Twitch plans to cut streamer pay to boost profits

Image from article titled Twitch reportedly considered cutting streamer pay to boost its own profits

Photo: Martin Office (Getty Images)

2022 is shaping up to be a tough year for content creators and sellers trying to make a living from major tech platforms. Sellers on Amazon and Etsy are already facing increased fees and now further pay cuts could be making their way to Twitch.

A new Bloomberg report Citing people familiar with Twitch’s salary planning claims, the company wants to incentivize streamers to run more ads in addition to considering reducing the share of subscription fees allocated to performers. Specifically, the site’s top streamers would see their share of subscriptions drop by 70%. at 50%, according to Bloomberg. The company is also planning to introduce multiple pay tiers with different criteria required to qualify for each. Altogether, these changes are intended to increase Twitch’s profitability, although this may come at the expense of the most active users in their community.

Twitch did not immediately respond to Gizmodo’s request for comment.

On the other hand, sources speaking with Bloomberg said the company may consider relaxing its exclusivity restrictions, which would allow creators to stream on other platforms. and potentially earn additional income there as well.

The tentative monetization considerations come in a stream period at Twitch. On the one hand, the company is benefiting from a pandemic-induced increase in viewership. According to data from GlobalWebIndex, some 24% of US internet users between the ages of 16 and 64 said they started watching more live streams during the pandemic. seen by Insider Information. The other hand however, even with this rise in eyeballs, Twitch is simultaneously reeling from what Bloomberg calls a massive “exodus” of employees disappointed with the management of the company. Some 300 employees are said to have left Twitch last year, with another 60 in the first three months of 2022. SomThe best creators are also gone. Over the past year, the two Dr Lupo and TimTheTatmantwo prominent streamers, left the site for rival YouTube.

Twitch streamers aren’t the only ones bracing for financial pressure from their Big Tech bosses.

Earlier this year, Amazon announced it would add a 5% “fuel and inflation surcharge” to third-party sellers who use the company’s fulfillment centers to offset rising costs. In a notice to sellers consulted by The Associated Press, Amazon said rising hourly wages, construction costs and new hires during the pandemic were all to blame for the increased price hikes. Still, Amazon wasn’t really struggling as a business during the pandemic, but. In the first quarter of 2021, the company post a record turnover of 108.5 billion dollars, which represents almost triple its income compared to the same period the previous year.

At Etsy, sellers continued hit and launched a digital boycott over what they saw as exorbitant increases in selling fees. Etsy recently tried to increaseto 30% seller transaction fees, which would actually increase seller fees by 5% at 6.5%


Comments are closed.