This is a most excellent place for technology news and articles.
After already reducing the creator cut and increasing ads... super curious what their books look like.
With moves like that, I'm guessing that they've never been even close to being in the black.
They are still losing money, but in the way that all tech companies spending every dollar that comes in so they can expand and build a monopoly loses money.
Everyone's commenting on their books but twitch's published numbers are all bullshit pretending they're paying market rate for AWS when they obviously get a deal being a subsidiary of Amazon. IIRC their last attempt to show they needed to up prices even had them using non-bulk AWS rates which they obviously wouldn't pay even if they werent owned by Amazon.
Iirc they lose money or something right? It's probably only able to run because Amazon has a shit ton of money.
They’ve never once made money. Twitch is a massive money pit where 99% of the creators on the platform are explicitly leeching while bringing nothing by way of income.
I’ve gotten so many messages over the last few months about price increases on everything from my internet to the toll lanes in my region. Absolutely everything is going up in price right now and t It’s just unsustainable.
I hope to one day have enough free time to want to watch someone play video games unedited for hours at a time, let alone be willing to pay money for the privilege.
Submarines are expensive everywhere, not just US. Rich people usually settle with Yachts.
"Extremely likely" -- says the only entity in control of the price. What are the odds? Who knows! It's extremely likely!
Just popping in here to toot my own horn:
I called this happening when whatever his name is, Twitch CEO man, gave the public speech/stream being very, very appreciative of Amazon for their support.
When you do /that/ it means your business model is a failure.
EDIT
https://sh.itjust.works/post/12652127
(no clue if this is somehow against some rules or some kind of lemmy instance feud, but heres the thread with my original post)
Anyway, Twitch is quite likely to ultimately basically kill itself with this move, and Amazon will either spin the employees off into existing Amazon sub sections, possibly but not likely do some nonsense like keep the twitch brand name but dramatically re orient the site, or, most likely, just slowly lay off more and more twitch employees and formally pull the plug, while retaining the brand rights and web url, all that kinda stuff.
I give it about 2 years before one of those scenarios comes to fruition. Could be faster if insanity twitch drama gets even more insane than normal.
Twitch still has critical mass. YT Streaming is still horrible, Kick is a giant advertisement for Stake and Mixer died years ago.
As long as they can find a way to milk more money out of users they’ll stay around.
Youre looking at this from the perspective of the consumer, not the business side.
I dont disagree at all that YT streaming is not up to par with Twitch.
But theres no immutable law that says 'there must be an easy to use internet video streaming site.'
I think that Amazon shifting toward Twitch needing to be more soley responsible for its own profitability will reduce its growth in user count, and eventually, as with so, so many other online websites with huge upkeep expenses but very little income stream... this will inevitably lead to death of the service/site.
I could be wrong about the amount the growth slows down by, but yeah I certainly wouldnt expect Twitch to be around, at least not without huge amounts of monetization compared to what there is now, in 5 years.
