it seems Twitch is bleeding top game streamers from its platform. do you think this is the beginning of the end for this platform? why Twitch is not doing anything to keep them? How it may affect Amazon in general?
Not sure about their business strategy but internal eng-wise Twitch is very dysfunctional
There’s only been like 5 notable streamers to go over right?
Given that shroud lost like 2/3 viewers when going to mixer, it's not worth without 8 mil dollar contracts. And it's not sustainable for these platforms
8 mill guaranteed is def worth losing viewers for. Yeah it's likely he'll never regain that viewership, but streamer income has to be some of the most volatile and non guaranteed income there is.
It's worth it for shroud in the short term. But it permanently and irreparably damaged his brand. In the future he will now be worth less because of it. More importantly, Facebook, YouTube, and Microsoft will view these contracts with more scrutiny.
Msft and FB are paying big money, but Twitch remains strong as the best platform for streamers
It seems only Amazonians keep writing here that Twitch is best. :)
Nah, it’s data.
If Twitch made me floss in times square without a bump in TC I would have moved to Mixer too
Insiders will be biased, but will also have better information. Don't confuse the two. Obviously, we didn't value that content enough to beat the competing offer. Based on Ninjas viewership on Mixer, we made the right choice for us, Mixer whiffed, and Ninja won. Repeat for other creators. It's a struggle. We're the top streaming platform by far, but we won't remain that way if we lose a critical mass of streamers. Alternatively, our competitors will implode if they keep throwing money at streamers who don't bring over the viewership. It's anybody's guess as to which happens first. But if Mixer poaches, say, 20 streamers at $5MM a year, they're on the hook for $100MM without even considering salaries, tech cost, overhead... Stat #6 here ( https://influencermarketinghub.com/mixer-stats/ ) suggests they have 12MM unique viewers. Each viewer needs a yearly LTV of $10 just to cover content costs. Mixer has 120 employees, so that's another $60MM in butt-in-seat cost. Then tech cost. I'd guess annual LTV needs to be $25 all told for Mixer to break even at current viewership. That is a LOT to expect from an ad service. The annual LTV for an actual paid service like Netflix is $140. Calculate the ad-supported LTV. YT average cpm is $7.60, split evenly between Creator and company, and that's higher because of their viewership. Let's cut in half, say $1.90 cpm to Mixer, so that means each view is worth 0.19 cents. Say they watch 10 full ads a week (v generous), 50 weeks a year, so that's a rough viewer LTV of 95 cents a year, from ads. Subs are probably negligible income, but feel free to say it doubles that LTV on average. Tl;Dr: Mixer needs to 12x just to break even on an estimate of its current costs. Mixer is gambling on losing a ton of money for growth. As a more mature company thinking about profit, Twitch shouldn't be paying the same amount for content. It's negative ROI. I'm optimistic about Twitch, but we have to keep our community edge. FB and YT can't replicate it (which is why YT Gaming shut down its app, and why YT is now third while Mixer is second).
As an insider do you think twitch as an LOB of amazon makes a profit at this time?
@Twitch awesome explanation. Thanks! I got on Mixer, but how about FB and YT? They have tons of money and top talent. They can replicate anything they want (just like Snapchat) and poach anyone. It seems YT and FB poached each a well known streamers.
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Because Mixer is throwing cash at them to be exclusive.
It is not just MS, YouTube, FB are also poaching top streamers. And the thing is all these guys have more cash than Amazon. It is interesting that Amazon got this type of business early on, while the rest of crowd saw the potential later.
Twitch got it early on, then Amazon saw the potential and bought twitch.