Gaming Industry Might See More Twitch Streamers Migrate to Rival Platforms as a New Pay Cut Is Implemented

Twitch is reportedly cutting the revenue share of their platform to make more money. It has been known for a while now, from several people familiar with Twitch's payment system, that the company is coming up with a new payment system for its streamers.

Additionally, it has been reported that these new payment systems will have big changes, which may come in the form of a cut to the share of subscription fees that top talent on the site brings home.

However, Twitch streamers have collectively voiced their concerns on social media, and they are not having it.

Reaction of Twitch Streamers in Massive Pay Cut

Many streamers responded by claiming that the proposed changes would make their lives more difficult and could even compel them to switch to other platforms.

Others, on the other hand, have pointed out that Twitch faces little genuine competition in the streaming arena, allowing the corporation to collect money in whatever way it sees fit. Twitch streamer Hassan Piker also agrees with this statement.

Piker is one of Twitch's most-viewed and most-subscribed-to streamers. Piker described it as crazy that Twitch did not consider its present income splits profitable enough but that the network's top personalities did not have a viable alternative platform to use.

Twitch streamer Jericho tweeted: "Subscriptions are more important to the life of every streamer than almost any other utility Twitch offers and to touch the split is to financially devastate and potentially remove thousands of full-time creators from your platform it [sic] immediately," said Twitch streamer Jericho.

Twitch earns profit from subscriptions from their streamers. On average, when viewers subscribe to the channel of their certain favorite streamer, they can do so for as little as $5 a month, with Twitch then sharing a portion of the money with content providers.

It is estimated that the Amazon-owned streaming service has approximately 51,000 persons participating in its partnership program, according to the data portal TwitchTracker.

Even while Amazon does not provide specific income data for Twitch, the company as a whole has been hurt by a slowdown in growth. Amazon's most recent earnings report revealed that, despite revenues increasing by roughly $8 billion year-on-year in Q1, analysts were still concerned about the company's lower-than-expected Q2 expectations.

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Twitch Cutting Off Revenue of Their Streamers

It is being considered whether or not to reduce streamer compensation at the Amazon-owned live streaming website Twitch. It's a change that would reduce the earnings of top performers on the site to a 50/50 split of subscription prices. The current situation is that many top streamers take home 70% of their subscription money, with Twitch taking the remaining 30%.

According to BGR, the move would only have an impact on the larger streamers who have a 70/30 split. However, the company has not yet clarified information on whether or not it will have an impact on the 70/30 split that many smaller partnered streamers receive for their Tier 3 memberships.

Twitch is also debating whether to introduce numerous subscription tiers for streamers, each with its own set of qualifications to meet in order to qualify for each.

Many Twitch channel owners would undoubtedly object to the introduction of many tiers and a reduction in income share, which is why Twitch is also exploring the elimination of exclusivity rules, which can now prevent streamers from utilizing competing platforms like YouTube Gaming and Facebook Gaming.

One additional adjustment that is believed to be under consideration is adding more advertisements related to incentives for streamers who integrate them into their channels and regular streaming sessions.

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