Not mentioned in the article but definitely the elephant in the room: The rise of TikTok streaming [1]
TikTok doesn't focus on gamers, but attention is finite. TikTok surpassed Twitch a while ago in revenue and it's accelerated since then. TikTok + Youtube (very profitable) makes Twitch at best a flat third place. Not a great business to be in when ZIRP ends.
> Nine years after Amazon’s acquisition of the company, the business remains unprofitable, according to the people, who asked not to be identified discussing private information.
This ... is wild, I had no idea Twitch wasn't profitable. If you're pushing that much live video you really need to find a business model that works, especially when Youtube arguably does it better. Kind of surprised it took this long to start to wind it down.
TikTok doesn't focus on gamers, but attention is finite. TikTok surpassed Twitch a while ago in revenue and it's accelerated since then. TikTok + Youtube (very profitable) makes Twitch at best a flat third place. Not a great business to be in when ZIRP ends.
> Nine years after Amazon’s acquisition of the company, the business remains unprofitable, according to the people, who asked not to be identified discussing private information.
This ... is wild, I had no idea Twitch wasn't profitable. If you're pushing that much live video you really need to find a business model that works, especially when Youtube arguably does it better. Kind of surprised it took this long to start to wind it down.
[1] https://appfigures.com/resources/insights/20210924/amp?f=4