[jmyeet]

I'm aware. This just further makes my point. Twitch develops IVS. The internal accounting is that numbers move around in a spreadsheet to "pay" for that. Amazon then moves more numbers around to "charge" Twitch for IVS, AWS or both.

You can select one set of numbers that makes Twitch look highly profitable or highly unprofitable with zero bottom-line (to Amazon) difference.

Why I bring this up is that Twitch uses it's unprofitable status to both justify layoffs and to reduce what they pay to creators. They've cut the sub split. Who knows what the ad revenue split really is. AWS is a huge profit center for Amazon. The fact that IVS continues to exists strongly suggests its profitable. If not it would be cancelled. But that profit is being attributed to AWS not Twitch even though its Twitch IP and Twitch employees who work on it.

My point is a completely fabricate narrative is being used to cut costs and thus increase profits.

[rescbr]

As I saw it, still think this is in reverse. Twitch as an org was running at a loss and had some tech and network that could be packed up and sold to enterprises.

AWS, which is the B2B side of the house, resells this as IVS, take some % to pay for sales and integration. Twitch makes a profit on IVS, but IVS alone doesn’t pay Twitch bills. Now the Twitch org runs less of a loss.

This is pure partnership play. With the advantage that the partner is in-house, integrated on the marketplace and can rely on the house sales team as well.

I don’t believe that the tech is not profitable. It’s just that the business of making ad-supported B2C profitable is hard.

If I were to guess, I’d say AWS IVS customers are a really tiny % of Twitch’s traffic, but are the most profitable.