Twitch users are going to have to pay more for subscriptions — this time for mobile. October 1st will see an increase in the monthly pricing of a Tier 1 subscription through the Twitch iOS and Android applications from $5.99 to $7.99.
The U.S. is one of the more than 40 countries affected by this change. The same price increase will apply to gift subscriptions on mobile devices.
Why the increase?
Twitch stated that the price increase is required to cover the costs associated with in-app purchases that Apple and Google impose. The company said, “We’re increasing new Tier 1 sub and gift sub prices on the mobile app in over 40 countries,” according to a post on X (previously Twitter). Despite the explanation, several users have voiced their dissatisfaction online.
There have been previous pricing increases for Twitch subscriptions. The price of a web-based Tier 1 subscription was increased from $4.99 to $5.99 in July. Subscribing via the app will once again cost more than using the desktop website.
User reactions
The reaction from Twitch users has been overwhelmingly negative. Many took to social media to voice their displeasure, with one user commenting, “How do you guys keep managing to stack up L’s after L’s? It’s shocking to me.”
Another user expressed concern for small streamers, saying, “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.”
Impact on Twitch’s future
The decision by Twitch to increase prices comes as the platform continues to face financial difficulties. Twitch hasn’t turned a profit since it was acquired by Amazon in 2014. According to a recent Wall Street Journal article, there may be more widespread layoffs. We’ll have to see if this move will ultimately help Twitch’s bottom line. On the one hand, they will be making more from Tier 1 subscriptions on mobile. However, as many streamers have pointed out, as the platform increases prices, they’re experiencing a drop in overall subscribers.
So, while technically, subscriptions are more expensive and should lead to higher profits, that’s only true if the number of subscribers stays relatively stable. If Twitch experiences a big drop in subs after the price increase, it may result in a net loss. It will all depend on how many current subscribers are willing to pay the extra $2.
