• by Colin Kirkland , January 29, 2024

Twitch announced this week that it is making changes to its monetization systems.

In an effort to make the platform more financially sustainable, the Amazon-owned live-streaming service is expanding its Partner Plus Program, eliminating the $100K cap on its 70/30 revenue split for major creators, and bringing a global fixed rate for its Prime Gaming subscription payout model.

Twitch launched its Partner Plus program in 2023, making partners who manage 350 paid subscriptions for three consecutive months eligible for a 70 /30 revenue split for the following year. Starting May 1, Twitch will open up the program to affiliates as well as partners while introducing a new 60/40 revenue split tier encompassed by a point system that determines which payout split a creator qualifies for.

Tier 1 subscriptions, which cost $4.99, are worth one point, while Tier 2 subscriptions ($9.99) are worth two points, and Tier 3 subscriptions ($24.99) are worth six points. Twitch says that this new system, which it is calling the Plus Program, “will allow three times as many streamers to have premium net revenue share rates.”

The streaming service has also eliminated the $100,000 cap on its 70 / 30 revenue split for its highest earning creators, stating in a blog post that the change will be made effective immediately for all streamers, including those in its Partner Plus Program.

Twitch CEO Dan Clancy wrote that the cap “served as a disincentive” to creators who are majorly successful on the app who have begun looking to competing platforms for higher payouts.

Per the monetization changes, Twitch’s Prime Gaming subscription will also be affected. Since 2016, Twitch has offered Amazon Prime or Prime Video members a monthly token to use to subscribe to their favorite Twitch channels. Smaller streamers received a 50 / 50 revenue split and larger streamers a 70 / 30 split, which has always been based on the creator's local currency.

Starting June 3, Twitch is introducing a flat rate based on the subscriber's country. The company admits that this will result in a pay cut for streamers, stating that “while any decrease will feel disappointing, the difference between what streamers receive today for a Prime Gaming subscription and what they will receive after the change to fixed rates is less than 5% in the vast majority of countries.”

In the United States, a Twtch Prime subscription will soon pay $2.25 instead of $2.50.

“We believe this is the right structure for the program going forward and are making this change to ensure that the monthly Twitch subscription available to Prime members is a long-term, sustainable benefit for the Twitch community,” Clancy said.

At the start of this month, Twitch laid off 500 people –– the equivalent of one third of its staff –– with Clancy announcing that the company is “not profitable.”