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Twitch might cut streamer pay soon to make more money

Published Apr 27th, 2022 4:37PM EDT
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Image: Twitch

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New reports say that Twitch is considering cutting streamer pay to increase its own profits. Bloomberg reports that several people familiar with Twitch’s pay planning have made new claims about upcoming changes to the streamer payout system. The big changes, the report notes, may come in the form of a cut to the share of subscription fees that top talent on the site brings home.

New reports point towards Twitch cutting streamer pay

Twitch streamer holding a watch party
Top streamers may see a pay cut on Twitch soon. Image source: Twitch

Sources tell Bloomberg that Twitch is considering cutting streamer pay at the Amazon-owned live streaming site. It’s a move that would put top talent on the site down to earning a 50/50 cut for subscription fees. Currently, many top streamers bring home 70 percent of their subscription fees, with Twitch taking the other 30 percent.

The change would ultimately only affect the larger streamers who have that 70/30 split. However, the sources didn’t say if it would affect the 70/30 cut that many smaller partnered streamers get for their Tier 3 subscriptions. Bloomberg also says that Twitch is considering multiple pay tiers. Each of those tiers would have different criteria the streamer needs to meet.

It’s unclear if those tiers would be tied to overall income generated—e.g. subscriptions, bits, and ads—or if they will be tied to the number of subscribers a streamer has. Either way, Twitch cutting streamer pay is sure to cause a bit of a stir on the platform.

Pushing profits

pile of cash
A pile of money is shown. Image source: bartsadowski/Adobe

If Twitch does indeed cut streamer pay, it would see the platform taking home a larger cut of the profits. However, Bloomberg’s sources say that Twitch is also considering pushing the use of advertisements more. Partnered streamers can already run ads during their streams. However, with a cut to subscription payouts, some streamers may be inclined to run advertisements more often.

The more will ultimately boost Twitch’s share of the profits, though how much is ultimately unclear. Many of the top streamers on the platform have access to that current 70/30 split. However, there’s no definitive number of just how many that change will affect. At least, not that I could find.

Reports of Twitch cutting streamer pay also come at a strange time for the live streaming site. Despite seeing a good deal of viewership growth throughout the pandemic, Twitch has been at the center of quite a bit of controversy over the past year or two. Additionally, we’ve seen some massive names leaving the site, like DrLupo and even TimTheTatman.

The saving grace for this change, though, might come with decreased exclusivity restrictions. The sources also told Bloomberg that Twitch is considering reducing those restrictions. As such, streamers would also be allowed to stream on competing sites like YouTube. That could potentially open another door for creators to improve their income.

Josh Hawkins has been writing for over a decade, covering science, gaming, and tech culture. He also is a top-rated product reviewer with experience in extensively researched product comparisons, headphones, and gaming devices.

Whenever he isn’t busy writing about tech or gadgets, he can usually be found enjoying a new world in a video game, or tinkering with something on his computer.

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