Why is Twitch Charging More for Mobile Subs?

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This weekend at Twitch Con, Twitch unveiled several new features for its ever-growing platform. These updates include new ad experience, channel points, and mobile subscriptions.

The Twitch app has always been fairly minimal, missing a lot of the features on its desktop counterpart. One of the biggest missing features was the complexity of subbing to your favorite streamer in-app. Now with this new upcoming update, users can buy sub tokens that can be redeemed for a subscription to their favorite channel. One thing that people noted almost immediately, was the $1 extra charge on all subscriptions. The comments very quickly and aggressively pointed this out. So is Twitch trying to scamaz its mobile community? No, turns out it’s just a part of the Apple Tax. From Apple’s site where they explain the system they say:

“Developers earn 70% of sales from in-app purchases and Apple collects a 30% commission.”

App Store – Principles and Practices

This means is that Twitch is taking a hit on there current model. If you purchase a sub token in app to an affiliate the breakdown is:

Total: $5.99
Apple (30%): -$1.79
Channel Cut: -$2.50
Twitch Cut = $1.74

So they aren’t really trying to scam us out of that extra dollar, it’s mostly to just cover the extra change that Apple will be taking from them. This is only for affiliates as well, the profit margin will be much worse for them when it comes to larger partners with better cuts.

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