Amazon-owned streaming platform Twitch is making a big change to how it structures the pricing of its subscriptions.
In markets outside of the US, a ‘Tier 1’ subscription to a channel or creator costs the equivalent to US$4.99 per month. The company has however said that it is changing this with its international audience in mind.
In a blog post, Twitch said that “it’s not equally affordable around the world to show support” for creators around the world due to currency exchanges. It added: “This price makes it difficult for many viewers to support their favorite creators, and likewise, prevents creators from being able to grow their communities, make more content, and welcome new fans.”
The company cited its user metrics as evidence of this, saying that the percentage of active users in Europe or Asia who support creators with a subscription is roughly 50% lower relative to North America. In Latin America, it’s nearly 80% lower.
As such, Twitch will be adjusting the price of subscriptions in most countries, starting with Mexico and Turkey on May 20. These will be followed by “most countries’ in Asia, Latin America, the Middle East, Africa, and Europe starting in Q3 2021.
The result of this will be lower subscription costs for users, but potentially lower revenue as a result for streamers. Twitch has insisted that the change “will make it easier for creators everywhere to grow their communities” and said that “we’re confident lower sub prices will boost creator growth and revenue in the long-term.”
To compensate for the change, Twitch said that it will cover 100% of baseline subscriber revenue if needed for three calendar months, and reduce this by 25% every three months over the following nine months. Creators must stream at least 85% of their live ‘baseline’ hours in order to be eligible for his compensation.