A recent blog post by Twitch revealed that regional pricing for subscriptions may be introduced in many countries. Twitch acknowledged feedback from fans that it is not equally affordable around the world to show support to streamers and enjoy the benefits that come with subscriptions. The price of Tier 1 subscriptions is on par with $4.99 USD in all countries. This pricing model has made it difficult for viewers in some countries to show support and it also restricts creators from being able to grow their local communities. Twitch is looking to introduce regional pricing in regions like Asia, Latin America, the Middle East, Africa, and Europe starting Q3 2021.
Twitch revealed that the percentage of active users in Europe or Asia who subscribe to streamers is roughly 50% lower than users in North America. Twitch announced that it’s “time for subscription pricing that’s adjusted for where viewers live. Prices that make it so more people than ever can feel comfortable showing their support and enjoying the benefits of a subscription.”
Over the next few months, Twitch will be adjusting the prices of subscriptions globally. This will include existing subs, new paid subs, and gift subs in most countries. The new prices will be aligned with the cost of living in the targeted regions. Mexico and Turkey are set to receive regional pricing on May 20, 2021.
The next set of countries that will experience regional pricing will include Asia, Latin America, the Middle East, Africa and Europe from Q3 2021. The pricing changes will be rolled out gradually and Twitch will be working with the community to implement the changes.
Starting from May 20, 2021 the regional price in Turkey for a Tier 1 sub will be set at 9.90 TRY, and viewers from Mexico will pay 48 Pesos.
Twitch revealed that even though the prices of subscriptions will be lowered in various regions, it should still boost creator revenue. However, to avoid any potential dips in creator revenue, the company is launching a 12-month program to ensure a certain level of revenue for all eligible creators.
Twitch will cover 100% baseline channel and Prime sub revenue for three calendar months following the price change. Following the period Twitch will “slowly decrease incentive payments by 25% every three months over the following 9 months, totaling a 12-month period of providing revenue adjustment incentives.”
As long as that creator streams at least 85% of their live baseline hours in a month and meets certain other eligibility criteria, Twitch will make up for any lost revenue from subs. Once local sub pricing begins rolling out, eligible creators will be able to use their Creator Dashboard to view their monthly baseline amounts, actual subscription revenue, and upcoming streaming requirements.
Twitch announced the full list of countries that will receive regional pricing. In Southeast Asia, Twitch will be rolling regional pricing for the Philippines, India, Indonesia, Malaysia, Vietnam, and more.
For the full list of countries, viewers can visit: https://help.twitch.tv/s/article/local-sub-price-countries?language=en_US#asia