By Sagar V. Mankar Amazon-owned streaming platform Twitch generated approximately $667 million from advertising and $1.3 billion from commerce revenue in 2023, according to a report by The Wall Street Journal. Despite these figures, Twitch contributes less than 0.5% to Amazon’s overall revenue.
Twitch, acquired by Amazon for nearly $1 billion in 2014, remains unprofitable even after two rounds of layoffs since early 2023. A concerning trend has emerged where Twitch’s top users are spending less on creator subscriptions and donations. If this pattern continues, it could result in an annual revenue decline of nearly $250 million by 2025.
The platform has also seen leadership changes. Emmett Shear, Twitch’s founder, stepped down as CEO in March 2023 and was succeeded by Dan Clancy.
While Twitch continues to face financial struggles, it remains a major hub for live video streaming, especially in gaming. Known for its long-form gaming broadcasts, the platform has enjoyed periods of significant popularity. However, its profitability remains elusive despite its large user base.
To improve user engagement, Twitch is rolling out a significant update to its mobile app. The app will now open directly to a TikTok-style discovery feed, labeled as the “Home” tab, instead of the traditional “Following” tab. This shift aims to help users discover more content easily and boost their engagement.
The updated app, currently rolling out to Android and iOS users, includes other improvements as well. Users will find a new Browse tab, an Activity tab for notifications, a profile tab, and a plus button for quick access to livestreaming features. The Following feed is still accessible in the upper-left corner.
According to Twitch, over 50% of its users primarily access the platform via mobile devices. The redesign aims to make content discovery smoother and more enjoyable, ultimately encouraging users to return more frequently.
Sources: The Wall Street Journal, Twitch Blog Post.