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Source: Euro News

Twitch reportedly considering to cut streamer pay to boost their profits
The share of subscriptions of its top streamers would go down from 70% to 50%

A person standing in front of an illuminated banner of Twitch
Twitch is set to cut streamer pay to boost its own profits.
Source: Business News

Content creators and sellers are visibly having a rather tough time this year as they attempt to earn revenues through major tech sites. Reportedly, new pay cuts are making way to Twitch as sellers on Amazon and Etsy already  fight through increased charges. People familiar with the situation reported about this new development to concerned reporters.

According to the report, the gaming giant wants to incentivise streamers to run more ads along with the consideration of lessening the part of subscription fees given to performers. Resultantly, the top streamers of the platform would clearly witness their share of subscriptions go down to 50% from 70%. Moreover, the company is additionally considering the introduction of multiple pay tiers with distinct criteria needed to qualify for each of them. Crucially, these updates are mainly directed towards boosting Twitch’s profitability, even if it comes at the price of the most of active users of the community. Unfortunately, the gaming giant did not acknowledge any requests made for a comment on the situation.

Contrastingly, sources also confirmed that Twitch could consider easing up its restrictions surrounding exclusivity. This would mostly allow creators to stream on other sites as well, allowing them to earn some extra income from there in addition to this.

Other developments:

These considerations for the new possible updates at Twitch is at a time it is riding high on viewership surge caused by the pandemic. Specifically, 24% of the American internet users aged 16 to 64 stated that they began streaming such content at the time of the pandemic. On the contrary, the gaming giant is also going through a significant ‘exodus’ of employees who are disappointed with its direction. Clearly, streamers of the site are not the only ones up for a financial squeeze from the bosses of the tech giant.

Besides, Amazon stated that they would add a 5% ‘fuel and inflation surcharge’ to third party sellers who make use of the retail giant’s fulfilment centres. They use it mainly as a means to offset increased fees. Reportedly, the company said that the increased hourly wages, costs of construction, along with new hires at the time of the pandemic were all because of increased price hikes.

Recently, Etsy attempted to increase seller transaction fees by about 30% that would resultantly raise the seller fee to 6.5% from 5%. Consequently, the sellers went on strikes, issuing a digital boycott over what they considered an overwhelming increase in seller fees.