• Business Updates

  Twitch struggles to make profit.

  Posted by Johnwesley on January 11, 2024 at 8:30 pm

  Alright, here’s the latest on Twitch’s situation:

  1. Money Matters: Dan Clancy, Twitch’s CEO, mentioned that they’re not really making money from certain areas, like Kick, which uses Amazon’s tech. It’s like they’ve built this cool tech, but it’s not filling Twitch’s own pockets.

  2. Staff Cuts: Twitch had to cut a bunch of their team, about 500 associates. They grew too quick, expecting more growth than what really happened. Now, they’re resizing to fit their actual business size and needs.

  3. Profit Problems: Twitch is the spot for live streaming, but they’re struggling to make good money. The cost of running it and paying streamers, an estimated $1 billion last year is taking its toll.

  4. Costly Operations: Running Twitch isn’t cheap. Each top streamer costs them about $1,000 monthly, mainly due to Amazon’s video streaming costs.

  5. Worldwide Woes: They’ve hit roadblocks outside the US too. For example, they had to close services in South Korea because it was just too expensive to keep going.

  Though Twitch is a leader in its field, its struggle to profit highlights the need for a diverse and resilient revenue model. Also be ready for tough decisions no matter how early or far you are with your company.

  Johnwesley replied 2 years ago 1 Member · 0 Replies
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