Twitch is joining Spotify, Max, Peacock, Crunchyroll, EA and other content services in everyone’s favorite corporate trend of raising subscription prices (almost as fun as the parallel trend of Big Tech layoffs). The Amazon-owned company said on Tuesday that Twitch Tier 1 subscriptions in the US will increase from $4.99 to $5.99 on July 11. This is the first time the monthly cost has gone up for American subscribers.
“As part of our efforts to help creators build and grow their communities worldwide, the following countries received subscription price adjustments as a part of Local Subscription Pricing,” the company wrote in a support article.
In a separate X reply, the company clarified that streamers will still earn the same 50 to 70 percent through Twitch’s revenue-sharing program, so they will earn more per subscription (likely the rationalization for the questionable “It’s for the creators!” framing). However, streamers’ earning extra revenue depends on Twitch’s subscriber numbers staying the same or increasing. An unpopular price hike could lead to a loss of paying subscribers if enough people shirk the increase.
Twitch had warned this day would come. When the company raised subscription prices in Canada, Australia, Turkey and the UK in February, Chief Monetization Officer Mike Minton added that a US subscription increase would “probably” arrive sometime this year. And here we are.
The company has had a rough 2024, and we aren’t even at the halfway point. Twitch laid off a reported 500 employees in January to “cut costs” and “build a more sustainable business” as CEO Dan Clancy admitted the company wasn’t profitable. For good measure, it cut how much creators earn from Prime subscriptions. Then, late last month, it removed every member of its Safety Advisory Council, replacing them with “Twitch Ambassadors,” which sounds an awful lot like community volunteers.
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