The subscription streaming service will be rolling these new ‘local prices’ out slowly, with Mexico and Turkey benefitting from the first change on May 20.
Other countries in Asia, Latin America, Africa, Europe, and the Middle East will see changes coming into place by Q3 of 2021.
The Twitch model has, up until now, set a Tier 1 subscription fee at the equivalent of $4.99 in every country. The company says they have recognised that “this price makes it difficult for many viewers to support their favourite creators, and likewise, prevents creators from being able to grow their communities”.
In a press release, Twitch reiterated that “The most important thing to take away here is that subscription prices in the vast majority of countries outside of the US will be lowered”. From the implementation of these changes, Twitch viewers will be charged a different fee depending on where they live, to better reflect the cost of living in their country.
“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,” says the company, “Creator revenue is obviously really important, and we’ve kept them front of mind with every decision we’ve made.
Across the board, our tests clearly showed making subs more affordable for more viewers boosts creator revenue”.
To minimize potential fall in creator revenue in the short term, Twitch has implemented a 12-month program that “guarantees a certain level of revenue for eligible creators”. A full explanation of eligibility has been published on the Twitch website, but should cover 100 per cent of baseline channel subs and Prime sub revenue for up to three months.
After this period, Twitch will still support creators through the transition, slowly decreasing by 25 per cent every three months. The first rollout will be for Turkey and Mexico, and will begin on May 20.