Twitch just announced it’s increasing the prices of Tier 1 subscriptions in Canada, Australia and U.K. The sub cost in Australia and Canada will have a $1 increase, making the prices A$8.99 and C$6.00, respectively. The U.K. is increasing from £3.99 to £4.99. Now, it’s possible Twitch’s prices in the U.S. will follow suit.

The cause of this price increase

According to Twitch, by increasing its subscription prices “help streamer revenue keep pace with rising costs and reflect local currency fluctuations.” 

The platform continued that these changes will drive more revenue to the creators, making streaming a sustainable source of income for them. Twitch assured that creators would get the same cut from subs and gift subs so creators are getting more for every subscription. The price increase will take effect with the next renewals. The subscriptions that were purchased through desktop and mobile apps will apply the changes first. 

“The increased revenue per sub that Twitch receives helps us maintain and build for the long-term future of streaming,” the blog post reads. 

Will the U.S. follow suit? 

During a Twitch stream with Chief Monetization Officer Mike Minton and Director of Community Marketing Mary Kish, they revealed that creators should expect the U.S. to increase its subscription price later this year. We still don’t know how much of an increase it may be. “Exactly what it will be is maybe still an open question,” Minton said. Since Canada and U.S. currencies are close, a similar price increase is extremely likely.

“We anticipate there will be additional price changes for other countries this year and will communicate them well before they take effect,” Twitch wrote. 

Reaction from the community

Twitch has been under fire for various policy changes recently, specifically pushing streamers to run more ads and changing their revenue splits. Recently, Twitch’s CEO Dan Clancy revealed that the platform isn’t profitable. So, it appears the price increases are an attempt to push Twitch’s revenue closer into the green. We will see how this move will end up for the platform in the months to come.