Amazon is disappointed in Twitch, which it bought 10 years ago for $1 billion

Twitch, the live-streaming platform acquired by Amazon 10 years ago for $1 billion, has fallen on hard times. Despite two billion annual income, the service operates at a loss. Internal problems, increased competition and doubts about the prospects of the live broadcast format itself call into question the future of Twitch, writes Business Insider.

Image Source: Caspar Camille Rubin/Unsplash

Amazon is disappointed with its investment in streaming platform Twitch, which it acquired in 2014. The initial hope was that Twitch would become “the next YouTube or Instagram✴” and a fast-growing service that would skyrocket in popularity and profitability after joining a major tech platform. However, these hopes were not realized. Twitch is losing money and its user base growth appears to have stalled.

Trying to understand the issue, Business Insider, citing the WSJ, notes that despite the fact that Amazon laid off a third of Twitch employees this year, the service’s problems may be associated not only with internal factors, but also with the characteristics of the streaming market as a whole, since It remains unclear how large an audience is willing to regularly watch video game livestreams and other content on Twitch.

At the same time, the streaming industry itself continues to develop. Content creators are now using various platforms, including TikTok and YouTube, which offer better monetization terms. For example, YouTube has made it easier to cut live broadcasts into short clips that are easier to monetize.

Despite Twitch’s technological advantage in streaming, the platform has failed to take full advantage of its rise in popularity. According to experts, Twitch is still perceived as “YouTube’s little brother” and has failed to take a significant place in modern digital culture.

admin

Share
Published by
admin

Recent Posts

Ubisoft spoke about the capabilities and innovations of stealth mechanics in Assassin’s Creed Shadows – new gameplay

Image source: Ubisoft Let us remind you that the events of Assassin’s Creed Shadows will…

47 minutes ago

Assembly of the second NASA SLS rocket has started – in a year it will send people on a flight around the Moon

NASA announced that assembly of the second lunar rocket, SLS (Space Launch System), has begun…

47 minutes ago

The creators of Black Myth: Wukong will surprise players before the end of the year – teaser from the head of Game Science

Co-founder and CEO of the Chinese studio Game Science, Feng Ji, hinted that some surprises…

3 hours ago

Nvidia stock is no longer the best performer – MicroStrategy soars 500% in a year thanks to Bitcoin

Last Wednesday, trading volume in MicroStrategy shares exceeded that of Nvidia and Tesla. The company,…

3 hours ago

Tired of waiting: sales of S.T.A.L.K.E.R. 2: Heart of Chornobyl exceeded one million copies within two days of release

The post-apocalyptic open-world shooter S.T.A.L.K.E.R. 2: Heart of Chornobyl from the developers from the GSC…

4 hours ago

TSMC to start producing 1.6-nm chips in two years

TSMC's plans for the next couple of years remain largely unchanged - by the end…

4 hours ago