The Complex Reality of Twitch’s Profitability

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Twitch is facing various issues at both a personnel and monetization level, making information surrounding these points particularly relevant. A viral clip from the account of Dexerto has surfaced, in which Pirate Software explains the real expenses of hosting a channel on Twitch’s platform, revealing impressive figures.

Upon seeing the mention in the post, the creator posted a comment providing necessary context to the clip. He clarified that Twitch doesn’t receive any special treatment and pays the same rates as everyone else, including applicable discounts for large volumes that are not widely known. The rates shown in the clip are for a single flow and do not include high volume discounts.

Furthermore, a former Twitch employee challenged the accuracy of the figures, stating that large-scale rates differ significantly from simple calculations based on public rates. Twitch and other competitors receive substantial discounts, with bulk costs being almost 4 times less than the public prices for IVS.

In light of this information, hosting a Twitch live stream would cost about $275 instead of $1,102. This means that the stream needs to generate more than $275 in income for Twitch to be profitable, factoring in taxes and the streamer’s share. While some streamers achieve this, they represent a low percentage compared to creators who have a smaller viewer base or lack a solid subscriber count.

This information sheds light on the financial considerations of hosting channels on Twitch, revealing the challenges and requirements for profitability in this platform.

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