Amazon Still Isn’t Making Money From Twitch, Report Claims

Twitch is arguably the number-one streaming platform in the world, boasting millions of users and a reported annual revenue of $2 billion – but it’s still not profitable for Amazon. In 2014, Amazon acquired the streaming platform for around $1 billion, but more than ten years after that sweeping purchase, it has been revealed that the tech titan still isn’t making money from the streaming site.

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Always Losing

This news came from a WSJ report that discussed Amazon’s failure to make money through Twitch after more than ten years of owning and supporting the platform. The cost of running the site through Amazon’s infrastructure means that the firm has failed to ever profit from the streaming platform, despite it pulling in a reported $2 billion a year.

In the report published in WSJ, it was claimed that fewer users are signing up to Twitch and the ‘biggest spenders’ are neglecting to pump the site with money. In recent months, Twitch has suffered from widespread layoffs as Amazon has attempted to pivot to adjust to new financial woes that have struck much of the wider industry, and per Dexerto, insiders are concerned that another wave is on the horizon.

It was also claimed by those close to Twitch that several projects have been cancelled or postponed internally because there isn’t any hunger or budget to float them.

With rising competition in the form of YouTube and Kick and constant complaints from the community about changes to Twitch, the top-tier streaming site could be about to pass a point of no return.

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