Twitch plans to cut subscription revenue by 50% and content creators aren't happy In addition, the platform is looking for ways to incentivize streamers to display more advertising on their streams.
By Entrepreneur Staff Edited by Eduardo Scheffler Zawadzki
This article was translated from our Spanish edition.
Twitch , the platform for live broadcasts, has become a headache for other digital media such as YouTube and Facebook. The reason? Little by little it has been growing and stealing part of the advertising budget. But despite its success, Twitch has aroused the fury of streamers who use it by announcing changes to its business model.
According to Bloomberg , the platform plans to reduce the earnings streamers receive from subscriptions from 70% to 50% , in exchange for freeing them from the exclusivity to which they are now bound. In addition, Twitch is considering creating an incentive plan for content creators to include advertising in broadcasts to compensate for the reduction in subscriptions. Although streamers can currently include advertising, they often do not, as they feel that viewers stop watching when ads appear that interrupt broadcasts. The adjustments could be released in the summer of this year.
Given the news, several users expressed their discontent on social networks, arguing that the content is what moves Twitch and that is generated by them. Among those who spoke out were Alexelcapo, ElRichMC, BaityBait, Ibai Llanos, Parker Mackay and Zach Bussey.
The Twitch thing is crazy.
— Alexelcapo (@EvilAFM) April 27, 2022
It downhill without brakes. Although it was seen coming for a long time. It's a bubble and it's bursting. They also have no competition, they can do whatever they want.
We'll talk tomorrow in depth.
I've been on the 70/30 Twitch contract for about 6 years and can only say that the change here should be to move everyone from 50/50 to 70/30. I don't understand how there are creators who charge only 50% of what they generate. Has no sense.
– ElRichMC (@ElRichMC) April 27, 2022
Twitch: a bit of history
Launched in 2012 as a platform focused on broadcasting sessions of digital sporting events, it originated from Justin.tv , created by Justin Kan and Emmet Shear to broadcast live video game sessions.
Twitch was acquired by Amazon in 2014 for $970 million and quickly became one of the favorite tools for video game streamers. Today the platform has more than 140 million monthly active users and more than 107,000 different transmission channels. Some of the figures that were made on Twitch like DrLupo and TimtheTatman left the platform in 2021 to move to YouTube.
