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Twitch takes a 30-50% cut of revenue from subs, which is an incredible money printing machine. Ads aren't there to make money for twitch. They're there to annoy
by algorias 6y ago
Twitch takes a 30-50% cut of revenue from subs, which is an incredible money printing machine. Ads aren't there to make money for twitch. They're there to annoy users into subscribing.
- busterarm 6y agoAs much as you're right here, you missed the point. They're still struggling to make a profit. Turns out their business probably needs both to work.
- Judgmentality 6y agoI don't think this is true at all. I think Amazon has realized they can't make twitch profitable just from subs, and are heavily pushing ads in order to try to fundamentally change how they make money with it. I also think Amazon, the entire company, is making a big push towards ads. Amazon is still terrible with ads, but I think this is one of the overarching themes of how the company is shifting focus in the near future. https://www.ben-evans.com/benedictevans/2021/3/14/do-amazon-ads-bring-in-more-cash-than-aws https://www.ben-evans.com/benedictevans/2021/3/14/do-amazon-...
- busterarm 6y agoWhat you're saying is demonstrably true from recent attempts by Amazon to overhaul Twitch's ads platform.