Twitch, the widely popular streaming platform, has recently been in the spotlight not for its engaging content, but for its financial sustainability. Dan Clancy, the CEO of Twitch, made a significant announcement earlier this month, which has gotten everyone talking. In an effort to steer the platform towards profitability, a series of layoffs were instituted, and these tough measures were just a hint of the changes that were about to unfold.
It’s been revealed that Twitch is shaking things up, especially when it comes to how streamers will be earning their income. A crucial element of this change is the adjustment to the Prime subscription service, which is known for providing benefits to both the subscribers and the streamers. Unfortunately, it’s not good news for everyone, as the new changes mean that streamers will be receiving a reduced amount of money from these subscriptions. This modification is set to impact streamers differently across the globe, but it seems that those in Spain and Latin America will feel the brunt of these adjustments.
For those content creators who work tirelessly to entertain and engage their audience, this news might be a bit worrying. In Spain, for instance, streamers will now earn $1.55 from each free Prime Gaming subscription, which roughly converts to 1.42 euros. It’s important to note, however, that taxes will take a bite out of this already reduced amount. To put things into perspective, streamers used to earn $1.9 per subscription, but after taxes, their take-home amount was already less. With the new change, the actual money streamers keep could shrink even closer to just one euro per Prime subscription, rather than the more desirable one and a half euros.
These changes are stirring conversations on social media as well. TwitchES shared an announcement on Twitter that, starting May 1, partners and affiliates will have the opportunity to earn a higher commission on subscription revenue through an expanded Socio Plus program. Despite this, there is still concern across the streaming community about the overall reduction in subscription revenue rates.
Looking beyond Spain, the alterations to Prime subscription rates vary quite significantly around the world. Latin American countries are seeing some of the more considerable reductions, with Argentina, Chile, and Mexico earning streamers only $0.95 for each Prime subscription. Strikingly low is Colombia’s new rate at $0.75 per subscription. By contrast, streamers in the United States seem less affected by these updates, as they continue to earn a more substantial $2.25 per Prime subscription.
However, this isn’t the case everywhere. Countries such as Türkiye are confronting an extreme decrease in Prime rates, plummeting to a mere $0.09 per subscription. This rate is so low that it almost seems laughable and raises speculation about whether this decision might be connected to the recent discovery of money laundering incidents in Türkiye that involved the use of Twitch as a platform.
These sweeping changes are likely to alter the landscape of content creation on Twitch and could potentially signal the advent of new strategies for streamers looking to maximize their earnings. The pursuit of profitability by Twitch might be a challenging road that could reshape how the platform operates and how streamers engage with their audience and monetize their craft.