Twitch responded to criticism regarding the controversial decision to reduce the compensation for the most famous streamers, explaining that the previous system, which provided for a 70/30 split of revenues in favor of content creators it is not sustainable for the platform in the long run.
In September Twitch announced that the platform will give less money to the most followed streamers. It will actually adjust their share of revenue to that of average streamers by switching to one distribution 50/50thus putting an end to the favorable agreements guaranteed in all these years.
During TwitchCon in San Diego, chief monetization officer Mike Minton responded to criticism from the most followed streamers:
“We’ve looked at all possible solutions. Could we do it, could we offer a 70/30 split to everyone? The answer is no. It’s just not viable for Twitch in the long run,” Minton said.
He later explained that the fact that Amazon is behind Twitch doesn’t change the cards, as “Amazon expects Twitch to thrive financially as a ‘independent and sustainable company“.
“We recognize that we are involved in this together. All of you work hard to create amazing and engaging content, build communities, keep your communities safe, and our job is to build the tools that allow you to do that as we strive to make more money. The other fact is the cost of live streams. Delivering high definition, low latency video globally over the Internet requires high costs. This is our partnership. “” Minton said to content creators.
When asked how streamers might earn more with a less favorable revenue split, Minton mentioned the tools Twitch has implemented to monetize, including Amazon Prime subscriptions, gifting, hype trains, and advertising incentive programs.
In this regard, Minton was also questioned about advertising on the platform during the course of the live broadcasts and how these can ruin the vision as intrusive.
“Badly timed ads can be a bad experience,” he admitted. “Nobody wants to miss out on the action, nobody wants an ad to stand in the way of finding a new streamer. We know that a bad ad experience is not good for anyone. But it’s also true that many streamers rely on ads as a predictable source. significant of their Twitch revenue. ”
Minton also estimates that when streamers regularly have over 80 concurrent viewers, ad revenue accounts for 20-25% of total revenue for the platform.
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