Twitch is implementing changes in the compensation structure for streamers receiving earnings from Prime subscriptions. Despite a reduction in payouts from Prime subscriptions, many content creators may see increased income due to other alterations in revenue sharing.
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A man on his cellphone walks past an advertising board for Twitch, the official Livestream Partner of E3, during the 2016 Electronic Entertainment Expo (E3) annual video game conference and show on June 14, 2016 in Los Angeles, California.
Revamping Compensation Structures for Streamers
Twitch is revamping the compensation structure for streamers who receive earnings from Prime subscriptions. Despite a reduction in payouts from Prime subscriptions, there is potential for many content creators to experience an increase in income due to adjustments in revenue sharing.
Commencing on June 3, Engadget reported that Twitch is shifting to a fixed-rate model for Prime payouts, dependent on the location of a Prime subscriber and the cost of their Amazon Prime subscription.
This strategic change is aimed at establishing a sustainable and long-term benefit for the Twitch community, as emphasized by CEO Dan Clancy. He notes that in most countries, the payout rate is experiencing a decrease of less than 5%, but there are more substantial declines in certain regions.
For example, a Prime subscription from a viewer in the US will soon translate to $2.25 for a streamer, marking a 10%reduction from the previous $2.50. Meanwhile, a Prime sub from a UK viewer will soon be valued at $1.80, and for a viewer in Turkey, it will only contribute nine cents to the streamer.
Highlighting that Prime subscriptions are just one avenue for streamers to earn on the platform, Clancy emphasizes the presence of other income streams such as tips and regular paid subscriptions.
Changing Partner Plus Program
Additionally, he unveiled changes to the Partner Plus program in a new blog post, aimed at providing smaller creators with a more significant share of the earnings. Twitch is simplifying the process for creators to benefit from enhanced revenue sharing.
Previously, they were required to maintain a minimum of 350 paid subscriptions for at least three months to qualify for a 70% share of subscriptions over the next 12 months, up from the previous 50%.
Commencing on May 1, the platform is introducing a revamped Partner Plus, transforming it into a two-tier Plus Program based on a points system. Under this system, a basic $5 subscription accrues one point, a $10 Tier 2 subscription accumulates two points, and a $25 Tier 3 subscription contributes three points.
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Notably, Forbes reported that Gift and Prime subscriptions do not count towards points, but eligible streamers will benefit from an enhanced revenue share for gifted subscriptions.
Streamers achieving a minimum of 100 Plus points consistently for three consecutive months will qualify for a 60% share of subscription revenue over the next 12 months. Furthermore, maintaining 350 Plus points elevates the revenue share to 70%.
According to Clancy, these adjustments aim to enable three times as many streamers to qualify for improved revenue sharing, potentially leading to significant earnings increases. The changes also provide a more gradual transition for streamers hovering around 300-350 points, preventing a drop back to a 50% revenue share.
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