Twitch is considering cutting streamer payments to boost profits

Image of article titled Twitch is reportedly considering cutting streamer salaries to boost its own profits

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2022 will be a tough year for content creators and sellers trying to make a living from big tech platforms. Sellers on Amazon and etsy It’s already facing increased fees, and now fresh pay cuts could be making their way to Twitch.

New Bloomberg report Citing people familiar with Twitch’s payment schedule, the company wants to encourage streamers to show more ads and is considering reducing the portion of the subscription fee dedicated to performers. More specifically, the share of subscriptions from the site’s leading live streaming operators will drop from 70%. according to Bloomberg to 50%. The company is also considering offering multiple pay grades with different criteria needed to qualify for each. Ultimately, these changes are intended to increase Twitch’s profitability, although this may come at the expense of more active users in their community.

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

On the other hand, sources speaking to Bloomberg said the company may be considering easing exclusivity restrictions that will allow developers to stream on other platforms. And maybe earn an extra income there too.

Temporary monetization considerations come amid a time of ups and downs on Twitch. On the other hand, the rise of the company has led to a surge in epidemic viewership. About 24% of US internet users ages 16 to 64 said they started watching more live broadcasts during the pandemic, according to GlobalWebIndex data. seen before Informed Intelligence. On the other hand Still, despite those soaring eyeballs, Twitch is reeling at the same time as Bloomberg Calls “Mass flight” of disappointed employees towards the company. About 300 employees reportedly left Twitch in the past year, with another 60 in the first three months of 2022. SomThe top creators have also left. Both last year Dr. Lubo and TimTheTatmantwo of the most reputable streamers left the site to compete with YouTube.

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

Earlier this year, Amazon announced it would impose a 5% “fuel and inflation surcharge” on third-party retailers using the company’s fulfillment centers to offset the increased costs. at the note For sellers seen by the Associated Press, Amazon said increased hourly wages, construction costs and new hires during the pandemic were all responsible for the price hike. However, Amazon hasn’t quite struggled during the pandemic as a company Despite it. In the first quarter of 2021, the company Spread Record sales of $108.5 billion, almost tripling sales compared to the same point last year.

Went to Etsy sellers beat They imposed a digital boycott of what they saw as an exorbitant increase in seller fees. Tried Etsy recently morese Seller transaction fee of 30%, which actually increases the seller fee from 5% to 6.5%

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