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How much do streamers earn on Twitch? The new pay structure explained

How will streamers respond to Twitch's announcement of a change compensation policies?


If you saw that your favorite Twitch streamer has been complaining recently, it’s most likely regarding the fact that Twitch posted an update that changed their pay structure—and not in the favor of streamers. The decision has caused outrage in the streaming community with many calling it the death of the platform because there are alternatives to the streaming giant. But before we get into it, let’s go through exactly what Twitch’s update was, what the new pay structure will look like and when it will come into effect.

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What is the new pay structure for Twitch streamers?

Image via Twitch

Dan Clancy, the President of Twitch, addressed streamers in a blog post, the aim of which was to update them on how money will be made on the platform going forward. In the blog post, Clancy acknowledged how much they care about the streamers on the platform before announcing that a number of streamers would be losing 20% of their income. Most Twitch streamers are earning a 50/50 split for their revenue made from subscriptions. Some Twitch streamers were signed up to what Twitch calls a “premium deal,” allowing a 70/30 split. However, they have gradually phased that out for new streamers and the blog has confirmed that they will be phasing it out for existing streamers above the $100k mark.

Streamers still on the 70/30 split will retain that split for the first $100k and move to the 50/50 split after that first $100k. There is one caveat to the change, and that is it will not be put into practice right away. The changes will come into full effect after June 1, 2023. As for the smaller streamers who have been asking to increase their revenue, well they are still stuck on the 50/50 model. So the new changes really only affect the larger streamers on their platform, keeping the split as low as it was previously for everybody else.

It is not as if Twitch and Amazon are the only streaming giant in town, as YouTube has been making plays to have more of a streaming presence for some time. To make sure that Twitch streamers understand how much Twitch has done for them in the past, they also mention that they have previously increased the amount of ad revenue a streamer makes and that they have implemented more ways of promoting viewers to pay their streamers. The blog also highlights that Twitch is a breeding ground community, right after spitting in the face of that very same community.

Of course, the changes will not be implemented until June 1, 2023, which incidentally should be plenty of time for some of the big streamers to look at their contract expiry dates and make plans to depart the platform. With all the outcry and threats to leave it seems doubtful that Twitch will not try to do something to quell the outrage, which may even lead to a reversing of their decision. But we should know more in the months to follow, or maybe even sooner as it does seem like prominent Twitch streamers are readying their lifeboats already.