Twitch announces global price drop on channel subscriptions

This is a rather unexpected press release that has just been released by Twitch. Indeed, the video streaming service has announced that users will soon not be paying so much money to subscribe to their favorite channels.

And these new prices will be decided according to the cost of living in the countries concerned.

Tariffs will move from this year on Twitch

On its blog, the service owned by Amazon published a long article to explain its new pricing policy which will be applied in the coming months. From the first lines, Twitch explains having heard its community asking for a price review. 

Currently, a one-month (Level 1) channel subscription is equivalent to around $ 4.99 in most countries. For example, it is € 4.99 in France, a conversion that is not very advantageous for French and European Internet users.

Twitch got this right by pointing out that the number of subscribers to content creators in Asia and Europe is 50% lower than in the United States. 

This difference is even 80% when the comparison is made with Latin America. Thus, the new prices will come into force during the year and will be modeled on the cost of living in each country.

First step before a large-scale deployment

Mexico and Turkey will benefit from these revised tariffs from May 20. They will be followed by most Asian and European countries from the third quarter of 2021.

Twitch specifies that “  in the vast majority of countries outside the United States, prices will drop  ”. This concerns subscriptions (renewal, new subscription, subscription offered) to all Twitch channels without any distinction.

Thus, the purpose of the maneuver is to encourage users to financially support the streamers. If they logically risk making less money on each subscription, Twitch is betting on a long-term profit since more viewers could get their hands on the wallet. 

The company indicates that tests carried out in recent months have proven this approach to be correct.

A real upheaval for creators?

However, Twitch recognizes that channel owners may initially be negatively affected by the price drop. To alleviate this inconvenience, a program will be set up for a period of 12 months in order to guarantee a certain level of income. 

If they meet several criteria, eligible creators will receive compensation in the event of losses related to these new prices.

Coverage of 100% of income will be spread over the first three months, then a 25% reduction will be applied every 90 days (i.e. total coverage extending over a full year). More details will be given in the coming weeks.

vSport Staff
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