Twitch announced in May that it was revolutionizing its subscription system. If until then the price of Tier 1 subscriptions on the web was equivalent to roughly US $ 4.99 in all countries, that would change. In fact, has already started to change and streamers they are noticing it in their income in a remarkable way. They earn less.
Marco Cubí, known as Xamork, has published an eloquent tweet about it this Wednesday. “9 Subs given away yesterday, I earn $ 10, about € 8. Before, for 9 subs I would have earned $ 18, about € 16., he wrote.
The price of $ 4.99 per month for subscriptions worldwide was a problem that causes inequality, argues Twitch
In countries like Spain, the price of subscriptions remains at the usual price, although we are already immersed in the third quarter, the period chosen by the platform to apply the general reduction. In other markets, such as Latin America, discounts exceed 50%. Subscription prices in the vast majority of countries, leaving aside the United States, will be reduced.
Cheaper subscriptions, lower income?
Since the end of July, Latin America, the Middle East and Africa already have local subscriptions. These subscriptions take into account, Twitch explained, that $ 4.99 for everyone was a problem.
“Fans have commented that subscription affordability is uneven around the world. […] This price makes it difficult for many viewers to support their favorite creators, and in the same way, it prevents creators from growing their communities, creating more content and receiving new fans, “they wrote in the announcement of the expansion of this type of subs.
The platform believes that the lower prices will drive the growth of communities and the income of creators in the long term
Twitch put figures on the problem by ensuring that the percentage of active users who in Europe or Asia support creators with a subscription is approximately 50% lower than in North America. In Latin America, this percentage goes up to almost 80%. This, along with the argument that lower prices will boost long-term growth and revenue, are the justifications of the Amazon platform.
The new problem is that creators are beginning to notice the effects of the downgrade. He made it clear in his tweet Xamork and explains it to Genbeta: “Not knowing what we are going to charge prevents us from organizing our income, in a world that already complicates it since each month they vary a lot “.
“Not knowing what we are going to charge prevents us from organizing our income, in a world that already complicates it since each month they vary a lot”
The content creator believes that with the reduction he is likely to earn half what he did last month. “The problem is that whoever could not pay $ 5 before will not pay $ 2-3 now; if you have financial problems, you do not spend on subscribing to Twitch channels, it is not a question of price but of priorities, so they sell us the moto that there will be many more subscriptions is totally a lie … Time will tell, “he says.
Twitch, which will continue to adjust the price of both current subscriptions and those paid or new gifts after starting in Mexico and Turkey during May, assures that in these two pioneering countries “viewers are giving away five times more subscriptions “. Although he knows that it will be a problem and that is why has launched an aid program for creators subject to certain requirements.
Twitch will cover part of the income previously received by creators, although only those who broadcast at least 85% of their live reference hours in a month will be able to access this aid program, among other requirements.
The program lasts for one year and “guarantees a certain level of income for eligible creators“. Twitch will cover the total revenue from the base channel and Prime subscriptions for three calendar months, including the month of the price change, they explained. After this period, the incentive payments will be reduced by 25% every three months. for the next 9 months until completion. “Average Referral Earnings” is the starting point and eligible creators must broadcast at least 85% of their referral live hours in a month and meet other undisclosed eligibility criteria .
“I will not leave Twitch, but it will be a big stick and it will be difficult to get ahead”
Xamork’s opinion is endorsed by other creators in appointments of his tweet, which has started to go viral. “We are going to be quite affected small / medium streamers, because there are still people who also cannot subscribe even with the sales”, points out Rodenasink. “That said, the new subs are NOT GOING TO COMPENSATE the general drop in prices on your regular subs. A fucking time is coming for all small streamers. Find a Plan B for you.“, tweet Gérier.
Cubí believes that the price reduction of subs is a Twitch strategy to increase your income. “The only thing that is going to achieve is that SOME who subscribed to one channel now subscribe to two, maybe some do, but the majority of people who were not subscribed I doubt that they will subscribe because they save $ 2”. Will Xamork leave the platform in this situation? “I will not leave Twitch, but it will be a big stick and it will be difficult to get ahead”, concludes.