In order to make Twitch subscriptions equally affordable around the world, local subscription prices are being introduced, the streaming platform announced on Monday.
Later this year, the vast majority of Twitch users outside of the U.S. will see subscription prices decrease. This is to better align a sub cost with the overall cost of living in other countries. Mexico and Turkey in particular have been vocal about this and will be first served on May 20. Changes to pricing for the rest of the world will be rolled out in Q3, 2021.
Twitch will cover part of the local subscription costs
It is possible that with lower sub fees comes less revenue for streamers on the platform. To make up for this, Twitch has launched a revenue adjustment incentive. For the first three months of the pricing adjustment, Twitch will cover 100 percent of the lost revenue. Then, the revenue assist program is lowered by 25 percent every three months for a total of 12 months of revenue adjustments. There are some requirements for the streamer involved though, based on certain criteria and their individual streaming statistics.
While Twitch is set to launch advertisement campaigns to raise awareness in the included countries, the company also asks streamers to do their part. By announcing the news live and sharing it with its audience, Twitch hopes streamers will help them make as many people aware as possible.
Twitch subscription numbers tell the story
According to Twitch, users who support their favorite content creators are roughly 50 percent lower in Europe and nearly 80 percent lower in Latin America, when compared to North America.
Because of this, as well as pleas from different communities, Twitch conducted several tests and came to a conclusion. The platform “saw that lower sub prices boosted overall monthly subs and sub revenue for creators. In one recent test in Brazil, lower sub prices more than doubled creator revenue and total subscriber count.”
Local Twitch subscription prices in Turkey and Mexico will be 9.90 Turkish lira and 48 pesos, $1.19 and $2.42 respectively.