Twitch CEO explains why platform suddenly hiked sub prices on mobile

Twitch CEO Dan Clancy has clarified the reason behind the increase in the cost of Tier 1 subs on mobile, stating that it is ultimately for the benefit of the streamers.

On August 21, Twitch announced that starting October 1, the cost of subscriptions on mobile in 40 countries will increase from $5.99 to $7.99 in the United States.

Despite Twitch already increasing subscription prices earlier in the summer, this move was not well-received by users who expressed their dissatisfaction.

After the announcement, several streamers showed interest in understanding the potential impact of this increase on their revenue.

Are the streamers seeing an increase to their revenue too? When the price went from $4.99 to $5.99, we kept our split with that extra dollar. Is that the same with the increase to $7.99, or are those $2 completely unseen by the streamer?

— GJake (@GernaderJake) August 21, 2024

“GrenaderJake inquired if the streamers were also experiencing a rise in their revenue. He wondered if their share remained the same when the price increased from $4.99 to $5.99, and if it was the same for the recent increase to $7.99. He questioned whether the streamers received the full $2 or if it went completely unseen by them.”

As a result, Twitch CEO Dan Clancy spoke up, attributing the increase in subscription costs to Apple and Google. He also asserted that the decision was made in order to support creators.

“According to Clancy, a subscription on either desktop or mobile will result in the same amount of income. However, not implementing this change would result in streamers earning less from mobile subscriptions due to the app store tax.”

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.

— Daniel Clancy (@djclancy999) August 22, 2024

With Apple and Google taking a 30% portion of payments on mobile, this adjustment seems to slightly offset the expense. However, it is important to mention that the price for subscriptions on mobile is increasing by 33.3%.

To avoid the sub increase on mobile, streamer FlashForce shared a method for users to bypass the price hike by subscribing through a web browser instead of using the Twitch app.