Published , by Ozzie Mejia
Published , by Ozzie Mejia
Twitch continues to search for new ways to help boost revenue. The latest move involves raising the price for Tier 1 subscriptions across 30 countries, including the United States and Canada. Twitch users with Tier 1 subscriptions to any channel will see that price increase automatically starting in July unless they cancel first.
Twitch's Tier 1 subscription price increase was first announced on the Twitch Support X (formerly Twitter) account. The details there were vague, but Twitch went into further detail in emails sent to various Twitch subscribers across the affected 30 countries. Here's a portion of the email sent to U.S. users:
Starting July 11, we're updating Tier 1 subscription and gift sub prices on the web in your country for current subscribers. Your existing subscriptions will automatically renew at 5.99 USD unless you choose to cancel. You can manage or cancel your subscriptions by going to twitch.tv/subscriptions.
We are increasing subscription prices in over 30 countries to drive more revenue to our streamers and help make streaming more sustainable. Streamers will continue to receive the same net revenue share on subs and gift subs, so this price increase allows them to receive more per subscription. The increased revenue per sub that Twitch receives helps us maintain and build for the long-term future of streaming.
We are not changing the price of Tier 2 or Tier 3 subscriptions or gift subs at this time. These updates apply only to subscriptions purchased on desktop or mobile web. We'll be updating prices on mobile apps in the coming months and will notify you of any changes at least 30 days in advance. You can learn more in our help article and you can bring your questions to Patch Notes on June 12 at 1pm PT.
This hasn't been a good year for Twitch so far. The company continues to scramble to make cutbacks. This helped lead to the closure of operations in Korea late last year, as well as substantial layoffs.
Whether the subscription price increase helps alleviate Twitch's woes or simply delays more debilitating moves remains to be seen. We'll continue to monitor this situation at Shacknews.