The Twitch platform is an interactive streaming service for people to live broadcast gaming, entertainment, daily life, etc. In return, live streamers get paid based on their monthly viewership, ad revenue, affiliate links, donations, and sponsorships. Other than the above-mentioned sources, subscriptions are a great revenue generator for the streamers.
Twitch subscriptions allow the viewers to pay a minimum amount of money to subscribe to their favorite live streamer. A share of that expenditure goes directly to support their content and channel since a percentage of the total subscription money is paid to the creator. Viewers can after that enjoy custom-made and animated emotes, badges, an ad-free viewing experience, and more.
However, now Twitch has been making significant changes to make the business profitable. Dan Clancy announced in January 2024 that Twitch was not making any profits. He also added, “Big thing for being sustainable over time is ensuring we don’t lose money.” Since then, they have taken drastic measures like reducing Prime subscription earnings, and more. Now, the streaming platform has increased its subscription prices.
Twitch said, “We are updating prices in several countries to help streamer revenue keep pace with rising costs and reflect local currency fluctuations.” They announced an increase in Tier 1 subscription and gift sub prices in Australia, Canada, and the UK. Whereas Turkey will face an increase in all 3 tiers of subscription and gift sub prices. In Australia, prices will increase from $7.99 to $8.99, $6.99 to $7.99 in Canada, and £3.99 to £4.99 in the UK. In Turkey, Tier 1 prices were raised from TRY 9.90 to TRY 43.90, TRY 19.99 to TRY 87.90 for Tier 2, and TRY 49.99 to TRY 215.90 for Tier 3. It is important to note that these prices are only applicable to web subscriptions only.
Will Twitch increase subscription prices in the United States?
Based on Twitch’s current trend, there is a huge possibility of an increase in subscription prices in the United States. Furthermore, rumors from various sources have also made claims of a possible increase in subscription prices. However, it is to be duly noted that there are going to be both pros and cons to the price changes.
Since live streamers use subscriptions as a medium to earn money and thereby develop their content and channel, they are going to be highly profitable. Twitch has not made any changes to streamers’ revenue cut so an increase in subscription prices will directly result in more revenue earned from each sub by the live streamer. Unfortunately, on the other hand, viewers will hesitate to buy subscriptions which in turn will be a loss to the creators.
The online community was in accepting how most people will not choose to subscribe hereafter. They also pointed out how this will force more streamers to switch from Twitch to Kick.com. A commenter stated Kick was looking really good at the moment. While another person stated he would rather Cash App his favorite streamer instead of going through Twitch. A Twitter user claimed this step would only hurt streamers and not help them in any way.
