Twitch CFO explains why big streamers like MontanaBlack will soon be making around $500,000 less a year

Speaking at TwitchCon in San Diego, Twitch Chief Financial Officer Mike Minton explained why the platform’s biggest streamers are being cut their share of revenue in the summer of 2023: from 70% it’s up to $100,000 a year in revenue 50% down. As a tip to compensate for the loss, he advises simply doing more advertising for Amazon Prime. One can assume that streamers like MontanaBlack will not be convinced.

This news caused a stir:

• We have on MeinMMO on 22.09. reported that Twitch will soon pay some streamers worse than they have all the time:
• Typically, streamers with Twitch share revenue 50/50
• But some bigger streamers get special treatment: they get a 70:30 ratio in their favor. Some streamers had requested that all streamers should get this 70:30 ratio. That would only be fair.

But on September 21, Twitch announced that soon even the larger streamers would only get this 70/30 split up to an annual turnover of $100,000. After that, they too drop down to 50/50.

MontanaBlack Says New Split Will Cost Big Streamers $300k To $800k

What was the reaction? This statement caused outrage among many Twitch streamers. One of the biggest German Twitch streamers, MontanaBlack, calculated that big streamers like him would be missing between $300,000 and $800,000. In his typical way, he explained in a live stream on Twitch that he was right to be upset about this and that everyone else would be too:

Some people would now say: Yes … I think that’s totally fine, because you earn enough anyway. I would like such comments that you save yourselves. And I will now discuss why. That’s a double standard that these people drive. Because none of those who write that in the comments on TikTok or anywhere else would say in the situation – now in my case, for example, or also in the case of Elias or a large American streamer: Let’s quickly talk about three, Four, five, six hundred, eight hundred thousand dollars a year that you make less.

And none of you little shitheads who write to me: Oh, I think that’s totally fair! – None of you double-standard ass-lickers would say to Twitch in the situation: 50/50, from the value of 100,000 – let’s do it!

Montanablack

MontanaBlack openly toyed with the idea of ​​getting off Twitch. The lowering of the price for subs in the German Twitch was a negative development. Now the platform is getting worse and worse.

Slightly smaller but still big streamers like Staiy also said they were $50,000 short under the new bill. He, too, is considering leaving Twitch under the new, worse conditions. He says in a video he will be terminating his Twitch contract at the end of 2023 (via youtube).

Other German Twitch streamers explained that the $100,000 does not end up with the streamer either, but that there are many other taxes, such as taxes, insurance or electricity.

MontanaBlack talks about the new split and the cost – starting at 1:17 minutes

Twitch purser somehow blames Amazon: They want Twitch to make money

Here’s how Twitch justified the decision: At TwitchCon in San Diego, home of a completely harmless ball pool, Twitch CFO Mike Minton underlined the decision again. He says:

We looked at all the options: can we offer a 70/30 split for everyone? The answer is no, it’s not possible for Twitch in the long run. At least according to what we know today.

The typical answer we always get: Hey wait, you’re part of Amazon. What are you talking about anyway? – But, what you have to understand: Amazon expects Twitch to prosper financially as an independent company. But the good news is: Amazon has this awesome perk called Prime, and as part of the Prime offering, they have Prime Subs.

This is his tip: The head of finance advises Twitch streamers to talk more about Amazon Prime, because there are still some Prime subscriptions that are not distributed.

If you raise awareness of them, you can increase revenue.

This is behind it: That’s quite a gig that streamers will choke on.

Twitch ultimately blames Amazon for having to skimp soon. One advises to counteract this, then simply: do more advertising for Amazon and their Prime offer.

It seems as if Twitch is underlining its dominant position here and is rampant with the pound “Amazon Prime Subs”, but that’s nothing new, it’s been around forever.

There remains a feeling that the biggest streamers will soon be left worse off because Amazon is no longer willing to simply invest in Twitch’s growth and wants to see profits.

You have to realize that only a small part of the streamers is affected by the new regulation. A great many people on Twitch have never been within reach of $100,000 in sales or a 70/30 split:

How much money do “normal” Twitch streamers make? Who can make a “good” living off Twitch?