Twitch announces a major change in subscription prices – but not for US-based users. Most non-U.S. Countries will receive lower prices, which will be localized to a specific country, starting with Turkey and Mexico on May 20th. These lower prices mean less money for streaming devices, but Twitch believes they will generate more subscribers and higher revenue in the long run.
Currently, the cheapest Twitch subscription, which allows fans to pay for streamers and receive benefits such as custom emoticons, currently costs $ 4.99, a price that is currently converted in local currencies around the world. The reverse price may be prohibitively expensive for some Twitch users, but Mike Minton, Twitch’s commercialization director, said. Limit in this week’s interview.
The purpose of the upcoming change is to make subscriptions more affordable for Twitch’s global audience. And Twitch’s early tests look promising: the company tested local pricing in Brazil and saw that direct sales revenue and subscriber numbers “more than doubled”. according to the blog post.
But Twitch is also preparing for a possible scenario where broadcasters could see their revenue fall as a result of price changes, as broadcasters need more subscribers – possibly much more – just to match their current revenue. If the streaming revenue falls below the normal base level (which Twitch calculates for each streaming device) after the introduction of localized prices, Twitch will pay the streaming to compensate for the difference in the “revenue adjustment incentive.”
Here’s some basic information about how the incentive works according to Twitch:
Twitch covers 100% of the base channel and Prime sub-income (if applicable) for three calendar months, including the month of the price change. We will then slowly reduce incentive payments by 25% every three months over the next 9 months, meaning a total period of 12 months to provide income adjustment incentives.
You can read all the details incentive.
Deployment will begin first in Turkey and Mexico, where subscription prices will be reduced to 9.90 Turkish lira (equivalent to $ 1.20) and 48 pesos (equivalent to $ 2.41). Twitch plans to bring local pricing to “most countries in Asia, Latin America, the Middle East, Africa and Europe by the third quarter of 2021,” according to Twitch’s blog. Localized pricing will also shift to two more expensive order levels and gift orders. And prices are not raised anywhere, they are just lowered.
Changes occur when many platforms want to give their creators better ways to earn their followers. Twitter is testing new Tip Jar feature and begin to spread ticket-based social sound rooms in the coming months, and the Clubhouse now gives people a chance pay creators directly (although not everyone can receive payments yet). While Twitch is not announcing new commercialization features today, lower subscription prices could lead to more people paying for streaming directly.