Streaming platform Twitch will begin rolling out reduced subscription pricing in markets outside of the U.S. later this week. According to the company, the baseline $4.99 USD subscription price became prohibitively expensive when localized into some currencies.
The change could result in a decrease in revenue from Twitch streamers, who receive a significant portion of their monthly income based on a percentage of each subscription purchased for their channel. A reduced fee means a reduced cut for the streamer.
However, Twitch stated that in an early test with localized pricing in Brazil, the company saw streamer revenue and total subscriber count “more than doubled.” Additionally, should the revised pricing negatively impact a streamer’s bottom line, Twitch has a plan in place to mitigate the issue. The platform calculates a typical baseline subscription revenue for each streamer, and should any channel fall below that baseline following the localized pricing roll out, the company will provide that streamer with a “revenue adjustment incentive,” in compensation.
New prices will arrive first in Turkey and Mexico, with prices reduced to the equivalent of $1.20 and $2.41 respectively. Higher tier subscriptions will also have their prices localized. According to Twitch, localized pricing will be rolled out to “most countries in Asia, Latin America, the Middle East, Africa, and Europe starting in Q3 2021.”
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