Social media gaming platform Twitch announced it is changing its subscription plan to make it more affordable to people in other countries while also upping the money it gives to its creators.
Twitch charges about $5 monthly for a subscription no matter what country people reside but the company said it realizes that the pricing might not be fair to some regions. The live streaming service is now dropping prices in many places to reflect the regions’ cost of living.
“We’re confident lower sub prices will boost creator growth and revenue in the long-term, but we knew we also had to minimize potential dips in creator revenue during this early adjustment period. To help creators adapt to the new pricing model with no impact to their short-term subscription revenue, we’re launching a 12-month program that guarantees a certain level of revenue for eligible creators,” Twitch said in a Monday (May 17) blog post.
Twitch said it will also help creators ”grow and build communities” and will be rolling out campaigns to countries worldwide. The Silicon Valley company was launched 2007.
“To take advantage of this increased awareness, it’s critical that creators do their part to make sure their communities know about the new lower sub pricing. One great way to do this is by announcing the update live on your stream,” per the release.
The drop in subscription prices begins on Thursday (May 20) and will benefit customers in Mexico, Turkey. Other countries including Africa, Asia, Europe, Latin America and the Middle East will get price cuts in the third quarter of 2021.
Backed by Amazon, Twitch is looking to streamline the process so users can easily support their favorite creators, according to the press release. Active users in Europe or Asia that support creators is half of what people spend in North America and 80 percent less than people spend in Latin America. Lower subscription prices can change that, the company said.
Twitch recently launched an affiliate program to enable eligible streamers to earn income while building their audience.
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