Twitch has long charged $ 4.99 for a top tier subordinate and has translated roughly that price into other currencies. This means that for years, other countries have paid much more for a month’s subscription or the price has been abnormally high compared to the cost of local life. Twitch finally deals with the price disparity and it does introduce local subscription costs to try to level things up.
Mexico and Turkey are the first to receive prices that reflect the cost of local life. A top tier subordinate will cost 48 pesos (about $ 2.42) and 9.90 Turkish lira (about $ 1.19). Most countries in Asia, Latin America, the Middle East, Africa and Europe will migrate to local prices later this year. Twitch has provided a complete list of countries that will need to receive new prices. It is said that the "vast majority of countries outside the US" will see prices drop.
Twitch says the reason for the price of local subscriptions is a huge discrepancy between active U.S. subscribers and those from other parts of the world, as the $ 4.99 translated price makes it "difficult for many viewers' pour money into subscriptions. "This is not just anecdotal; it is clearly reflected in the figures," Twitch wrote in a blog describing the changes. "The percentage of active users in Europe or Asia who support creators with a subscription is about 50% lower than in North America. In Latin America, it's almost 80% lower."
We’re implementing one of the most important changes in Twitch’s history, which will help creators create larger, global communities: the price of local supplies. In most countries, the price of a subcontract will be reduced, starting with Mexico and Turkey. More information: https://t.co/LzKQxynb5B pic.twitter.com/zNBeRC4WyOMay 17, 2021
While this is good news for the average viewer, Twitch has predicted a possible setback for creators who could see their revenue stream during the changes. "Twitch will cover 100% of the basic revenue of the base channel and Prime (if necessary) for three calendar months, including the month of the price change. After that, we will slowly reduce incentive payments a 25% every three months for the next nine months, adding up to a twelve-month period to provide income adjustment incentives. "
Basically, Twitch calculates the average monthly income of each creator. If revenue falls below these changes, Twitch will cover the entire loss for the first three months before reducing payments throughout the year.
It’s great to see Twitch finally offering local pricing, but it’s taken a long time to do so. Local pricing is something Steam has been offering for years: take a look at SteamDB page for PUBG and you’ll see how costs vary by country. It's better late than never, huh?
Twitch has been making some changes to its platform recently. A little hell of the self-inflicted DMCA sparked more support for creators to deal with copyright issues. Some fake codes also revealed plans for a future "brand security score", although there is no public announcement yet.