Twitch has announced that it is increasing subscription costs in the USA for the first time, as well as in 30 other countries, in a bid to boost revenue for creators.
The Amazon-owned live-streaming giant has had a tumultuous year both in terms of revenue and company culture.
Dan Clancy, Twitch‘s CEO, earlier conceded that the company wasn’t profitable, and it seems the recent layoffs haven’t helped either.
Following the Twitch subscription price hike in the UK, Canada, Australia, and Turkey in February, the company has announced that it will be raising prices in the USA as well as in 30 other countries.
Twitch has now officialized the price hike for subscriptions, which was imminent after CMO Mike Minton subtly mentioned it in February.
Subscribers in more than 30 countries faces a price increase, set to take effect on July 11, 2024, unless they opt to cancel their subscription prior to that date.
It’s worth noting that this will mark Twitch’s first tier-1 subscription price hike in the USA.
Twitch subscription price in the USA set to increase by 18%
Starting mid-July, the price for a tier-1 subscription in the USA will go from the previous $4.99 to $5.99.
This 18% hike isn’t consistent across the board. According to Twitch, the bump in price is based on the cost of living in each country.
For this reason, subscribers in Turkey will have to pay TRY 43.90, and those in Canada will pay CAD 7.99.
This pricing adjustment applies to the following subscription types:
- Tier 1, tier 2, and tier 3 subscription levels
- Community gift subs
- Single gift subs
- Multi-month subscriptions
Unsurprisingly, users aren’t particularly pleased about the changes. Their main concern is whether streamers will benefit from them.
In response to community-wide concern, Twitch confirmed that while streamer cuts would work the same, they will naturally gain extra income due to the increased subscription pricing.
However, that only depends on subscriber retention after the new Twitch subscription rate changes. It’s highly likely that some people may choose to cancel their tier-1 subscription, which won’t necessarily benefit the creators.
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