Twitch has raised its minimum payment threshold for streamers from $100 to $500 in an effort to combat fraudulent activities and lower transaction fees. However, the decision has sparked controversy among the streaming community, with some smaller and newer streamers expressing concern that they will have to wait several months or longer to cash out their earnings. Many streamers have used the #TwitchDoBetter hashtag to call for the policy to be reversed, with some even threatening to move to rival platforms with lower minimum payment thresholds. Twitch has acknowledged these concerns but has not committed to reversing the decision.
Twitch Raises Minimum Payment Threshold for Streamers, Sparks Controversy
On 30 August 2021, Twitch announced that it was raising its minimum payment threshold for streamers from $100 to $500. This meant that streamers would have to earn a minimum of $500 before they could cash out their earnings. The decision was met with mixed reactions from the streaming community, with some welcoming the change while others were outraged.
The Reason for the Change
Twitch stated that the reason for the change was to combat fraud and abuse. The platform has been grappling with a number of issues related to fraudulent activities, such as fake viewers, bots, and viewbots. These activities can artificially inflate a streamer’s numbers, making it difficult for the platform to accurately pay out earnings.
By raising the minimum payment threshold, Twitch hopes to deter fraudsters from attempting to make fake payments. According to Twitch, the new policy was also designed to lower the transaction fees associated with processing small payments. With a higher minimum payment threshold, fewer payouts would be made, resulting in lower fees for the platform.
The Controversy
Many streamers were unhappy with the change, arguing that it would make it harder for smaller and newer streamers to earn money from their channels. Smaller streamers who regularly make less than $500 per month will now have to wait for several months or longer before they can cash out their earnings.
Some streamers also argued that the change would disproportionately affect creators from countries with weaker economies. In these countries, earning $100 per month from Twitch can make a significant difference in a creator’s financial well-being. For these creators, waiting months to cash out their earnings could put them in financial difficulties.
The controversy around the policy change led to the creation of the #TwitchDoBetter hashtag, with many streamers calling on the platform to reverse the decision. Some streamers even threatened to move to rival platforms that offer lower minimum payment thresholds.
The Response
In response to the backlash, Twitch issued a statement in which it acknowledged the concerns raised by streamers. The platform stated that it would be looking into ways to mitigate the concerns raised by creators, although it did not commit to reversing the policy.
Twitch also clarified that the new minimum payment threshold would not be retroactive. Creators would only have to earn $500 from the day the policy took effect to cash out their earnings. However, this did little to assuage the concerns of many streamers who saw the change as yet another instance of Twitch neglecting its smaller creators.
FAQs
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What was the previous minimum payment threshold?
The previous minimum payment threshold for Twitch streamers was $100.
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Why did Twitch raise the minimum payment threshold?
Twitch raised the minimum payment threshold to combat fraud and abuse on the platform. The platform also wanted to lower transaction fees associated with processing smaller payments.
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Why are some streamers unhappy with the change?
Some streamers are unhappy with the change because it makes it harder for smaller and newer streamers to cash out earnings from their channels. The change could also disproportionately affect creators from countries with weaker economies.
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What is the #TwitchDoBetter hashtag?
#TwitchDoBetter is a hashtag created by streamers who are calling on Twitch to reverse the decision to raise the minimum payment threshold.
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What is Twitch’s response to the controversy?
Twitch has acknowledged the concerns raised by streamers and stated that it will be looking into ways to mitigate these concerns. However, the platform has not committed to reversing the policy change.
