Twitch has revealed that it is dropping the price of some subscriptions internationally in a move designed to make the service more accessible.
Currently, a subscription to the Tier 1 version of Twitch costs a set fee of $4.99 regardless of where a user is located. But that will soon change, with local subscription pricing rolling out in countries around the world.
“It’s time for subscription pricing that’s adjusted for where viewers live,” Twitch announced in a blog post. “Over the next few months, we’ll be adjusting the price of subscriptions (existing subs, new paid subs, and gift subs) in most countries to better align with their local cost of living.”
Local subscription pricing will first be introduced in Turkey and Mexico on May 20, with most countries in Asia, Latin America, the Middle East, Africa, and Europe following by the third quarter of 2021. A subscription in Turkey will cost 9.90 Turkish lira (the equivalent of $1.19 USD) and a subscription in Mexico will cost 48 pesos (the equivalent of $2.43 USD).
While lower subscription prices will cause some disruption to revenues for creators, Twitch has confirmed it will subsidize some of the missing money. “Twitch will cover 100% of baseline channel and Prime sub revenue (if needed) for three calendar months, including the month of the price change,” the blog post says. “After that, we 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.”