Twitch is Raising US Subscription Prices for the First Time
Twitch subscribers in the US will soon see a change in their monthly expenses. Starting in July, the cost of a Tier 1 subscription will increase by $1, going from $4.99 to $5.99. This marks the first time that the Amazon-owned platform has raised its subscription prices for American users.
Why the Price Hike?
Twitch explained that this adjustment is part of a broader strategy to support creators in growing their communities worldwide. The platform has already implemented local subscription pricing adjustments in several countries, including Canada, Australia, Turkey, and the UK. Now, the US is following suit.
Impact on Streamers
Despite the price hike, Twitch reassures that streamers will continue to earn the same percentage through its revenue-sharing program, meaning they will receive more money per subscription. However, this increase in revenue is contingent on the subscriber base remaining stable or growing. If many users decide to cancel their subscriptions due to the price increase, the anticipated revenue boost for streamers might not materialize.
Anticipated Changes
The warning signs were there. Back in February, Twitch's Chief Monetization Officer, Mike Minton, hinted that a US price increase was likely to happen this year. Given the recent changes in other regions, this move was somewhat expected.
A Challenging Year for Twitch
2024 has been a tough year for Twitch, and we're only halfway through. In January, the company laid off around 500 employees in an effort to reduce costs and strive for a more sustainable business model. CEO Dan Clancy admitted that the platform wasn't profitable. Additionally, Twitch reduced the earnings creators receive from Prime subscriptions and recently disbanded its Safety Advisory Council, replacing it with "Twitch Ambassadors," which seems to involve community volunteers rather than paid positions.
Looking Ahead
As a subscriber, you may feel the pinch of this price increase. However, Twitch’s goal is to provide better support for creators, which could lead to more engaging and higher-quality content on the platform. Time will tell if this strategy pays off, both for Twitch and its vast community of streamers and viewers.