Hey everyone -
Firstly, we want to thank SaltyWyvern for posting this request, and the 22k+ of you who have supported it with your votes, comments, and shares. We have been blown away by the response to this post, and have been carefully considering it for the better part of the last year. As there are actually two asks in this post, we will address them individually.
For the primary request of increasing the revenue share split to 70/30, the standard revenue share for subscriptions is 50/50, and we do not have plans to change the standard revenue share. We understand that this is disappointing for many of you, but we’d like to provide some reasoning behind the decision. To quote our President, Dan Clancy, from the blog we posted today:
“When we first established a 50/50 revenue share split, it was to signal that we’re in this together. You all do the amazing work you do to create great content, engage with your audience, and grow communities. On our side of the partnership, it’s our responsibility to make continuous investments in the products and people that make your growth possible.
As you probably heard by now, we’re in the middle of rolling out the largest change to payouts in years by cutting the payout threshold in half to $50. This is an important middle step that will help streamers put money in their pockets now, while getting us closer to our goal of same day payouts and lower thresholds.
Investments like these are paying off for streamers. Products like Prime Subs, Community Gifting, Hype Train, and the Ads Incentive Program, to name a few, have driven an increase of 27% more streamer revenue per viewer hour every year over the last five years. This means the same viewer hour now earns you three times more money than it did five years ago, on average. Our investments into your monetization options have already and continue to put more money into streamers’ pockets than 20% more subs revenue share would have.
Prime Subs often get lost in the conversation when it comes to revenue share. For Prime Subs, we pay streamers the same amount they’d receive for a regular subscription even though it is included as an added benefit of their Prime subscription. Combined with other monetization products, Prime Subs increase your effective revenue share by approximately 15%, to about 65% total. This number varies by streamer size and location, but subscription revenue share is not the full picture on revenue share for streamers.
Lastly, we have to talk about the cost of our service. Delivering high definition, low latency, always available live video to nearly every corner of the world is expensive. Using the published rates from Amazon Web Services’ Interactive Video Service (IVS) — which is essentially Twitch video — live video costs for a 100 CCU streamer who streams 200 hours a month are more than $1000 per month. We don’t typically talk about this because, frankly, you shouldn’t have to think about it. We’d rather you focus on doing what you do best. But to fully answer the question of “why not 70/30,” ignoring the high cost of delivering the Twitch service would have meant giving you an incomplete answer.“
As mentioned above, we recently started a rollout for reducing the minimum payout threshold to $50. Although this does not fully meet the request of $10-20 today, we will continue exploring ways to bring your hard-earned money to you faster, and more efficiently and aim to continue to lower the payout threshold in the future.
While we are declining this request, it’s still crucial to know that the primary value of sharing your feedback on UserVoice is to have your voices heard and suggestions considered. We will not always be able to provide the desired outcome, but it’s important to us to be transparent and open when we can, and we will be focusing on providing more consistent updates on UserVoice as time goes on.
