Understanding Twitch’s revenue split can feel a bit complex at first, but let me break it down in a way that makes sense for both streamers and viewers.
The Standard 50/50 Split
For most Twitch streamers, the platform takes 50% of each subscription. So when a viewer pays $4.99 for a Tier 1 sub, the streamer typically receives $2.50. This might seem like a big cut, but remember that Twitch provides the infrastructure, servers, and platform that makes streaming possible.
Premium Partnership Deals
Some larger creators actually get a better deal. If you’ve been around Twitch for a while, you might have heard about the coveted 70/30 split, where streamers keep 70% of subscription revenue. This used to be more common, but Twitch has been scaling back these premium arrangements. As of late 2022, even most top streamers are capped at $100,000 in annual subscription revenue at the 70/30 split, after which they revert to the standard 50/50.
Breaking Down the Tiers
Let’s look at what streamers actually receive from each subscription tier:
– Tier 1 ($4.99): Streamer gets $2.50
– Tier 2 ($9.99): Streamer gets $5.00
– Tier 3 ($24.99): Streamer gets $12.50
Prime Gaming Subscriptions
Here’s something interesting – Prime Gaming subscriptions (included with Amazon Prime) follow the same revenue split as regular subscriptions. So when someone uses their Prime sub on a channel, the streamer still receives the same amount as a regular Tier 1 subscription.
Regional Pricing Impact
Something many people don’t realize is that Twitch offers lower subscription prices in certain countries to make them more affordable. While this is great for viewers, it means streamers in these regions often earn less per sub. The revenue split still applies, but to a lower base amount.
The Business Behind the Split
You might wonder why Twitch takes such a significant portion. Well, consider the massive infrastructure required to host millions of simultaneous live streams, store VODs, and maintain a global content delivery network. The platform’s cut helps cover these operational costs while maintaining profitability.
For comparison, this split is actually pretty standard in the industry – YouTube takes a similar cut from channel memberships, and many other platforms operate on comparable models.
Remember, subscriptions are just one piece of the revenue puzzle for streamers. Many successful creators diversify their income through bits, donations, sponsorships, and merchandise – areas where Twitch either takes a smaller cut or none at all.
