Streaming platform Twitch has announced changes to its revenue system that will go live starting next year, and this new update will affect some of its biggest streamers. Twitch’s current revenue model works with a 50/50 split between partner streamers and the platform when it comes to paid subscriptions, with larger streamers getting a more generous 70/30 split.

This will change in June 2023, as streamers will keep 70% of subscription revenue from the first $100,000 earned, with the share reverting to a 50/50 split. The new threshold will impact the top 10% of Twitch streamers, and one of the reasons for the policy change is due to the higher cost of video hosting, according to a blog post by Twitch President Dan Clancy. .

“Delivering always-on, low-latency, high-definition live video to almost every corner of the world is expensive,” Clancy wrote. “Using Amazon Web Services’ Interactive Video Service (IVS) published rates, which is essentially Twitch video, live video costs for a 100 CCU streamer streaming 200 hours per month is over $1000 per month We don’t usually talk about this because, frankly, you shouldn’t have to think about it. We’d rather you focus on doing what you do best.”

It’s worth noting that Amazon owns Twitch, having acquired it in 2014 for around $970 million in cash. The rest of the Twitch streaming community will be largely unaffected by this update as they have standard deals with premium subscription terms.

Twitch has had a turbulent year so far, losing big-name streamers like Myth and LilyPichu, while also facing an ultimatum from big-name streamers like Pokimane, Mizkif and Devin Nash to crack down on online gambling content. In an update to its partner program last month, Twitch changed its exclusivity agreement and now allows content creators to stream on other platforms.