Twitch announces new prices for subs in Brazil.
Twitch, the leading live entertainment service, announces that localized pricing arrives in Brazil this Tuesday, 27. Viewers who enjoy following and supporting their favorite channel will now have a localized subscription fee, the famous subs. But what does it mean?
In addition to offering a unique entertainment option, Twitch is also concerned about providing fair value for communities around the world to support their favorite creators, making more people feel comfortable enjoying the benefits of being a subscriber. With this movement, the intention is to present prices in accordance with the economic reality of each region. That said, a sub in Brazil that cost R$22.90 reais now costs R$7.90, which is 65% lower.
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A sub is a long-term support for streamers and their content, as well as a vote of confidence for the entire community to continue creating. It’s a tool that unlocks new emotes and represents a community somewhere on Twitch. It’s playing an important role in building a community. This change will make it easier for creators around the world to expand their audience, while making it more accessible for viewers to show their support and access subscriber benefits such as ad-free viewing (when enabled by the creator), channel emotes custom, subscriber and creator badges, and sub-only chat mode.
Before making this decision, Twitch conducted several pricing tests and realized that with lower sub prices, the monthly and overall sub revenue of creators increased. In a recent test in Brazil, lower subs prices more than doubled creator revenue and total subscriber count. Subs were initially charged in dollars ($4.99).
Support for creators
The rollout, which began in Mexico and Turkey, continues through most regions where Twitch has a presence such as Asia, Latin America, the Middle East, Africa and Europe as of the third quarter of 2021. Understanding the need to adjust pricing, Twitch developed a 12-month program to avoid impact on breeders’ income. See details below as well as terms and eligibility information here.
- Twitch will cover 100% of Prime’s channel baseline and subs revenue (if necessary) for three months, including the month of the price change. Thereafter, it will slowly decrease incentive payments by 25% every three months for the next 9 months, totaling a 12-month incentive period for revenue adjustments.
- It all starts with “baselines”. Basically, Twitch looks at how much money a creator has made from paid, top-tier subscribers over the past three months, as well as how many hours they’ve streamed live, and calculates the averages. These average baseline statistics will be visible in the Breeder Dashboard for qualified breeders in countries where the price has changed.
- As long as this breeder streams at least 85% of their baseline hours live in a month and meets other eligibility criteria, Twitch pays this breeder a “Revenue Adjustment Incentive” to compensate for any lost revenue from subscribers. When breeders beat their average – that is, they earn more entry revenue – they receive this higher amount, not the incentive payment, but can qualify for future months if they need to.
- Once local subs prices begin rolling out, eligible creators will be able to use the Creator Dashboard to view their base monthly fees, actual subscription revenue, and future streaming requirements.
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