Twitch "isn't profitable" admits CEO, in wake of recent layoffs - eviltoast
    • Xin_shill@lemm.ee
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      1 year ago

      They pay themselves for infrastructure costs effectively, so it would be the wholesale price. Would love to see their actual accounting book, public data says they made 2.8 billion, would love to see where it went.

      • 4am@lemm.ee
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        1 year ago

        I’ve heard (yes anecdotal) that on the books, Twitch pays AWS full retail for server time.

        Makes me wonder if that’s done on purpose? Amazon just wants to kill Twitch and rent out IVS (their internal system) to other streaming platforms (like they do for Kick). THAT is outside money coming in.

      • Endorkend@kbin.social
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        1 year ago

        Imho you’re wrong there.

        Amazon has every incentive to write down Twitches infrastructure cost as far higher than it needs to be, to make Twitch look unprofitable.

        Both to audience and shareholders. It’ll allow them to force more advertising and push up sub prices while making the main corporation revenue look better.

        This while the long term plan looks to be more about getting an excuse to shut down the public facing side of Twitch and get rid of having to deal with the streamers and viewers as direct clients and renting out streaming infrastructure to other streaming sites instead.

        They want to condense their streaming services to simply be simple products they can sell or rent out to other sites rather than having to deal with a load of consumers and legal liabilities that come with them.

        • arin@lemmy.world
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          1 year ago

          Well, until they can beat YouTube live and their game streaming there they have to compete still

    • MysticKetchup@lemmy.world
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      1 year ago

      Data is surprisingly cheap. It’s more than likely just reinvesting any profits into growth to boost stock price/investment. A lot of companies are hitting the point where growth is leveling off, so they’ve switched to cutting costs