On October 1, Twitch will enact a significant change to its subscription pricing for mobile users, escalating the cost of a Tier 1 subscription and gift subscription from $6 to $8 per month. This upcoming increase follows a similar adjustment made in July for desktop subscriptions in the United States, which climbed from $5 to $6—the first such rise for US viewers. The broader trend this year has seen price hikes implemented in markets including the UK, Canada, Australia, and Turkey. Much of the current pricing structure for mobile subscriptions can likely be traced back to the high commission fees demanded by Apple and Google for in-app purchases. These tech behemoths have found themselves facing antitrust lawsuits, leading to shifts in their fee policies, particularly in Europe due to the Digital Markets Act. What emerges from these changes is Twitch’s response to the external financial challenges posed by platform fee structures while aiming to align its pricing globally.
Industry Dynamics and Financial Pressures
The larger increase in mobile subscription prices compared to desktop subscriptions highlights the distinct fees associated with in-app purchases, which are usually around 30% levied by Apple and Google. These exorbitant expenses have not only stirred regulatory scrutiny but also prompted companies like Twitch to adapt their pricing strategies. Apple and Google have made some modifications to their fee structures, mainly in response to legal pressures and new regulations in Europe. The Digital Markets Act, aimed at curbing monopolistic practices, is a notable example. For content creators and users alike, Twitch’s new pricing aligns with a larger trend of increasing costs driven by these tech industry dynamics. As Twitch navigates these complexities, viewers must grapple with reflecting market realities, rendering the international alignment of pricing a necessary, albeit inconvenient, move for the platform’s sustainability.
