Twitch will also be increasing its prices for Tier 1 subscriptions across 35 countries, including the US, joining other online platforms hiking up subscription fees this month.
Amazon-backed Twitch announced the price changes on Tuesday with US users now needing to pay $5.99 per month, an increase from its usual $4.99 price.
The $1 price increase is set to take effect on July 11, marking the first time Twitch increased its subscription fees since it launched the program in 2011.
The platform claimed the price hike is part of the live-streaming platform's "efforts to help creators build and grow their communities worldwide."
Twitch even reasoned streamers enrolled in its Twitch Partners "will make more money" from the higher subscription prices.
Hey, Streamers will continue earning according to their revenue share (50-70%)💜
— Twitch Support (@TwitchSupport) June 4, 2024
Streamers will make more money per subscription with the price increase.
Twitch, however, did not mention that the new pricing may also reduce the number of subscribers due to a 20% increase from its old fees.
More Services Roll Out Price Hikes in 2024
Twitch's price hike follows after other streaming services also announced increased subscription fees this year.
Spotify earlier confirmed another subscription price hike this year, bringing the price of its Individual plan from $10.99 to $11.99, the second time within the past 12 months.
Video streaming sites like Max, Amazon Prime Video, and Peacock have already been reported to have increased their prices earlier this year with Netflix expected to also up its price tags later too.
So far, YouTube Premium is the only popular subscription-based streaming platform that has not increased its prices for this year yet, although Google already hiked its fees last July.
Related Article : Spotify Confirms Another Subscription Price Hike This Year
Why are Online Services Increasing Their Subscription Fees?
New outlets and media experts have long expected price hikes following the mass layoffs many companies conducted earlier this year.
Earlier reports have indicated slower revenue growth across the tech industry with several companies resorting to cost-cutting measures to maximize profits.
Streaming services like Spotify even introduced a new paid subscription tier in an attempt to attract new customers outside of its regular music listeners, while video-streaming platforms rolled out ad-supported tiers.
The next logical step would often be price hikes, not that the users are entirely fond of it, especially with inflation only continuing to hit people's finances.
