Twitch is the leading live-streaming service for gamers and e-sports enthusiasts.

It allows the streamers to play video games while interacting with their viewers and other players in real-time.

It continuously grew in popularity in the gaming industry.

There were approximately 9 million Twitch streamers per month in 2021 and around 2.8 million concurrent viewers.

Based on a report, Twitch acquired 41% year-over-year growth in its 2021 revenue.

How Much Money Does Twitch Make in 2023?

Twitch generated an estimated revenue of around $2.68 billion in 2021, mostly acquired from advertising.

This represents an increase of around 785 million from the previous year.

In Q1 2021, the platform recorded around 22,000,000 new downloads and had around $103.65 million from in-app purchase revenues across App Store and Play Store.

In January 2022, Twitch exceeded $1 billion in consumer spending across app stores.

Based on the report of The Information, the ad revenue of Twitch in 2018 was approximately $230 million and reached $300 million in 2019. 

Let’s take a look at the annual revenue of Twitch from 2016 to 2021:

• Twitch generated an estimated revenue of 2.68 billion in 2021
• Twitch generated an estimated revenue of 1.89 billion in 2020
• Twitch generated an estimated revenue of 1.23 billion in 2019
• Twitch generated an estimated revenue of 880 million in 2018
• Twitch generated an estimated revenue of 300 million in 2017
• Twitch generated an estimated revenue of 275 million in 2016

In-App Purchase (IAP) Twitch Revenue

The app version of Twitch is available on different iOS and Android devices.

It generated an in-app purchase revenue of around $39 million in Q3 2022, down by $51 million from the same quarter last year.

Below is a list of in-app purchase revenue of Twitch from Q1 2021 to Q3 2022:

• In Q1 2021, Twitch recorded an in-app purchase revenue of $101.96 million
• In Q2 2021, Twitch recorded an in-app purchase revenue of $99.08 million
• In Q3 2021, Twitch recorded an in-app purchase revenue of $90.51 million
• In Q4 2021, Twitch recorded an in-app purchase revenue of $70.35 million
• In Q1 2022, Twitch recorded an in-app purchase revenue of $57.19 million
• In Q2 2022, Twitch recorded an in-app purchase revenue of $41.61 million
• In Q3 2022, Twitch recorded an in-app purchase revenue of $39.14 million

Number of Hours Watched on Twitch

Twitch is a popular platform for those who want social media and games.

Some people are more entertained by watching other gamers play than by playing themselves.

In 2021, almost 23 billion hours of live streams on Twitch were watched by viewers.

This represents a 22% growth from the previous year, equivalent to around 4.2 billion increase.

Here are the numbers of hours watched by viewers on Twitch from 2017 to 2021:

• There were around 6.5 billion hours of live streams watched by viewers on Twitch in 2017
• There were around 9.3 billion hours of live streams watched by viewers on Twitch in 2018
• There were around 11 billion hours of live streams watched by viewers on Twitch in 2019
• There were around 18.6 billion hours of live streams watched by viewers on Twitch in 2020
• There were around 22.8 billion hours of live streams watched by viewers on Twitch in 2021

How Streamers Make Money on Twitch

Streamers on Twitch make money in different ways. Twitch pays its streamers on the 15th of the month – as long as there is at least $100 in the account.

Starting July 15, the minimum payout threshold became $50 from $100.

Here are some of the ways how streamers make money on Twitch:

• Ad revenue
• Viewer subscription
• Twitch bits
• Affiliate marketing
• Sponsorship deals
• Donations
• Patreon subscribers
• Merchandise

Conclusion

Many people are using Twitch for entertainment since the platform, app, and entry-level access are free.

Some viewers subscribe to the channel of their favorite gamer or streamer and pay around $4.99 monthly or $9.99 monthly.

Aside from subscribing to premium channels, viewers show their support by giving Twitch bits. In this way, both the streamers and the platform are making money.

Twitch is planning to reduce the revenue share for subscriptions of top creators from 70-30 to 50-50 after they hit the threshold of $100,000 on 70-30 sharing.

Many streamers reacted that this is no longer the creator-first platform.

Will this affect the revenue of Twitch?

Let’s see after its implementation in June 2023.

Sources