After the success that Twitch found by dropping local subscription prices in Mexico and Turkey, they have decided to roll out the price drops worldwide. This will be a staggered rollout; the first wave of price drops has already launched for the LATAM and Asia Pacific regions.
Over the rest of this year Twitch will be reducing the price of subscriptions in most countries in order to better align them with the relative cost of living. They are not planning to increase prices in any country, but they are planning to change what has been roughly the equivalent of $4.99 USD to a price that is more manageable.
Right now, the price changes have come into effect in Asia Pacific and Latin America. They are planning to roll out the rest of the changes for the Middle East, Africa, and Europe starting in Q3 2021. They have said that they want to stagger the rollout in order to help content creators adjust to the changes.
What follows is a partial list of the subscription price changes for some of the countries that have already been affected.
In a blog post, Twitch outlined their reasons for the local price drops:
“We’ve heard from fans everywhere that it’s not equally affordable around the world to show support, access custom emotes, and enjoy all the other benefits that come with being a subscriber. That’s because the price of a Tier 1 subscription on the web is roughly the equivalent of $4.99 USD in every country. This price makes it difficult for many viewers to support their favourite creators, and likewise, prevents creators from being able to grow their communities, make more content, and welcome new fans.
“This isn’t just anecdotal; it’s reflected clearly in the numbers. The percentage of active users in Europe or Asia who support creators with a subscription is roughly 50% lower relative to North America. In Latin America, it’s nearly 80% lower.”
These price changes may affect some streamers revenue. In response to this, Twitch has said they are launching a 12-month program that guarantees a certain level of revenue for eligible creators. Twitch will cover 100% of baseline channel and Prime sub revenue for three calendar months, including the month of the price change. After that, they will slowly decrease incentive payments by 25% every three months over the following 9 months.
They are hoping that the payments will level out. Their current subscribers may be paying less but the reduced price could entice more folks to subscribe since they can now afford it. The initial rollout has been very successful but it remains to be seen if it will be as popular with the streamers themselves.