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The majority of Twitch's costs are going to be revenue to AWS; I wonder if they are still unprofitable if you include the AWS earnings on those services. Or in
by tempestn 3y ago
The majority of Twitch's costs are going to be revenue to AWS; I wonder if they are still unprofitable if you include the AWS earnings on those services. Or in other words, if AWS hosts Twitch at cost, is it profitable then? If so, or if it's even close, the business would still have value to them. Maybe this layoff is intended to get there.
- spenczar5 3y agoTwitch’s video infra is not on AWS. Only the non-video stuff is. Video and networking costs a lot.
- tempestn 3y agoOh, that's surprising. It's in-house then? I can't imagine they'd be paying a non-AWS provider.
- spenczar5 3y agoYes, it was a complicated part of the acquisition. Twitch owns a lot of hardware and has it in colos all over the place. There are some control plane components in AWS but those are relatively small.