Twitch "isn't profitable" admits CEO, in wake of recent layoffs - eviltoast
  • sugar_in_your_tea@sh.itjust.works
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    10 months ago

    I never wouldn’t bought Twitch in the first place. Video streaming is expensive with relatively low margins, especially if the majority of your users are ad supported. You’re not likely to convert users to higher margin products either, because what other products would they really be interested in? Games? That’s a really hard market to break into, even if you already have the delivery network in place because people like to stick with what they’ve been using.

    If I was a higher up, I would negotiate the Amazon Prime deal without direct ownership of the company, and sponsor streamers to rep your products. They already kind of do it for free by mentioning the free subs, it wouldn’t be much of a push to get them to mention Amazon more often (maybe so product reviews live for accessories or something). Running the service is a low margin deal and potentially volatile if large streamers move elsewhere (which they have), so it would be better for Amazon to more easily switch who it advertises with than go all in. It may cost them a little more, but there’s less risk and the money can be invested in other projects.

    Honestly, I would look at selling Twitch to Google or something, who could turn it into a side project of YouTube (and VODs and clips could directly transfer to a YouTube channel). Google isn’t in the shopping business, so I’m sure they could work something out.

    As a consumer though, I hope Twitch dies and something better takes over. Kick.com ain’t it though.