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Twitch "isn't profitable" admits CEO, in wake of recent layoffs
(www.eurogamer.net)
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this post was submitted on 12 Jan 2024
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Because they kinda do it for every service of them, the point is to spread to all the markets with subsidies until kill the competition, and then keep a marginal profit to avoid competition while still makes a marginal profit (what in scale is a big profit anyway). This is usually what these megacorps do.
Do they? I wouldn't be surprised if AWS even charges Amazon.com full retail for hosting. The point is the company has a lot of different business units that report up to the CEO, and business units generally act like mini companies.
The accounting of charging full retail to other business units is a lot cleaner than giving preferred rates and making it harder to understand the finances of what is going on with the different business units.
A CEO may be willing to operate a business unit at a loss for strategic reasons, but they have to understand that said business unit is costing the company money.