Like many other big tech companies, Amazon is struggling reduce costs. Its Twitch division recently laid off 35% of its staff (that’s a little over 500) and has now made a decision reduce streamers earnings on Twitch Prime subscriptions.
As of June 3rd, Twitch is moving to fixed rate modelwhich determines Prime payouts based on how much a subscriber pays for Amazon Prime. “We believe this is the right shape for the program going forward, and we’re making this change to ensure that the monthly Twitch subscription available to Prime members is a sustainable long-term benefit for the Twitch community,” said CEO Dan Clancy.
According to Clancy, the value of earnings is falling in most countries by less than five percentbut it happens elsewhere to a steeper decline. For example, a Prime viewer subscription in the US will soon be worth $2.25 to the streamer, down from $2.50, a 10% drop. A UK viewer’s Prime subscription will soon be worth $1.80, while a subscription from a viewer in Turkey will net the streamer just nine cents.
Clancy points out that the Prime subscription is just one of several ways streamers can make money on the platform. He also announced some changes in the program Partner Pluswhich has to give smaller creators more reward. In particular, Twitch increased the reward share for creators. If a creator maintains at least 350 paid subscriptions for at least three months, they will earn 70% subscription share for the next 12 months (previously it was only 50%).
Another change is the fact that as of May 1, the platform is changing the Partner Plus program to two-level program Plus, which is based on a point system. A $5 basic subscription will be worth one point, a $10 level 2 subscription will be worth two points, and a $25 level 3 subscription will be worth three points. Gift subscriptions and Prime subscriptions do not count towards points.
When the streamer gets at least 100 Plus points for three consecutive months (points are always deleted on the first day of the month), he will get 60% revenue share from the subscription for the next 12 months. If they keep it 350 Plus pointsthe revenue share will increase to 70 %. According to Clancy, these changes will allow three times as many streamers to qualify for better revenue sharing. This should lead to a more significant increase in earnings for many of them.
Twitch has announced one more change – removes the $100,000 limit on the 70:30 revenue split for high-earning creators. A change introduced last year saw that split drop to 50 percent after a streamer reached $100,000 in subscription revenue. Nothing will change for the vast majority of creators, but it could help Twitch convince the most popular streamers to stay on the platform and not switch to rival YouTube or Kick.