Twitch, Amazon’s video-streaming service, reports $6M in quarterly profit Nuked 4 December 2019 Overall BELLEVUE, Wash. (AP) — Controversial video-streaming company Twitch said it reached profitability in the second quarter of 2018 after it posted an $8.3 million profit on $142.2 million in revenue. The Seattle-based company said it’s slashing $5 million in annual costs and offering a cheaper rate plan to new users in a move to attract more users. The changes, the company says, will help Twitch overcome a challenge that has vexed Facebook and other social platforms for years: attracting the kind of audience that wants to see video games, not new videos, or live events with celebrities and NBA teams, or access to tons of content made entirely by amateurs. Twitch is controlled by Amazon. All three of the dominant streaming services, Google’s YouTube, Facebook and Twitch, now have some paid subscriptions or advertising options, all in an effort to make their video content that viewers really want to see more desirable than the least expensive versions. Amazon said it wants Twitch to become a 100 million-user brand with a billion views per month by 2020. “We did have a few headwinds as you know with interest costs going up dramatically, royalties going up dramatically with the classifying of something as an affiliate partner, and some of the royalties going up,” said Twitch co-founder Emmett Shear on the company’s second-quarter earnings call Tuesday. “But the business has never been more profitable, and it continues to generate lots of cash flow.” To grow revenue from live events and try to attract more casual fans, Twitch has cut prices for new users as well as lowering prices for its most frequent users. The Seattle-based company is spending $1 billion to upgrade streaming infrastructure, it said, and has begun charging fees for some programming, including its most-popular content team and weekly “broadcast event” called “TwitchCon.” Twitch said it plans to invest in artificial intelligence, machine learning and automated video production tools. “We see the service becoming ubiquitous,” Shear said. “We see Twitch becoming a social service, and not a channel where one has to just watch a stream to be part of the service, but a service where one can watch a stream and call out comments and contributions or provide contributions and be a part of the conversation.” Spread the fake ai universe Leave a Reply Cancel ReplyYour email address will not be published.CommentName* Email* Website Save my name, email, and website in this browser for the next time I comment.