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In a strategic move aimed at empowering content creators on its platform, Twitch has unveiled plans to revamp its revenue-sharing model. The popular streaming site, a subsidiary of tech giant Amazon, will now allocate a greater share of subscription earnings to content creators.
Traditionally, Twitch operated on a 50/50 revenue split between the platform and creators after deducting fees. However, the revamped system promises a significant boost for streamers, particularly those with a subscriber base exceeding 100. Under the new model, these creators will see their share increase to 60% of the subscription revenue.
Earning through fan subscriptions, which start at £3.99 per month in the UK, has been a key revenue stream for Twitch streamers. The move to redistribute a higher percentage of these earnings is expected to benefit a broader range of content creators, moving away from the exclusive arrangements that favored only the most prominent streamers in the past.
This announcement follows closely on the heels of a broader organizational shift within Twitch's parent company, Amazon. A mere two weeks ago, Amazon disclosed plans to downsize Twitch's workforce by more than 500 employees, constituting a third of the platform's total workforce.
The decision to restructure the revenue-sharing model is likely a response to ongoing demands for greater transparency and fairness within the streaming industry. As the competition for viewers intensifies, platforms are recognizing the need to foster a more equitable environment that rewards creators across different tiers of popularity.
Twitch's commitment to sharing a larger portion of subscription revenues signifies a departure from previous practices and could reshape the dynamics of content creation on the platform, providing a more inclusive financial framework for its diverse community of streamers.
