. As the Amazon-owned platform works to increase profits, it has a number of decisions to make that will impact its business and its relationship with creators in the long run. Twitch taking a bigger cut of creators' subscriptions won't sit well with creators, considering how many of its competitors have lower subscription fees. Though releasing partners from exclusivity would benefit big streamers since they could stream on other platforms, this would affect a smaller group of creators.

The streaming ecosystem is led by Twitch today, but if it cannot balance revenue and relationships with streamers, it will lose creators to other streaming platforms, such as YouTube or Facebook. Let the streaming wars continue.