Amazon acquired streaming service Twitch back in 2014 for nearly $1 billion. Twitch has grown significantly over recent years, and it is the biggest player in the streaming market.
Twitch, however, is not profitable. And Amazon is trying to turn that around with a new plan that could allow the company to make more money off Twitch’s technology.
According to a new report from The Information, Amazon is planning to offer Twitch’s streaming technology as a service to businesses. Much like how the company used Amazon Web Services internally before making it available to others outside the company, the same thing could happen with Twitch.
It’s possible Amazon will make Twitch’s streaming technology available via Amazon Web Services, or possibly launch a separate service under different branding. The details are unclear for now, so it could be a while before this materialises at all.
Amazon selling Twitch’s streaming tech as a service to businesses would make a lot of sense. The report claims that Twitch isn’t bringing in enough revenue for Amazon, with the service only generating around $300 million in revenue in 2019, which is far short of the company’s internal forecast of $500 to $600 million. With Twitch currently being unprofitable for Amazon, it’s no surprise to see the company trying to offer new services using Twitch’s technology to make more money. Don’t worry, though, Twitch itself will continue to exist.