Twitch
Twitch

Twitch raises US Subscription prices for first time

What To Know

  • In a support article, Twitch explained that the price adjustment is part of their efforts to help creators grow their communities worldwide.
  • In a separate reply on X, Twitch clarified that streamers would still earn the same 50 to 70 percent through Twitch’s revenue-sharing program, meaning they would earn more per subscription.
  • This is likely the reasoning behind the company’s claim that the price hike is for the creators’ benefit.
  • When subscription prices were raised in Canada, Australia, Turkey, and the UK in February, Chief Monetization Officer Mike Minton indicated that a US subscription increase would “probably” happen this year.

Twitch is joining the trend of raising subscription prices, much like Spotify, Max, Peacock, Crunchyroll, and EA. The Amazon-owned platform announced that starting July 11, Twitch Tier 1 subscriptions in the US will increase from $4.99 to $5.99. This marks the first time the monthly cost has risen for American subscribers.

In a support article, Twitch explained that the price adjustment is part of their efforts to help creators grow their communities worldwide. They mentioned that several countries had already received subscription price adjustments under the Local Subscription Pricing initiative.

In a separate reply on X, Twitch clarified that streamers would still earn the same 50 to 70 percent through Twitch’s revenue-sharing program, meaning they would earn more per subscription. This is likely the reasoning behind the company’s claim that the price hike is for the creators’ benefit. However, this increased revenue for streamers is contingent on subscriber numbers remaining stable or growing. If the price hike results in a significant loss of paying subscribers, streamers might not see the anticipated benefits.

Twitch had previously hinted that this price increase was coming. When subscription prices were raised in Canada, Australia, Turkey, and the UK in February, Chief Monetization Officer Mike Minton indicated that a US subscription increase would “probably” happen this year. Now, that prediction has come true.

The year 2024 has been challenging for Twitch, and it’s not even halfway through. In January, Twitch laid off around 500 employees to “cut costs” and “build a more sustainable business,” as CEO Dan Clancy admitted the company was not profitable.

Additionally, Twitch reduced the earnings creators receive from Prime subscriptions. Then, in late May, Twitch disbanded its Safety Advisory Council and replaced it with “Twitch Ambassadors,” a move that appears to shift responsibilities to community volunteers.

This series of changes, including the subscription price hike, reflects the broader pressures and challenges faced by tech and content service companies. As Twitch navigates these adjustments, the impact on its user base and content creators remains to be seen.