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Twitch Introduces One Of Its Biggest Changes Yet With Localized Subscription Pricing
Twitch has announced some big changes in the subscription prices. This change will not pertain to only the USA, but to most countries with Twitch accessibility. Twitch is going to adjust subscription prices based on the price of living. Therefore, other countries will not see a price equivalent to $4.99.
The Amazon platform reportedly made this decision after observing some stats from the other countries. Most countries seem to avoid paid subscription because the $5 mark might be a tad too much. Twitch has taken this account into consideration after observing and comparing numbers of North America with other continents.
We’re rolling out one of the biggest changes in Twitch history, which will help creators build larger, more global communities: Local Subs Pricing.
The price of a sub in most countries will be lowered, starting with Mexico and Turkey.
Learn more: https://t.co/LzKQxynb5B pic.twitter.com/zNBeRC4WyO
— Twitch (@Twitch) May 17, 2021
“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.”
This new practice is going to start with Mexico and Turkey on May 20. Lowered subscription prices will therefore mean less money for the creators. However, Twitch is looking at this endeavour in the long run. While the fans will find it more affordable to continue supporting their favorite streamers, the creators will also invite more subscriptions. The low numbers in the South East Asia or Latin America will rise because of this new pricing. More subscription will ultimately entail more money for the creators.
“This change will make it easier for creators everywhere to grow their communities, while making it more affordable for viewers to show their support and access subscriber benefits like ad-free viewing (when enabled by the creator), custom channel emotes, sub tenure badges, Channel Point multipliers, and sub-only chat mode.”
Twitch will cover up for low earnings of the streamers
While these new prices will ensure more audience on the platform, streamers will not receive the same revenue from their existing audience pool. They will have to gain a lot more subscribers to match what they earn now. According to the official report, the test run in Brazil has proved that viewers have doubled. This makes Twitch’s endeavors successful but less revenue for the streamers.
To avoid this factor, twitch will cover up the lost revenue via “revenue adjustment incentive”. This incentive will work in a certain fashion and only for a certain time period. During that time creators have to use their influence and grow their individual audience pool.
“Twitch will cover 100% of baseline channel and Prime sub revenue (if needed) for three calendar months, including the month of the price change. After that, we will slowly decrease incentive payments by 25% every three months over the following 9 months, totaling a 12-month period of providing revenue adjustment incentives.”
Local Subscription Pricing will come to “most countries in Asia, Latin America, the Middle East, Africa, and Europe starting in Q3 2021.”
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