Constance Knight, SVP of Global Creators at Twitchleft the company in the midst of the controversy caused by the change in the division of payments between this service and the content generators.
At the same time, reports are emerging that the company’s president, Dan Clancy, is not on the same ‘frequency’ as the creatives. Especially in terms of how to distribute the profits obtained from the transmissions.
According to Clancy the 70/30 revenue split on Twitch is too expensive to justify. According to what a well-known media reveals, Knight submitted his resignation the same day the president announced the changes.
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He also left a letter for his employees revealing that he will be ’embarking on a new adventure that will provide exciting opportunities for growth both professionally and personally’.
What is Constance Knight going to do now? From what it seems this new opportunity for her is of a creative type. It was something that could be expected from someone who in the past was head of content for both YouTube and Instagram.
This change in the form of payments on Twitch is also creating more internal division between the company and its employees. At least that is what the most recent reports suggest.
What is the controversy of payments on Twitch?
In a recent post on his Twitch blog, he revealed that he will change the contract conditions with some streamers regarding their payments. Especially with those of Premium category and that had a distribution of 70/30.
In other words, 70% of the profits remained in the hands of the content creators and 30% in the company. Well, that will change as of June 1, 2023. The 70/30 ratio will remain in force.
However, only up to the first $100,000 earned from subscriptions per year. Upon exceeding this threshold, the distribution will be 50/50.
To the aforementioned, it should be noted that the payment threshold for normal members will be half, at only $50 dollars the new cut. Twitch justifies these changes in the way of operating the 70/30 due to the high operating cost. Many streamers are unhappy.
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