Reflections and Thoughts of Brian
Posted on: January 4, 2025, 11:16 am
Twitch is built around community-driven content and support, with subscriptions being one of the primary ways for fans to financially support their favorite streamers. I see an emerging trend on the platform with some streamers manipulating the subscription system, leveraging regional pricing and psychological tactics to boost their earnings.
How the Scam Works:
Twitch introduced region-based subscription pricing in 2021 to make supporting creators more accessible worldwide. Subscription prices are adjusted based on local purchasing power, allowing fans from lower-income countries to subscribe for a fraction of the cost paid in wealthier regions. While this policy has undoubtedly helped equalize access to content, it has also opened the door for exploitation. Here’s how the scam unfolds:
Leveraging Cheap Sub Prices - Streamers organize a "team" (often friends, moderators, or alternate accounts) to start "sub trains" — rapid streaks of subscriptions during live streams. By using accounts tied to regions with significantly cheaper subscription prices (as low as $1.49 in some countries compared to $5.99 in the U.S.), these team members initiate the train with minimal investment.
Exploiting FOMO - Once the sub train gains momentum, viewers are urged to join in, often with high-energy prompts like flashy alerts, timers, or competitive goals to hit the "next milestone." These tactics prey on viewers' fear of missing out on being part of the action or contributing to the streamer’s apparent success. Many viewers, unaware of the manipulation, purchase subscriptions or gift them to others at their region's full price.
Net Gain for Streamers - The math is simple: streamers receive approximately 50% to 70% of the subscription revenue (depending on their Twitch agreement). By leveraging cheaper regional prices to start the train, streamers minimize their costs. When viewers from higher-priced regions jump on board, the streamer reaps the benefits of the higher cut, creating a significant profit margin.
A Hypothetical Breakdown - Initial Investment (Cheap Sub Prices): A team member subscribes or gifts 10 subscriptions from a country where the price is $1.49 per sub. The total cost is $14.90. The streamer earns roughly $7.45 (50% revenue split).
Viewer Participation (Standard Sub Prices): Motivated by the sub train, 20 U.S.-based viewers gift subscriptions at $5.99 each, totaling $119.80. The streamer earns $59.90.
Net Profit: For an initial investment of $14.90, the streamer generates $59.90, resulting in a net gain of $45.00.
While this tactic might seem like a clever hustle to some, it raises serious ethical concerns:
Deceptive Practices - Using low-cost regions to artificially inflate subscription activity misleads genuine supporters, undermining the authenticity of community engagement.
Exploiting Viewers’ Trust - Loyal viewers may unknowingly spend money under false pretenses, believing they are part of an organic sub train rather than a staged event.
Impact on Small Streamers - This practice creates an uneven playing field, making it harder for honest small streamers to grow and compete.
Twitch Policy Violations - Twitch has clear policies against deceptive practices and harm to the platform. While this tactic may skirt the line, it could attract scrutiny from the platform, leading to penalties or bans.
The Twitch subscription scam highlights the darker side of creativity in monetization. While the platform’s regional pricing model was designed to foster inclusivity, it is now being exploited by a good amount of streamers to manipulate their viewers. Addressing this issue requires effort from Twitch, its creators, and the community to uphold the integrity of the platform. For viewers, the best advice remains: support your favorite streamers, but stay informed and vigilant. Don’t let FOMO cloud your judgment when spending your hard-earned money.