Twitch is currently the biggest streaming platform on the market, and a former employee of the company revealed that big streamers often give the platform a loss.
Former Twitch employee says big streamers hurt the company
The ex-employee named Sam Chen made a series of tweets explaining that big streamers cause a loss for the company, and that average streamers who end up compensating for this loss caused, check out:
“The big streamers are the loss leaders. Every time someone with an average of 5,000 viewers (probably less) goes on air, Twitch loses money. The subscribers will never be enough to pay the costs.”
Chen went on to explain the situation: “Average streamers make up for this loss (average in this case is probably between 100 to 500 viewers). You are of a size where submissions are likely to outnumber viewers by a large margin. Twitch cannot be profitable without maximizing revenue from this group.”
He explained that main subscriptions aren’t free, video serving isn’t free, and big streamers have a much lower proportionate rate of subscribers/viewers on twitch than average streamers, so the damage ends up happening.
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