Twitch has become the preferred platform for streaming gamers, particularly those who are looking to earn from their streams. Whether creators are streaming Call of Duty or World of Warcraft, Twitch is the place to be. But the cost for a monthly subscription can be prohibitive, depending on where the streamer is located.
In some cases, the cost could be even higher than what the streamer can potentially earn locally. However, with an upcoming update, Twitch is looking to rectify this with a new localized pricing scheme. We look at the details released by Twitch and what the upcoming localization fees entail for creators and streamers.
Why The Change For Local Twitch Pricing?
As the number of Twitch streamers continues to grow, the standard price for a Twitch subscription has become a roadblock for some. Prior to the current changes, all Twitch streamers paid for at least $4.99 for the lowest Twitch subscription. While streamers located in the United States may consider this to be a fair price, other streamers located in other countries may not. This is especially true for less developed countries which impose taxes and have a fluctuating conversion rate versus the US dollar, depending on the local and national economy at any given time.
We’re rolling out one of the biggest changes in Twitch history, which will help creators build larger, more global communities: Local Subs Pricing.
The price of a sub in most countries will be lowered, starting with Mexico and Turkey.
— Twitch (@Twitch) May 17, 2021
The premise of this update is to provide a fairer pricing scheme for streamers located outside the United States. Thus, instead of the standard $4.99 being converted into local currency, every geographic location will have its own subscription pricing to use Twitch. Theoretically, this will improve the return of investment (ROI) of Twitch streamers, as the price will align with their localized cost of living. The Twitch subscription pricing update will be applied to the following subscription levels and types:
- Tier 1, 2, and 3 subscription levels
- Community Gift subscriptions
- Single Gift subscriptions
- Multiple month subscriptions
Although this may seem more favorable to everyone, there is a caveat to consider. This pricing localization can also be a double edged sword and may mean that the revenue a non-US streamer is currently earning through Twitch monetization could drastically change as well. It may translate to needing to attract and maintain a larger number of followers and viewers in order to keep up with what they have already established thus far.
Twitch Local Pricing Will Be Staggered
It should be noted that the updated Twitch localization pricing will not be released for everyone at the same time. According to Twitch:
Local subscription prices are being adjusted slowly and not all countries will see the price changes at the same time. We are starting the roll out in Turkey and Mexico first before launching adjusted prices in most countries in Asia, Latin America, the Middle East, Africa and Europe.
The roll out for the streaming service's updated subscription fee in Mexico and Turkey will begin on May 20. There is no definitive date set for when the remaining locations across the globe will have the localization subscription fees applied, but the projections are for the 3rd quarter of 2021. Currently, the list of countries that will be included in the Twitch pricing update are in the regions of Africa, Asia Pacific, Caribbean, Europe, Latin America, Oceania, Middle East, and South America.
Exceptions and Adjustment Incentive
Aside from the United States, there are other locations that will not have this localization of fees. These include Canada, Israel, Japan, and Switzerland.
In addition, Twitch will be offering a Creator Revenue Adjustment Incentive. This program is tied in with the updated localized subscription fees and intended to assist with the potential impact on existing streamers. As Twitch states:
The creator revenue adjustment incentive guarantees 100% of all eligible creator’s recurring, Community Gifting, Single Gift, Multi-month and Prime sub revenue for three calendar months, including the month of the price change after they may be impacted by the price changes. The adjustment incentive is based on a creator's previous three-month average (baseline) of paid and Prime subscription revenue and hours broadcast. Eligible creators will qualify for revenue adjustments for up to 12-months when 20% or more of their sub revenue comes from viewers impacted by local subscription pricing.
On months that the creator outperforms the baseline earnings ratio, they will not receive any revenue adjustment. Twitch streamers can check if they are eligible for the program in the Channel Analytics tab on their Twitch Dashboard. Note that this incentive program will only operate for three calendar months (including the month of the local pricing update).
Twitch is encouraging creators and streamers to inform their viewers of the local subscription pricing update. This includes using promotional tools such as setting sub goals and sub gifting in return for unlocking sub emote slots.
Twitch has been adding more programs and updates to entice more streamers and creators to use the platform. According to the company, there will be additional changes to create a more global community. Improved e-sports and niche gaming coverage are also on the horizon. Stay tuned for Xfire’s coverage as more Twitch update releases are rolled out.