What a Twitch channel can make from a subscription...

Eric

Expert
Since this topic was discussed in chat today let's have a closer look. And this is just an example.

Some pretty standard example with a rather low income scenario

Recently VAT was added to subscriptions, depending on local law, it does for example apply for EU countries where most of our subscribers happen to be located.

A typical subscription for 1 month with PayPal from Germany is currently 6.01$.

Of this total 96 Cent are VAT. Another 6 Cent are fees for the payment system.

2.50 go to Twitch.

Leaves 2.50 for the channel, before taxes...

Lets assume you are in Germany and your gross earnings 20.000 Euro per year, most of it from a regular job as an employee and a small part of it from Twitch. Considering German legislation for taxes, social insurance, etc. this would mean ~ 1176 Euro (1318 USD) net income per month which is just enough for a really humble lifestyle in Germany, right?

In that model of the 2.50 from the subscription you would have to pay ~17 Cent taxes on income.

Of the original 6.01 a subscriber had to pay you would get ~2.33 USD (2.08 Euro).

(Just for comparison: considering the average gross income of an full-time employee in Germany the tax on income would be ~0.53 USD (0.48 Euro), resulting in 1.97 for the broadcaster from a 6.01 channel subscription)

And in a table with the assumptions and model of above:
Subscriber pays6.01
To tax authorities via VAT0.96
To payment system0.06
To Twitch2.50
To tax authorities via tax on income0.15
To channel/broadcaster2.35


Some further considerations:
  • depending on country of the subscriber the VAT might be higher or lower, for example VAT is 17% in Luxemburg, 19% in Germany, 20% in the UK, 25% in Denmark and 27% in Hungary
  • depending on country of the broadcaster the tax on income might be higher or lower
  • depending on total income of the broadcaster the tax on income might be higher or lower, although much lower is hardly possible
  • the split between Twitch and "top" broadcasters might be different
 

Cryorvus

Specialist
I'm not stingy and not poor, but I never subscripted to Ludophiles. I do so, because I never (if I know about the backgrounds) support companys with conditions, I dislike. The company I'm talking about is Twitch, not Ludophiles ;). So please tell me: are there other ways to support Ludophiles? I know about GOG, but my PC gaming is placed back at the moment.
 

Eric

Expert
Oh, this was not a call for support. Seriously, with the numbers presented, and the fact that the grand majority wants to support a channel first, and then maybe Twitch too, if at all, no humble streamer can actually ask for people subscribing.

The way it's handled it's really unfortunate. And it's unfortunate that VAT came on top a couple of weeks ago. Even more unfortunate because we wanted to start a "race for emotes" this month, meaning we would have tried to get more emotes by getting more subscribers, not because of the money but because of the emotes. Financially it would have cost us because of the welcome game given to new subscribers.

How else or better to support the Ludophiles project or Dahlia directly, I'll probably write a little post about it the coming days. For example we have affiliate partnerships with ebay & amazon, several game key stores such a G2A or Kinguin, platforms like GOG or the that Austrian game dealer whose not to be named for delivering new games very early ;)
 

RAZER

Veteran
Or just put some money in an envelope and sent it to:

Ludophiles
The Internet
Everywhere

Should eventually end up somewhere :)
 

Cryorvus

Specialist
The Austrian game dealer? You talk about the people "lost" their customers passwords..I think 2-3 years ago. I sometimes use this shop to get uncut titels.

I don't thought the post was a call for support. But I want to support and I always prefer the direct way (so, I wait for your post). Referring the emotes: I think Twitch is stingy with custom emotes and the burden to get something so lapidary is high. I'm curious whats terms youtube-streaming will have, if they can clarify the german legal problems.
 
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