TWITCH CEO JUSTIFIED THE SUB PRICE INCREASE

Oleg Tytarenko 29 Aug 2024
Twitch CEO justified the sub price increase

We recently wrote about the fact that Twitch in the fall will raise subscription prices again. This news was not to the liking of many users, because this is already the second increase this year. But after this tweet, some streamers wondered how this increase would impact their revenue.

Now, Twitch CEO Dan Clancy explains why the platform suddenly raised sub prices on mobile, stating that it’s for the benefit of streamers…

However, Clancy placed the responsibility for the increase in subscription costs on Apple and Google. He claimed that the change was implemented to support creators.

Twitch CEO wrote on Twitter: “The simplest way to think of it is that you make the same amount from a subscription whether it is desktop or mobile. Without this change, then the streamers makes less money when a subscription occurs on mobile due to the app store tax”.

Even considering that Apple and Google take a 30% cut of payments on mobile. This change seems to offset that cost, but it’s important to note that mobile subscriptions are increasing by 33.3%.

The explanation is unlikely to help many. What should those who are not ready to pay more for a subscription on a mobile device do? It looks like there is some way out of this situation.

For example, we heard that users can essentially bypass the price increase by subscribing through a web browser instead of the Twitch app.

P.S. Let's see what this leads to. In any case, it's unfortunate because it would be healthier long term if most customers paid a smaller amount, and were happier with the platform…

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