Twitch Cuts Off Streamers' Unlicensed Gambling Gains While Planning to Limit Top Creators’ Revenue 1

Twitch Cuts Off Streamers’ Unlicensed Gambling Gains While Planning to Limit Top Creators’ Revenue

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Twitch Cuts Off Streamers' Unlicensed Gambling Gains While Planning to Limit Top Creators’ Revenue 2

Twitch Limits Top Creators’ Revenue, Bans Some Gambling Sites

Though some in the Twitch community like streamer Trainwreck noted the streaming platform is not totally addressing the problem at hand. ItsSliker was a self-admitted sports gambling addict. Noting that Sliker’s problem started with Counter-Strike, which has been heavily cited for its addictive quality, shows just how gambling has seeped into so many aspects of online culture.

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Gizmodo reached out to Twitch to ask if it plans to address other problems with gambling on Twitch, but did not immediately hear back.

But the hits keep on coming. Dan Clancy, company president, wrote on Wednesday they were resisting calls to move streamers to a 70/30 revenue split while also limiting how much money some of the top streamers on the platform make. He wrote the vast majority of Twitch streamers share 50% of their net revenue with Twitch, but that over the years some of the larger streamers were offered “premium subscription terms” that gave them 70% of the total net revenue from subscriptions and other payments.

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Starting in June, 2023, Clancy said streamers still on the premium deal would see the first $100,000 earned through subscription revenue still split 70 to 30 with Twitch. However, any revenue earned above $100,000 will be split 50/50.

Past reports had hinted that Twitch was planning to cut payouts to top streamers, so this latest announcement isn’t too surprising. What’s more interesting is Clancy’s stated reason for the change.

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“We don’t believe it’s right for those on standard contracts to have varied revenue shares based on the size of the streamer,” the Twitch president wrote, adding that it shouldn’t affect 90% of those accounts with premium subscription terms.

Though Clancy acknowledged that many users were using feedback pages to beg for a full 70/30 split regardless of the size of their channel, but the company president tried to push revenue generators like the ads incentive program which he claimed has already increased overall streamer revenue.

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The announcement comes as Twitch is feeling the heat of more competition with platforms like YouTube and TikTok which have tried to promote their own streaming services. Revenue made from TikTok streams is split 50/50 with the creators. Back in 2020, Google-owned YouTube poached three top streamers from Twitch to have them stream exclusively on its platform. Though it doesn’t seem like Twitch is losing out all too much. According to BusinessofApps, Twitch still remains at the top of the pile for quarterly hours watched compared to YouTube Gaming and Facebook Gaming as of 2021 maintained 9 million accounts that streaked at least once a month. The company claimed $2.6 billion revenue in 2021 which mostly came from advertising dollars.