Twitch, the popular game streaming platform, has announced a decision to return to the 70/30 revenue split policy for some streamers.
This move, which is wrapped up in a new program titled Partner Plus, has sparked a debate around its stringent qualification requirements and whether it truly benefits creators.
The Return of the 70/30 Split: A Brief History
For clarity, until September of last year, Twitch used to take a 30% cut from Partner streamers’ income, with streamers earning the remaining 70%.
This agreement was part of an exclusive contract in which Partner streamers pledged to only stream on Twitch.
Affiliate streamers, who were associated with Twitch but not under exclusive contracts, adhered to a 50/50 split.
However, in a surprise shift, Twitch moved all its streamers, including Partners, to a 50/50 split last September.
As a tradeoff, it relaxed its exclusivity clause for Partners, allowing them to stream on other platforms but not to simulcast.
This change wasn’t well-received, and rival platforms like Kick and Rumble saw an influx of creators and viewers.
Introducing the Partner Plus Program: Opportunity or Obstacle?
With the new Partner Plus program, Twitch is offering the 70/30 split again.
However, this program is only available to streamers who meet specific qualification criteria and it caps the 70% payout at $100,000.
Upon reaching this revenue threshold, streamers revert to the 50/50 split.
To qualify for the Partner Plus program, Partners must maintain at least 350 recurring paid subscriptions for three consecutive months.
Once achieved, they are automatically enrolled for the next 12 months, even if their subscription count drops below the threshold during this period.
Intriguingly, the criteria exclude Amazon Prime and gift subscriptions from counting towards the 350-subscription requirement.
This policy implies that viewers cannot aid their favorite streamers in attaining Partner Plus status through gifted subscriptions.
Ambassadors Consulted, But Concerns Loom Large
Twitch has stated that it designed the Partner Plus program in consultation with ambassador streamers.
However, critics have emerged from the streamer community, arguing that the 350 subscription target is “unobtainable” and maintaining it yearly is an undue burden.
Brandon Freytag, Chief of Creator Monetization at gaming management/advisory firm Loaded, notes that the program “feels like a positive step” supporting the “middle class” of streamers.
However, he raises concerns about its potential effectiveness.
With many questions still unanswered, creators may be wary of promoting Twitch Prime and gifted subscriptions, as these don’t count towards the thresholds.
They may also ease off on encouraging subscribers after they hit the $100k revenue mark.
“There was a 70/30 split on sub revenue for everyone with no cap. It was fairly straightforward,” says Freytag.
The new structure, in his view, presents creators with an “accounting challenge” in figuring out what counts towards their revenue thresholds.
While the move from Twitch to revert to a 70/30 split is viewed as positive by some, its implementation and restrictions may end up causing more confusion than clarity.
The platform’s attempt to balance its business interests with the needs of its content creators continues to be a complex task.