Twitch is making changes to its ads incentive program again. The difference now is that it’s expanding its policy to include more partners and eventually pay more money to streamers via their ads. The change comes relatively fast after the last one.
Earlier this year, the popular streaming platform introduced a new ads incentive program that offered streamers a guaranteed flat payment in exchange for running a fixed number of ads on their channels. However, according to representatives of the company, it wasn’t ‘the best way to move forward’, and is now being changed to a new model that allows for more partners and more money for streamers.
The new model will roll out in August. Changes have already arrived with the latest program update on June 15, but not for affiliates. Streamers who run at least three minutes of ads per hour will now get 55% of ad revenue. With the new 55/45 split, Twitch hopes to ensure price increases to creators. At the same time, the new model will also disable the annoying pre-roll ads for users. That’s something everyone will love.
A few months ago, reports surfaced online that Twitch is looking to cut streamer revenue in order to increase earnings. Of course, the response from streamers was hellish, even though the company never admitted to even looking at that kind of model. The new expansion may be one way of softening the blow for any changes in the future.
Twitch is notoriously tight-lipped about streamer earnings. Reports have found out that some streamers that promote gambling ads are earning millions in income every year. Not everyone is open to that idea, though. Famous streamer Pokimane claims that no money will get her to do gambling streams. Others are enjoying the cash. In the midst of a crypto gambling boom, many users have cashed in on gambling ads, but were highly criticized by the community.
The biggest problem for streamers on the platform these days was income reliability. No one could really calculate what earnings they can expect per month. Twitch was the boss in that case, but with reports of a 50% revenue increase (mostly due to ads) in 2021 over 2020, some streamers began wondering where the money goes.
Instead of the flat guaranteed rate based on the CPM model, Twitch is now opening the platform for streamers. Basically, the more partners they get for their streams, the more money they’ll earn. With crypto gambling sites ‘hunting’ for new streamers, some will surely take the deal and earn millions.
Of course, there’s the question of morality here, but many won’t mind when they see the green. With the new model rolling out to affiliates in August, dozens of creators will take up gambling deals and enjoy the money.
It remains to be seen if the model will be a success. So far, comments have been positive, but let’s wait and see what happens by the end of the year.