Twitch Announces Subscription Price Increase in Selected Countries: Impact on Streamers and Subscribers

Twitch, the popular live streaming platform owned by Amazon, has recently announced an update to its subscription prices in several countries. The changes, which will affect Tier 1, 2, and 3 subscriptions, are aimed at helping streamer revenue keep pace with rising costs and reflect local currency fluctuations. The first markets to experience these price adjustments are the United Kingdom, Canada, Australia, and Turkey.

The base/gift subscription price in the UK, Canada, and Australia will increase from £5, $7 CAD, and $8 AUD, respectively, to £6, $8 CAD, and $9 AUD. Tier 2 and 3 subscription prices will remain unchanged in these countries. In Turkey, however, Twitch is implementing more substantial price increases across all three tiers. For instance, a Tier 1 subscription will soon cost 43.90 lira ($1.42) instead of the current 9.90 lira (32 cents).

These price changes apply only to subscriptions purchased on the web. Twitch plans to update prices on its mobile apps in the coming months. It is currently more expensive to buy a subscription on the Twitch iOS app. The service also anticipates updating pricing in other countries later this year.

The announcement comes after Amazon reportedly laid off around 500 Twitch employees and reduced the amount streamers earn from Prime subscriptions. The price increase is an attempt to bolster Twitch’s bottom line and offset these cost-cutting measures.

Streamers will benefit from the same revenue share under the new pricing structure. This means they will earn more from subscriptions in the UK, Canada, Australia, and Turkey. Twitch has also recently announced changes to streamer payouts from Prime subscriptions. Starting soon, streamers will earn a fixed amount for each Prime sub, regardless of the subscriber’s location. Additionally, it will be easier for smaller streamers to qualify for the Partner Plus program and enjoy a better subscription revenue split.

The price increase may impact subscribers, particularly those in countries with weaker currencies. For example, the Turkish lira has plummeted over the last 15 years, making the price increase a significant burden for Turkish subscribers. The change may also discourage potential subscribers from signing up, as the cost of subscribing to their favorite channels becomes more expensive.

Twitch’s decision to increase subscription prices in selected countries is a response to rising costs and local currency fluctuations. The move aims to help streamers earn more revenue while maintaining their current revenue share. However, the impact on subscribers, particularly those in countries with weaker currencies, remains to be seen.

In conclusion, Twitch’s decision to increase subscription prices in selected countries marks a significant shift in the platform’s monetization strategy. The changes will affect both streamers and subscribers, with potential implications for the growth and sustainability of the Twitch community. As Twitch continues to evolve, it will be essential to monitor the impact of these pricing adjustments on the platform’s user base and overall business performance.