Amazon-owned Twitch is about to celebrate its first anniversary since its purchase. But the company still can’t support itself financially. Experts are worried that Twitch could become a “zombie project” that lives only on the financial giant’s support.
Even after the restructuring carried out at the beginning of the year, which included mass layoffs, it was not possible to achieve the expected economic results. In addition, the Korean division of the portal, which was very popular in the gaming community, was closed.
In the US market, statistics confirm that the popularity of streaming has fallen sharply in recent years, which has had a negative impact on advertising revenue. Users have recently been spending less money on subscriptions and donations, which has reduced the service’s margin percentage.
Despite this, an Amazon representative assured that the giant believes in Twitch’s capabilities and does not intend to close it.
