Twitch Payout Leak: Streamers React to Revealed Data

Data Breach Exposes Twitch Creator Payouts and Raises Transparency Concerns

Yesterday, Twitch confirmed a substantial data breach resulting in the publication of internal information, including creator compensation details. The streaming service explained in an official blog post that the incident stemmed from a misconfiguration of a Twitch server, which was subsequently exploited by an unauthorized third party. This leak has intensified pre-existing discussions among streamers regarding pay openness and overall platform safety.

Recent Challenges for the Streaming Giant

This data compromise occurs amidst a challenging period for the Amazon-owned platform, which currently commands 72.3% of the live video game streaming market share, surpassing competitors such as Facebook Gaming and YouTube Gaming as of earlier this year. Recently, the platform faced a boycott on September 1st, organized under the hashtag #ADayOffTwitch, in response to targeted harassment of marginalized creators by malicious bot attacks. This action led to a decrease in peak concurrent viewership by 1 million viewers.

Despite the implementation of new safety measures by Twitch, tensions within the community persist.

Streamer Reactions and Concerns

“It felt inevitable that an event like this would occur,” stated Lucia Everblack, a transgender streamer and key organizer of the #ADayOffTwitch boycott. “It has become increasingly clear that security and safety haven’t been prioritized by Twitch.”

The leaked data encompassed source code, proprietary software development kits (SDKs), and an unreleased game from Amazon Game Studios. However, Everblack, who also works as a software engineer, believes the disclosure of creator payout information underscores a perceived bias towards streamers generating the highest revenue.

Income Disparity on Twitch

An analysis of the leaked data, spanning from 2019 to the present, reveals that the top 10% of 10,000 streamers account for 49% of all earnings on Twitch. Approximately 2,000 streamers earned over $100,000 during this timeframe.

“Feature development appears to be driven solely by this group, hindering the growth of the rest of the platform,” Everblack explained to TechCrunch. “This creates a significant barrier for individuals, particularly those who are BIPOC, LGBTQI+, or disabled.”

Discovery and Prioritization of Top Earners

Scott Hellyer, a Twitch Partner streaming as tehMorag for over nine years, shares the sentiment that Twitch favors its highest-earning users. He noted that discovery on Twitch has always been a problem.

“YouTube’s algorithm effectively connects viewers with content they enjoy, while Twitch’s efforts, though ongoing, haven’t been sufficient,” Hellyer told TechCrunch. “Some now suggest Twitch intentionally prioritizes top streams, as they already generate the desired revenue. This is a logical return on investment.”

Diversity and Discoverability

The leaked data indicates a lack of diversity among top earners, with white men predominating. Pokimane, the highest-paid female streamer, ranks only 39th on the list. Enhanced discoverability features could potentially amplify more diverse creators.

Everblack and other marginalized streamers advocated for identity-based tags on streams, implemented by Twitch in May, to facilitate connections between diverse creators and supportive viewers. Everblack also founded Peer2Peer.live, a discoverability tool for marginalized streamers. While some express concerns that these tags could aid malicious actors, Everblack reports significant growth resulting from their use. Twitch has responded by adding phone-verified chat features to mitigate potential attacks.

Varied Pay Structures and Contractual Discrepancies

Despite the potential for substantial income, achieving significant earnings on Twitch remains challenging. Streamers who gain popularity can apply to the Twitch Partner program, which provides additional tools and monetization options. However, multiple streamers have indicated that pay structures aren’t uniform among Partners. A 2017 report by Insider revealed a subscription revenue split ranging from 20/80 to 60/40, depending on a streamer’s popularity.

While a 50/50 split is standard, some streamers allege that prominent creators have negotiated more favorable terms, such as 60/40 or 70/30, mirroring YouTube Gaming’s default payout. Several popular streamers, including CouRage, DrLupo, and Valkyrae, have transitioned to exclusive deals with YouTube.

Calls for Pay Transparency

Jess Bolden, streaming as JessGOAT, told Input, “The disparity in split percentages between LGBTQIA+ and women streamers, who often receive 50/50, and men, who may have 75-25 splits with ad agreements, is a significant issue.”

Twitch declined to comment on claims of differing contractual terms for Partners.

Hellyer revealed on Twitter that his Partner contract prevents him from openly discussing his earnings.

“The leaked data doesn’t detail the specific splits or contract types, but it will allow analysts to calculate the CPM (cost-per-mille) for various streamers, assess their Bits and subscription revenue shares, and determine the overall financial impact,” Hellyer explained to TechCrunch. “We can’t disclose our actual earnings, but we can share metrics like subscriber counts, though transparency remains lacking.”

Industry-Wide Trends and Societal Reflections

The tech industry is witnessing a growing movement towards greater pay transparency, holding companies accountable for equitable compensation.

“Twitch mirrors societal norms,” RekItRaven, who led the #ADayOffTwitch boycott and initiated the #TwitchDoBetter hashtag, told TechCrunch. “There’s historically been a taboo around discussing pay, but there’s no legitimate reason for that.”

However, Twitch payouts are more complex than typical tech company salaries, as the platform sets contract terms, but channel performance varies significantly.

Revenue Considerations and Diversification

Critical Role reportedly earned $9,626,712 since August 2019, topping the list of highest-paid streamers, followed by xQcOW with $8,454,427. However, the operational costs for a show like Critical Role, involving 31 team members, differ substantially from those of an eSports streamer like xQcOW. Furthermore, revenue streams extend beyond Twitch for many creators, including sponsorships, Patreon, donations, and other ventures.

“Twitch accounts for only 40% of my total income,” Hellyer stated. “Diversification is crucial to mitigate the impact of events like this.”

The Path Forward

Everblack expressed concern that smaller creators will face greater scrutiny over their leaked payout numbers. She believes Twitch could better support marginalized creators by implementing community-driven features to enhance safety and growth. Suggestions include rewarding viewers for positive contributions and enabling larger streamers to conduct smaller raids to multiple channels.

“Marginalized voices are vital to the Twitch community, and actively listening to them could prevent future issues and foster features that genuinely benefit all users,” Everblack concluded. “Twitch’s focus on a small group of large creators overlooks a vast network of potential users, particularly those who feel excluded due to a perceived bias towards white male gamers.”