Twitch plans changes with more ads and less pass-through to streamers

Executives understand that Twitch has reached the level of leadership and must change the focus, aiming at financial sustainability

Information released by Bloomberg generated a great uproar in the content producers of Twitch. According to the report, Amazon plans to make changes to the platform that could bring even more harm to streamers. Twitch wants to decrease the pass to content producers and increase the number of ads during broadcasts.

The article states that it heard people from the team who pointed out the changes. Twitch is reportedly looking to reduce the pass-through to partner streamers from 70% to just 50%. This means that the influencer would receive only half of the amount that their subscribers pay on the platform. Also, they would be thinking about creating sub levels, just like YouTube members work.

With this reduction in the amount passed on, Twitch would give up the exclusivity term for partner streamers. Thus, they would be free to broadcast on other platforms such as YouTube and Facebook Gaming.

Increase in ads

In addition to the subs, content producers receive a value according to the amount of advertisements in the lives. The leaked information points out that the new model for this payment would be more profitable for streamers.

Ads are controversial on the platform because they interrupt live programming. Viewers often complain that they miss key moments of a streamer’s gameplay, and artists say the ads can alienate audiences and hurt their metrics.

The article points out that the changes still undergo analysis by the internal team and may undergo changes. The explanation is that the changes occur in the month of June.

Twitch is an expensive business for Amazon. Jeff Bezos’ company bought the broadcast platform in 2014 for $970 million and has since prioritized consolidation of the tool.

Now, executives understand that Twitch has reached the level of leadership and must change the focus, aiming at financial sustainability. Therefore, they bet on more ads.

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Source: Bloomberg

About Raju Singh

Raju has an exquisite taste. For him, video games are more than entertainment and he likes to discuss forms and art.

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