Even though new platforms offer much higher splits, Twitch, an Amazon-owned live-streaming platform, is sticking with its controversial 50/50 split for subscriptions. One of Twitch’s competitors, Kick, is gaining popularity with a 95/5 sub split, but its ties to the gambling site Stake have led to accusations that it doesn’t follow community rules. Even though Twitch’s split may seem small, Chief Monetization Officer Mike Minton and Chief Product Officer Tom Verrilli have both explained the company’s position.
Minton told The Verge that he knew streamers didn’t like the 50/50 split, but Twitch is committed to increasing the amount of money a streamer makes by making its monetization products better and building new ones. Instead of going for a higher subscription split like YouTube’s 70/30 split, Twitch is focusing on making the platform as a whole a more profitable place to stream. This is done through new products and sponsorships for streamers.
Is Twitch Making a Mistake with Its 50/50 Sub Split?
Minton gave the ad incentive program as an example. This program gives streamers a pre-agreed payment if they stream for a certain number of hours and run a certain number of ads. Minton says that, “We didn’t expect the ad incentive program to be as well received and used as it was. So it’s clear that streamers now see the value in running ads.”
Verrilli said that the focus is on helping streamers grow their communities, and he pointed out a feature called “Guest Star” that is still in the works. This feature is called a “integrated tool that makes it easy for streamers to feature other creators or their viewers during a livestream.” Verrilli thinks it’s the “next step” for chat on Twitch.
Due to its 50/50 subscriber split, some streamers have already left Twitch for other platforms. However, Twitch‘s dedication to new products and sponsorships for streamers may help it keep its livestreaming crown.
Meanwhile, in other news, Twitch will fire 400 people this week. At this point, it is not clear if these layoffs have anything to do with Twitch’s commitment to its 50/50 sub split or if they are part of a larger plan to cut costs.
Twitch’s commitment to its 50/50 sub split may be controversial, but the platform is focused on providing innovative products, sponsorships, and community growth to make it the most lucrative place for streamers. What do you think about Twitch’s stance? Share your thoughts in the comments section below.
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