Twitch subscriptions are one of the main ways to monetize streamers. They are, together with donations in bits, the two direct routes (that is, through the platform itself) with which users can support broadcasts. Unlike bits, subscriptions are (or are intended to be) a show of continued support, which is renewed month after month, and in the vast majority of channels they usually carry rewards associated with them, ranging from channel exclusive emotes to interaction channels additional with the streamer and with the community.
Another reward associated with Twitch subscriptions on certain channels is: offer access to game servers and games for subscribers only. On one of the channels in which I am subscribed (currently four, although I have become subscribed to many more) the day of the sub is celebrated from time to time, with raffles only for subscribers, games also only for subs, etc. . In a channel that I was a sub a long time ago, and another that I am thinking of subscribing to, they have Minecraft servers in which the subscriber role gives you additional advantages, and so on.
As you can see, streamers are well aware of the importance of promoting Twitch subscriptions on their channels and consequently They incentivize them with rewards of all kinds, something that they also remember (in some cases more and in others less) throughout each direct. In addition, they sometimes set donation goals, either in one day or over time, which, when met, translate into raffles, special live streams, and more.
With this, it is understandable that the entire community is somewhat revolutionized, right now, by the announcement that Twitch subscriptions are going down in price in much of the world. A measure that, without a doubt, will be welcomed with great joy by the users of the platform, but that has caught streamers somewhat by surprise, who in these hours are analyzing and trying to assess the measure with the information from which have so far.
Twitch subscriptions for less than a euro?
Yes, although with nuances. It is its announcement, Twitch claims to have received feedback for a long time, from users outside the United States, in which it is indicated that the price of Twitch subscriptions is too expensive for local economies. And the truth is that the demand makes sense, because with some adjustment (for example, the false euro-dollar parity), the company has been charging around five dollars per subscription in all the countries of the world where the service is accessible , regardless of local economies.
For example, Twitch states the following: »The percentage of active users in Europe or Asia who support creators with a subscription is approximately 50% lower than in North America. In Latin America, it is almost 80% lower «. Obviously the approach to the question by continents does not contemplate the difference between different geographies within them. Let us remember that, if we talk about the European continent, Monaco’s GDP per capita in 2020 amounted to 158,917 euros, while Ukraine’s stood at 3,294 euros.
However, for price adjustments for Twitch subscriptions, the platform will carry out an analysis of each national economy and, based on said data, it will determine the appropriate price for each market. This is nothing new or revolutionary, many online services, especially those related to content, have different rates depending on the country from which they are hired. With this move, Twitch seems to adapt to that model that, seen from the outside, seems quite reasonable.
The first two countries to benefit from this change in the billing model for Twitch subscriptions will be Mexico and Turkey., in which from the 20th, tier 1 subscriptions (the cheapest) will cost 48 Mexican pesos (two euros at the current exchange rate) and 9.90 Turkish liras (0.98 euros at the current exchange rate). A reduction of 60% and 80% respectively, which, in addition, we understand that they will apply both to the own subscription and to those given to other channel users (regardless of their country, of course).
During the third quarter of this year, the adjustments in the prices of Twitch subscriptions will begin to arrive, according to the company, to most countries in Asia, Latin America, the Middle East, Africa and Europe. And, in case you fear that in some cases the change will translate into an increase, this is what Twitch says about it: “The most important thing is that the prices of subscriptions in the vast majority of countries outside the United States will be reduced «. Perhaps they will increase in the richest countries? It seems unlikely, I think that in any case the current price will be maintained.
And what about streamers?
Although Twitch does not make public the amount that streamers receive for each subscription, and also asks them not to make that information public either, It is known that the majority receive around 40% -45% of the amount thereof, so we are talking about just over two euros for every five subscription.
This, of course, means that if a subscriber now goes from paying five to paying two euros per month for Twitch subscriptions, for each one of them the streamer will receive 80 cents of euros. 40 cents for subscriptions for one euro, as will be the case in Turkey and, predictably, in other countries. A hypothetical Turkish streamer who has, say, 500 local subscribers, will go from receiving about 1,000 euros a month, to staying at approximately 200 euros. It’s not hard to imagine streamers’ concern at this point.
To ease the transition to the new rates, Twitch has announced some measures to mitigate the potential negative impact of the same in the billing of the content creators. Thus, for creators who meet certain requirements set by the platform, it will assume the costs of the change, ensuring that the reduction in price of Twitch subscriptions does not translate into a decrease in creators’ income, through an incentive system .
Within it, the platform will calculate an average revenue per hour transmitted live on the channels, and in the event of a decrease in them, Twitch will complete the monthly payment to the creators with the money necessary so that this decrease does not occur. This support will start at 100% and will gradually decrease over a year. This is what Twitch indicates about it:
“Twitch will cover 100% of the basic income of the channel and the Prime subscription (if necessary) for three calendar months, including the month of the price change. After that, we will slowly decrease incentive payments by 25% every three months for the next 9 months, totaling a 12-month period of providing income adjustment incentives.
Now a key point, of course, is find out which streamers can benefit from this incentive plan. Common sense leads us to think that partners should be on that list, although they may apply higher criteria than necessary to obtain that rank on the platform. I have more doubts about what will happen with the affiliates (the grade before the partner).
In addition to this, and even more important in the medium and long term, Twitch states that has already carried out several tests in various geographies, in which it has been able to verify that a significant reduction in the price of subscriptions has indeed translated into a significant increase in the total number of subscriptions in those countries. Their approach, which at least in theory seems pretty logical, is that with cheaper Twitch subscriptions, more users will sign up to support the channels they watch.
Twitch subscriptions are, as I said at the beginning, one of the main avenues of audience support for streamers, so modifying its price is a complicated move. Cheaper Twitch subscriptions can reduce creators’ income, but also increase it if Twitch has done the accounts right (and you think it will have done it, as it may also have a lot to lose if this goes wrong).
On the other hand, I have a doubt, and that is that we are talking about Twitch subscriptions of level (tier) 1, and what about those of levels 2 and 3? Will they maintain their current price or, on the contrary, will they also go down in price? Earlier I mentioned that I am currently a subscriber to four channels, three of them in tier 1 and one in tier 2. And I wonder if it would make sense to lower the price of Twitch subscriptions at higher levels. And I would like to have an opinion, but the fact is that at this moment I only have doubts.
What do you think of the price of Twitch subscriptions? Are you subscribed to any channel? Are there channels that you would support but, for the current price of Twitch subscriptions, you can’t? What price would you pay to support a channel?