Twitch CEO Dan Clancy has lifted the lid on the platform’s bid for profitability, admitting they had to shed “non-sustainable” contracts and make some changes to Twitch Prime.
Even though Twitch sits atop the livestreaming world as the go-to website, there have been suggestions that the Amazon-owned platform is a “zombie” brand for the online giant. That came only a year ago.
At the end of 2024, there was a report claiming that the site reportedly loses money despite $2 billion in revenue, and there are fears that mass layoffs will hit before long. Rumble CEO Chris Pavlovski predicted that Twitch will be “shut down” or sold off before the end of 2026, too.
It has become a regular talking point for Twitch CEO Dan Clancy whenever he answers questions about the platform. However, he believes they’re in a “very strong” position in their bid for profitability.
Dan Clancy addresses Twitch being profitable
“If you go back in time, we made decisions that weren’t the right way to think about our business in terms of the long-term sustainability of the business, so I feel good where we’re at now in terms of our structure for streamer compensation,” Clancy told The Game Business Live.
He added that Twitch now has a “well-defined” program for revenue share with streamers in the form of Partner Plus.“We have pulled back from this idea of paying top streamers more than what they make on Twitch in this competitive tit-for-tat, where we were creating kind of non-sustainable contracts.
“So, we’ve made a number of changes and we feel very good that we’re now in a very good place. Oh, and also Prime, which is a very important part of Twitch, we got that into a structure that is sustainable. We feel like we’re in a very strong place and I like how our business structure works.”
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Clancy also recently revealed that two-thirds of the platform’s revenue comes from subscriptions and fans supporting streamers.
“One thing that many people don’t realize is that two-thirds of our revenue comes directly from our viewers supporting the creators that they love,” he told Axios on June 17.
Content shared from www.dexerto.com.