Ludwig Take On Upcoming Changes

Twitch is currently under fire from its users after Bloomberg reported that changes to how streamers make money on the network are on the way.

Streamers who are part of the partner program can currently keep 70% of the revenue generated by subscriptions to their channel. The 70/30 split is a well-worn pattern for distributing revenue across computing platforms, with Valve’s Steam shop and Apple’s App Store following suit. Ludwig, a streamer who switched to YouTube in November, has now spoken out about the changes and how they may affect streamers’ incomes in a new video.

The 10-minute video is fairly succinct in conveying the message, with a focus on smaller streamers who don’t make as much money as those at the top. Ludwig currently only streams on YouTube, ditching his 3 million Twitch followers for a contract job. He does, however, keep an eye on the Amazon platform and hasn’t held back in this case. 

Ludwig used a Super Smash Bros. game. As an example, an ultimate commentator who presently earns $84,000 might see his Twitch compensation reduced by $24,000 as a result of the adjustments, leaving him with only $60K before taxes. Ludwig’s example is a tad on the high end, as CONEY, the analyst, has roughly 2,000 subscribers on his YouTube channel. 

Lower-subscribed users who are just getting their feet wet will have to rely on Twitch’s upcoming ad modifications, which will result in an overall increase in their presence on the platform. These changes are in line with the current trend of streaming or subscription-based services like PlayStation Now, Netflix, and Xbox ramping up their advertising to help drive up revenue, particularly in the case of free-to-play games where a manufacturer like Sony may not see a penny from a user at all. Ludwig points out that, while advertising is a relatively new notion to Twitch, people are frequently dissatisfied with it. Because of the live component, an advertisement may miss a vital point in a stream.

Consider a UFC battle that cuts to an ad break just as someone taps out.

In the video, Ludwig explains how advertising revenue is divided between Twitch and the streamer. Twitch presently pays between a $1 and $3.50 per 1,000 impressions, with Ludwig claiming that “most” of the larger streamers are getting the entire amount, while those on the lower end may only get a dollar (i.e. eyeballs on the advert). 

Smaller streamers would have to rely on advertising throughout their streams to recuperate any lost subscription money, which could turn off viewers owing to their unskippable nature and length. 

Ludwig switches from one stream to another in the middle of an advertisement at 4:45. As soon as the new stream loads, he is greeted by the same ad in its entirety, wonderfully highlighting the impending difficulties.