Twitch CEO Addresses Approach Towards Big Streamer Contracts Amid Non-Profitable Phase

Published 01/12/2024, 9:33 AM EST

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Twitch planning to not retain streamers anymore? The latest public broadcast address made by the Twitch CEO has left the community with a lot of queries. Is it game over for the giant? What’s next for the Amazon-owned platform? Well, if the recent layoffs in the streaming giant took you by surprise, this recent update in Twitch’s ‘non-profitable phase’ might raise bigger questions. 

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Things haven’t been pleasant for Twitch lately. In fact, the platform had been brought under community scrutiny after the policy changes made by the platform made headlines. Ever since then, it has been a challenging run for the streaming giant. Moreover, the rise of Kick has only made things worse for Twitch in recent times. However, the streaming platform hitting a ‘no-profit’ stage is worse than anyone would have predicted. Now, the CEO has some big insights on the coming changes in the platform. 

“We aren’t profitable”: Clancy answers queries post company layoffs 

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Recently, Twitch dropped the bomb when it decided to lay off around 500 employees, which was around 35% of the company’s workforce. Of course, it was a surprising start for 2024, but some pundits believe this could be seen coming for a while. On January 11, Daniel Clancy went live on his Twitch channel and faced the music during the live Q&A session. The latter revealed striking details on the current roadmap of the company and how things might be subjected to some major changes in the coming season. From streamer retention to company policies, Clancy talked about all the possibilities. 

The cost of retaining these steamers would have been far more than the revenue generated. We don’t want to do that. We really need to run the company based on where we are today. We aren’t profitable at this point. Amazon has been extremely supportive of Twitch. We need to make sure Twitch is the right size so we can be here for a long time. The bottom line is, we were bigger than we needed to be, in terms of the size we needed to be to service your needs,” Clancy stated, while answering the queries. 

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Twitch to implement policy changes soon? 

Most of the debates around Twitch kick-started after the company decided to bring some regulations to the creator policy. Back in August, a lot of streamers had raised their concerns with the coming changes on the platform, eventually leading to the Kick vs Twitch rivalry. This included a lot of celebrated Twitch celebrities deciding to move on from the Amazon-owned platform. However, with the recent events, it looks like the policies will be soon subjected to further changes. 

In December 2023, the platform announced some updates to their ‘sexual Content policy’. This brought strict regulations against implied nudity or explicit content on the platform. But during the latest public interaction, Dan Clancy expressed they would be “reconsidering” some of the guidelines.

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“I’ll tell you what, once we have the option to blur thumbnails and allow users to indicate that they don’t want to see content with a sexual theme, we might give it another thought. We’re focusing on those two things,” the CEO said about the possibility. 

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What do you think should be the next move by the platform? 

Watch the story “That’s a Wrap Twitch: Kai Cenat and IShowSpeed Ink Multi-Million Dollar Deal With Rumble With Epic Live-Stream Show

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Written by:

Vaibhav Singh Tomar

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?A Supernova resistant to pressure.? Greetings, fellow seekers of the extraordinary! I'm Vaibhav Singh Tomar, your guide to the electrifying universe of eSports and storytelling at EssentiallySports. With a degree in Journalism and Mass Communication and over 7+ years of crafting narratives, I don't just write about esports; I sculpt captivating tales within this digital arena.
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Edited by:

Rohan Karnad

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