Twitch warns US sub price increases “extremely likely” after international updates
dexerto.com
Twitch warns US sub price increases “extremely likely” after international updates::undefined
You are viewing a single comment
Twitch warns US sub price increases “extremely likely” after international updates::undefined
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.
Also Twitch has historically been profitable in Europe (or maybe it's just Western Europe? Can't remember). Something that Twitch generally keeps quiet but the French streamers I follow never forget to point out when Twitch publicly whines about their supposed nonprofitability.
Which means that NA can't be that far behind given that the US has higher GDP/capita (buy I guess lower engagement). So when you are combining that information with their bulk discounts, it's for sure profitable there.
Now maybe Twitch truly isn't profitable in poorer regions like LatAm where infrastructure costs don't scale down as fast as sub prices and ad revenue. But regarding Europe and NA, they are openly bullshitting.
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.