A new report by Bloomberg suggests that Twitch, the Amazon owned streaming website, is looking at potential changes to payout amounts for streamers while also increasing the number of ads that viewers see. The Bloomberg report cites "people familiar with the planning" at Twitch.
This potential update suggests that Twitch will offer more incentives for streamers to run ads for their viewers, while also reducing the amount that these streamers earn from subscriptions. These changes, that may start as early as this Summer, could see revenue share from subscriptions moving from 70% to 50% for the top streamers. Another option is to "create multiple tiers and set criteria for how to qualify for each one."
This change could also possibly go alongside in Twitch's exclusivity restriction. This would allow streamers to move to other platforms like YouTube or even Facebook.
When streamers choose to run ads, they earn anywhere from $3.50 to $5 per 1,000 ad impressions depending on where the streamer is located. Furthermore, several streamers still have ads that are automatically played by Twitch over the course of a stream without the streamer's input or approval.
That payout rate has remained relatively unchanged for years until earlier in 2022. Twitch said that creators who stream 40 hours a month could receive $100 for running two minutes of ads per hour. That payout would increase with more ad minutes. A proposed change would "create a revenue-sharing arrangement, presenting a more lucrative model for streamers."
In short, all of these proposed changes reported on by Bloomberg would mean more ads for viewers and less subscription money for streamers.
