While the $US4.99 per month cost of a Tier 1 Twitch subscription works fine in the States, five bucks can be a much larger hit on one’s wallet in other countries. Starting this week with Mexico and Turkey, Twitch will begin adjusting subscription costs to better align with the local cost of living.
According to the blog post in which Twitch details the new program, the percentages of viewers supporting their favourite streamers with paid subscriptions are much lower outside of North America. Europe’s rate is 50 per cent lower. Latin America’s rate is nearly 80 per cent lower. Twitch attributes these lower rates to the difference between the U.S. dollar and other currencies, so it’s going to start adjusting sub rates to make the prices more appealing for specific countries.
Starting on May 20, the price of a subscription in Mexico will be 48 pesos, which is roughly $3. In Turkey a sub will cost 9.90 Turkish Lire, or $2. These lowered prices should make the idea of viewers in those countries supporting creators much more attractive.
The obvious downside to the program is that creators with large subscription bases in the affected countries will be taking an income hit from the lowered subscription costs. Twitch is hoping to smooth the transition by offering three months of calculated incentive payments to offset the potential loss. The idea is that eventually the lowered prices will mean more subscribers and the whole thing will even out. We’ll see how that goes.
Mexico and Turkey will be joined by most countries in Europe, Latin America, the Middle East, Africa, and Asia starting in the third quarter of 2021. A full list of affected countries can be found on the Twitch help page.