Amazon's massive investment in the streaming platform Twitch over the last 10 years has not paid off, and clearly they're becoming impatient. After the costs for a subscription were already increased this summer, Twitch have just announced further measures to make the streaming platform more profitable.
Twitch, the popular, Amazon-owned streaming platform, has announced yet another price hike for its Tier 1 subscriptions, but this time, the increase will only affect mobile users. Starting October 1, 2024, the cost of a Tier 1 subscription on the iOS and Android mobile apps will rise to $7.99 in over 40 countries. This marks a significant increase from the previous price of $5.99, which was already raised from $4.99 earlier this summer.
Starting October 1, we're increasing new Tier 1 sub and gift sub prices on the mobile app in over 40 countries. You can bring your questions to Patch Notes today, August 21 at 12pm PT. We are notifying streamers and subscribers in these countries via email.
— Twitch Support (@TwitchSupport) August 21, 2024
Why Will The Change Only Effect Mobile?
The primary reason for this price hike is to offset the fees imposed by Apple and Google for in-app purchases. Both tech giants take a 30% cut of payments made through their platforms, which has led Twitch to adjust its pricing strategy.
This increase is specific to mobile users, meaning that those who subscribe via desktop browsers will not see any changes in their subscription costs. Additionally, Tier 2 and Tier 3 subscriptions remain unaffected by this change.
Twitch Community In Shambles
The announcement has been met with widespread disapproval from the Twitch community. Many users have expressed their frustration on social media, criticizing the platform for continuously raising prices. Some have pointed out that the frequent price hikes hurt small streamers, as regular subscribers may cancel their subscriptions due to the increased costs.
As one user commented, “How do you guys keep managing to stack up L’s after L’s? It’s shocking to me,” while another added, “Please stop increasing prices on subscriptions. It hurts small streamers! So many regular subscribers had to cancel renewing subs when you bumped it up to $5.99 and mobile pricing is already ridiculously high”.
Please stop increasing prices on subscriptions. It hurts small streamers! So many regular subscribers had to cancel renewing subs when you bumped it up to $5.99 and mobile pricing is already ridiculously high! Now you're increasing mobile pricing even more?
— KibblesAwoo (@KibblesAwoo) August 21, 2024
This latest price increase comes amid reports of financial struggles at Twitch. Despite its popularity and dedicated viewership, Twitch has struggled to turn a profit since its acquisition by Amazon in 2014. Let's see if this helps. We're unconvinced.