- Twitch struggles to profit under Amazon.
- Livestreaming market evolves beyond gaming niche.
- Platform faces stiff competition from diversified social media giants.
Game over for growth?
Ten years after Amazon’s acquisition, Twitch finds itself in a precarious position. The livestreaming platform, once seen as the next YouTube or Instagram, is struggling to turn a profit despite $2 billion in annual revenue.
Recent staff cuts and concerns about its place within Amazon’s portfolio have raised questions about Twitch’s future.
Industry insiders suggest Twitch’s challenges may be symptomatic of broader trends in livestreaming.
The platform’s core audience of gaming enthusiasts remains niche, and creators are increasingly diversifying their presence across multiple platforms like TikTok and YouTube.
These competitors often offer more lucrative monetization options, further eroding Twitch’s market share.
Missed opportunities
Despite Twitch’s early dominance in livestreaming, critics argue the platform failed to capitalize on its pandemic-driven surge.
An industry expert notes, “They have good streaming tech. What they don’t have is a place in the culture beyond being YouTube’s little brother.”
As Amazon CEO Andy Jassy looks to streamline operations, Twitch’s future remains uncertain in an increasingly competitive digital landscape.
