Twitch, the popular video game livestreaming service, is under scrutiny after plans to take a bigger cut from content creators were brought to light. And if that wasnt enough, they plan to push for more advertisements during streams.
According to a recent report by Bloomberg, Twitch has been under pressure by parent company Amazon to increase profitability. In response, the platform is considering lowering the 70% cut that their top content creators receive to 50%. They also claim that Twitch will be looking to incentivize streamers to run more advertisements during broadcasts, including plans that could potentially double ad revenue depending on impressions and location. One model is described as creators who stream at least 40 hours a month could receive $100 for running two minutes of ads per hour.
Its worth noting that for your standard partnered streamer, a 50% cut is common. But for the larger and more prolific streamers, its not uncommon for them to be given more appealing deals of 70%. The larger number of subscriptions and ads from their views would offset the smaller take that Twitch to keep.
It comes as no surprise to just about anyone that these moves are not being seen favorably by the general public. Twitch has been the target of controversy for a long time now, but its methods of monetization have been a focus since it was acquired by Amazon in 2014. Many streamers and users of the platform have expressed a discontent with the services rumored plans, even those that may not actually be affected by the change.
Twitch reported over 2 billion users in 2021, with 2.3 billion in revenue that same year. The idea that Amazon feels the need to pressure them for greater profits seems greedy in a way that only a mega corporation known for the worst workplace conditions in America could pull off.
We think thats where the frustration lies. How can one of the richest companies in the world, run by the richest man in the world, look at one of the most successful livestreaming platforms in the world and say they arent profitable enough?