Twitch has decided to implement pricing adjustments for subscriptions outside of the US, to match them closer to the cost of living in other countries. According to a post from the company, the change was prompted by feedback from consumers. When speaking about its current subscription prices, Twitch stated, “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 price changes for subscriptions include paid and gifted, and over the coming months these rates in most countries will “better align with their local cost of living.” The first two countries that will go through this change are Mexico and Turkey, who will have their prices adjusted on May 20th. In Mexico, the cost will drop from 99 Pesos to 48 Pesos. Turkey’s subscription price will go from 42 TRY to 10 TRY. Twitch chose these two countries first because they contain “creators and viewers who have been passionate about this change for quite some time.”
Twitch’s pricing adjustments will be heading out to numerous other countries in Asia, Latin America, the Middle East, Africa, and Europe–starting in the third Fiscal quarter of 2021.
The company believes that cutting the subscriptions won’t hurt content creators financially. According to “tests” done by Twitch, “making subs more affordable for more viewers boost creator revenue.” However, Twitch did acknowledge that what will actually happen when these changes come into effect may vary from their test results. To prevent a revenue issue, Twitch is launching a 12-month program that pays a certain amount of projected revenue to eligible creators.