Twitch is the latest to join the trend of raising subscription prices, following the footsteps of services like Spotify, Max, Peacock, Crunchyroll, and EA. The Amazon-owned platform announced on Tuesday, June 4, that its Tier 1 subscriptions in the US will increase from $4.99 to $5.99 starting July 11, marking the first price hike for American subscribers.
“To support creators in building and growing their communities globally, we have made subscription price adjustments in various countries as part of our Local Subscription Pricing,” Twitch stated in a support article.
In a separate response on social media platform X, Twitch clarified that streamers would continue to earn the same 50 to 70 percent through the revenue-sharing program, meaning they will earn more per subscription. However, this depends on maintaining or increasing subscriber numbers. An unpopular price increase could result in a decrease in paying subscribers if many users decide to opt-out.
Hints of a Price Hike
Twitch had hinted at this change earlier. In February, when subscription prices were raised in Canada, Australia, Turkey, and the UK, Chief Monetization Officer Mike Minton mentioned that a US price increase would “probably” happen this year. That prediction has now come true.
2024 has been challenging for Twitch, and the year is only halfway through. In January, the company laid off approximately 500 employees to “cut costs” and “build a more sustainable business,” as CEO Dan Clancy admitted the company was not profitable.
Additionally, Twitch reduced the earnings creators receive from Prime subscriptions. Last month, Twitch disbanded its Safety Advisory Council and replaced it with “Twitch Ambassadors,” who seem to resemble community volunteers.
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