Twitch’s New Subscription Rates: What It Means for Streamers

Why Trust Techopedia
Key Takeaways

  • Twitch is increasing Tier 1 subscription prices in the US from $4.99 to $5.99 monthly in over 30 countries.
  • The price hike aligns with trends seen in other streaming platforms like Spotify and Netflix.
  • The increase may improve streamer revenue but could also lead to viewers cutting back on subscriptions or switching platforms.

Amazon-owned video game streaming platform Twitch is shaking things up with its first-ever subscription price increase in the US.

The most common tier, Tier 1 subscriptions, will increase from $4.99 to $5.99 monthly starting July 11.

The announcement was initially made on Twitch Support. It revealed that the price hike will affect over 30 countries, including New Zealand and several European countries.

Twitch also took to X to assure streamers they’ll continue earning according to their revenue share and even more revenue on subscriptions due to the price bump.

Twitch’s decision to raise prices aligns with a broader pattern observed across various streaming and content platforms.

Over the past few years, companies like Spotify, Netflix, and Max have implemented similar subscription fee hikes, often citing the need to adequately compensate content creators and ensure the long-term viability of their respective platforms.

What Does This Mean for Streamers?

With this move and the mass layoff of about 500 staff in January, there may be reasons to worry that Twitch has been battling profitability. Whether this hike in subscription price will bring sustainable profitability to the video game streaming platform remains to be seen.

Meanwhile, streamers may benefit from the increased revenue share, leading to higher-quality content and a more professional streaming environment. However, some viewers might reduce subscriptions or switch platforms altogether, impacting overall viewership numbers.

A survey by Streamlabs shows that 61% of streamers reported financial concerns as a major obstacle to their success. This price increase could be a step towards alleviating those concerns and attracting more talent to the platform.

However, according to the Stream Hatchet Report, Twitch will need to balance streamer sustainability and viewer affordability to maintain a healthy ecosystem and not lose its subscribers to competitors like Kick and YouTube gaming, which have witnessed significant viewership growth in 2023.