Despite having been on the market for more than 10 years, Twitch, formerly known as Justin TV, seems to still be clear about the business model to follow, or at least that is the impression that Amazon’s platform gives to transmit all kinds of of content over the Internet, although it is mainly used for video games.
A couple of years ago, Twitch modified the price of subscriptions in most of the countries in which it is available in order to adapt it to the economy of each one. In this way, in Spain, the price of the subscription fell from 4.99 euros to 3.99 current euros.
In other countries, the price drop was much larger, a drop that ended up having a negative impact on streamers’ income, even though Twitch’s thinking was that, by lowering prices, a greater number of subscribers would be subscribed. users.
A few months ago, Twitch announced that the income streamers receive through Prime subscriptions (included in the Amazon subscription), were reduced considerably, another hard blow for this community, since the majority of subscribers use this method to support the channel or channels they like the most.
In January, it laid off more than 500 employees in a move to reduce costs, however, it appears that Twitch’s business remains unprofitable and the new measure to solve the problem is to raise the price.
Twitch Tier 1 subscription increases in price
A few days ago, Spotify announced a new price increase for all the plans it offers (except the student plan), an increase that sooner or later will end up reaching Europe. The latest big company to just jump on the price hike bandwagon is Twitch.
Through the Twitch account on X (Twitter), the purple platform has just announced a new price increase for level 1 subscriptions, the cheapest subscription of the 3 offered by this platform.
Starting July 11, we’re increasing sub and gift prices on web in over 30 regions: New Zealand, the US, and multiple countries in Europe.
You can bring your questions to Patch Notes on June 12 at 1pm PT.
We are notifying streamers and subscribers in these regions via… https://t.co/xHyDvGMZjf https://t.co/dVLDgxZxGH
June 5, 2024 • 19:02
Starting July 11, we’re increasing sub and gift prices on web in over 30 regions: New Zealand, the US, and multiple countries in Europe.
You can bring your questions to Patch Notes on June 12 at 1pm PT.
We are notifying streamers and subscribers in these regions via… https://t.co/xHyDvGMZjf https://t.co/dVLDgxZxGH
Increases from 3.99 to 4.99 euros per month
As we mentioned above, currently, the Twitch level 1 subscription has a price of 3.99 euros, a price that will rise to 4.99 euros from that same date. As we can see in this link to the Twitch support page The price of new subscriptions will increase by one euro. Streaming on Twitch is slowly becoming a very unprofitable job.
In this way, the price of level 1 subscription returns to the same level as two years ago, when the purple platform adjusted the price of subscriptions based on the purchasing power of each country. The distribution between the platform and the streamers will remain the same, between 50 and 70% for the content creator, so, if the number of subscribers is not affected, they will earn more money.
However, it could have the opposite effect and lead to a loss of subscribers for content creators if current users are not willing to pay more for the same thing. Once again, smaller streamers will be the most affected, even though Twitch continues to claim that these measures are taken to grow small communities.