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This question is about Twitch.

How does Twitch make money?

By Zippia Team - Feb. 1, 2023

Twitch makes money via premium subscriptions, its digital currency (Bits), video advertising, and from sales of its merchandise. Here is a closer look at each of the ways Twitch makes money:

  • Premium subscriptions

    Twitch users have the ability to subscribe to certain Twitch channels in a show of support for the creator. The company's subscription model has three different tiers:

    • $4.99 per month

    • $9.99 per month

    • $24.99 per month

These paid subscriptions come with a number of benefits for users, such as:

  • Advertisement-free content on Twitch

  • Access to emojis that are only provided to subscribers of certain channels

  • Special icons called subscriber badges

  • Access to exclusive chat rooms that are only available to paid subscribers

The most expensive subscription is the premium subscription which comes with some extra bonuses and perks for users. Twitch takes a 50% cut of the money earned from premium subscriptions, the other half is paid to the content creator of the Twitch channel.

  • Digital Currency (Bits)

    Twitch's digital currency Bits, also called Cheer Bits, is another way the company generates revenue. The company has different packages for purchase in this area, they range from 100 Bits ($1.40) to 25,000 Bits ($308). Similar to the subscription model, Twitch content creators take home a portion of these profits, between 60% to 80%.

  • Video advertising

    Twitch earns a lot of profit from providing advertising space on its platform. These video ads are mostly targeted at free users.

  • Twitch merchandise

    The company also generates money from the sale of Twitch-branded products. Twitch partners with Amazon, so it gets a big bump in profits from the exposure it gets from the online sales giant. Twitch also sells products directly off its platform. The merchandise mostly consists of apparel and some other branded items.

  • How does Twitch make money?

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