Twitch users in Mexico and Turkey are in for an early treat, as the company will lower its subscription prices in these countries on May 20. Other countries will follow suit with decreased costs in the third quarter of 2021.
A Twitch subscription gives its subscribers the ability to pay their favorite streamers and other perks like using custom emotes.
Currently, Tier 1, the basic and most affordable plan, is priced at $4.99, or whatever the equivalent is across the world. Hence, every country is paying the same price -- which may sound hefty when converted to the currency of other communities.
Helping Streamers Grow Elsewhere
The company said in its blog that the current subscription cost hinders viewers to support their favorite gamers. Hence, it also slows down the growth of the streamers' community elsewhere.
And to back it up with data, the gaming live streaming service showed data that users in Europe and Asia subscribed to Twitch are 50% lower than in North America. In Latin America, the number goes significantly lower, at 80%.
"Over the next few months, we'll be adjusting the price of subscriptions (existing subs, new paid subs, and gift subs) in most countries to better align with their local cost of living," Twitch explained in the same blog post.
Furthermore, the company said that the new pricing model is meant to ensure that the costs match the viewers around the world. More specifically, Mexico and Turkey subscriptions, as they debut the new prices, will be at 48 Pesos and 9.90 TRY, respectively.
The Verge noted that the said adjustments in prices came a few days after Twitter announced a means for users to support creators called Tip Jar. Clubhouse, likewise, is also allowing direct monetization for its creators.
Will Streamers Earn Less
Separately, Twitch said on its website that there will be "revenue adjustments" for the incentives of streamers. The company warned that the lower subscription prices will lead to lower revenue for streamers who will not increase their viewers.
In the first three months of a whole 12-month period, there won't be any revenue adjustments. It is because Twitch vowed to cover the revenue for the first few months. The incentive payment, however, in the next nine months is said to decrease by 25%. It would occur three times every three months.
The hope of creators remains anchored to the prediction of Twitch that the new subscription pricing will welcome more users across the globe.
This article is owned by Tech Times.
Written by Teejay Boris