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Twitch announces that it will lower subscription prices

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Twitch has always charged US $ 5 per month for a standard subscription, regardless of the country or region where the subscriber is located. Now, however, the streaming site has understood that this universal pricing practice may not be fair for most countries, therefore it has decided to reduce subscription prices.

The purpose is to apply a fairer price that better reflects the cost of living in each country in particular.

The price drop will start on May 20 in Mexico (48 pesos a month, that is, about 2.40 US dollars) and in Turkey (9.90 TRY, about 1.20 US dollars). In the third quarter of this year, several countries in Africa, Asia, Europe, Latin America and the Middle East will be contemplated with cuts in subscription fees. Therefore, a fee is paid depending on the country where you are located.

Twitch announces that it will lower subscription prices

The company, owned by Amazon, said this new policy should make it easier for viewers to support their favorite streamers / creators. The percentage of active users with subscriptions in Asia and Europe is about half that of Latin America. In theory, this helps streamers in most regions to increase the number of subscribers.

On the other hand, Twitch is aware that this policy change could lead to a decrease in income for some channels. For this reason, the platform promises to cover all basic subscription revenue for a channel for three consecutive months, and to gradually reduce these payments over nine months, in order to facilitate adaptation to the new price structure. Streamers that exceed their averages for a considerable period will obtain a higher value. What’s more, they will be able to support Twitch in case of losses.

This compensation will not come cheap for Twitch coffers. 50% of the subscription fee will be required to cover this new pricing policy. Therefore, it is likely that the platform will suffer revenue losses in some countries, at least for the duration of the transition.

Source: Engadget

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