Twitch subscriptions will cost by country's standard of living: precedent for Netflix or Disney?

Suscripciones a Twitch

Twitch decides to tackle a topic that is taboo for many Internet companies: the uniformity of quotas. Will it become a trend, or is it an isolated case?

Twitch is a streaming platform where users upload their live videos. Mainly gameplay of video games, but also fashion, curiosities, gossip, etc.

It includes the option to subscribe to a channel, for 4.99 euros per month, to obtain some privileges in the form of chat only for subscribers, exclusive direct only for them, personalized emoticons, emblems, sweepstakes, etc. It is an individual subscription for each streamer. That is, if you want to subscribe to two users, you have to pay for two subscriptions...

It's easy to see where the problem is. Maybe 4.99 euros (dollars) a month isn't much money for an American who ranges from $3,000, $5,000 a month. But it is an important amount for a Spaniard who earns 900 euros... or for an African or an Asian who earns the equivalent of 100 euros per month.

It's a problem that occurs in virtually every subscription, from Spotify to Netflix, Disney+, etc.

Most indeed have different prices for developing countries, but in general, they tend to match certain areas such as the United States, Europe, Australia, and Japan, when a Spaniard, a Portuguese, or an Italian earn half or a third than a German, a Swede, or an American.

It is also true that in these countries commodity prices are higher (food, transport, accommodation), but there is still an imbalance, and there is cheaper to sign up for subscriptions or buy video games, which have a unified price of 60 or 70 euros for the whole European Union.

This is recognized by Twitch, which has given important data: the number of subscribers is 50% lower in Europe than in the United States. And 80% lower in Latin America.

Twitch has announced"because many fans have asked for it" (as if they hadn't noticed before), that it will lower the subscription price to fit each country's standard of living.

It's an important announcement because it talks about adjusting prices from country to country, and not by continents or zones. The quota has already dropped in Turkey and Mexico, and in the coming months, it will be with the rest of the countries, including Spain.

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This will affect streamers, who will earn less with subscribers from countries with the lowest odds. But Twitch expects it to be compensated, with more subscriptions. It will still implement a Guarantee Plan where it will financially compensate streamers for the first 12 months so that their income does not fall.

Twitch has put a taboo theme on the table for most Internet companies: adjusting prices to each country's economy. It doesn't seem fair that a Netflix, Disney+, online game on PS5 or Xbox Series X, or Steam games are worth the same in Spain and Portugal, as in Germany, Sweden, or the Netherlands.

Will you ever dare adjust it? It's unlikely as long as they succeed, but Twitch has touched on a sensitive topic that more companies will need to address, when the subscription bubble bursts, soon.

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