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Twitch sucks!
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this post was submitted on 03 Nov 2024
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It is true that twitch loses Amazon money, this has been known for years. Yet they are still supported by Amazon. There must be something beyond money that the trillion dollar corporation sees in having absolute control over a major media platform. You focus and argue about checkers while Amazon ignores your cries and continues playing chess.
The online retail store Amazon actually loses money too, the main generator of profit for Amazon is actually AWS. Every other branch of the business is about market control.
Seems I’m being misinterpreted badly. I’m saying that Amazon has no monetary interest in Twitch. So yes they’re dependent on an Amazon vision to be able to have that internal access to AWS.
The problem with that is if somehow that vision doesn’t pan out or Twitch steps in the way of it. That was my reason for remarking they’re lucky to be alive. They’re lucky Amazon thinks they have value because the moment they don’t think it, they’re dead without internal AWS support.
Twitch provides value to Amazon by operating at a loss and paying for AWS on the back end, Twitch might appear less profitable (or even operate at a loss), AWS still records revenue from the transactions. You're looking at the surface, where Twitch needs to be individually profitable. Companies use shells like this in far deeper ways for their own tax benefits.
This allows Amazon to shift their tax burden to a company that's operating "at a loss", and keep the revenue with AWS and show record profits.
Companies wouldn't just buy others up, intending that all they do is cause harm. Twitch is being leveraged in deeper ways.
Im not sure why people are disagreeing or downvoting me while also making my point. I said they’re lucky to be alive and I highlighted why. They cannot survive without Amazon or AWS. That was the whole point. Yes they serve some alternate purpose to Amazon surely, but again that’s also a threat.
If for whatever reason they stop serving that purpose (whatever it is) or someone high up stops seeing their value, they’re done for as a business altogether. Because they can’t justify themselves internally much at all and their financials are probably awful. That was my point. And if Amazon decides they’re done with them for whatever reason, they cannot survive without AWS being so cheap for them. Not sure how that point got lost in the sauce.
Taxes are monetary losses. Twitch is providing monetary benefit to Amazon. That is their 'success'. That IS their survival.
AWS is only cheap for them artificially. You keep replying as if Twitch needs to make a profit to be 'successful'. It doesn't. It doesn't need AWS to be artificially cheap either. You're missing the forest for the trees.