Twitch’s CEO Dan Clancy has explained why the Amazon-owned platform is done offering huge contracts to streamers.
A handful of the Amazon-owned platform’s employees were shown the door amid widespread layoffs whichthe company’s CEO Dan Clancy confirmedin ablog post.
Just a few days later, Clancy went live on the platform to answer questions from the community, where he revealed thatTwitch isn’t currently profitable. Not only that, he explained why Twitch is done offering massive contracts to the biggest creators on the site.
Twitch will no longer sign streamers to massive contracts
In the last half-decade, we’ve seen major strides from rivals such as YouTube, Facebook, Mixer, and more recently Kick, overtake Twitch’s spot in the streaming industry —spending millions signing streamers to multi-year contracts.
While Twitch fought back and signed numerous top streamers to deals, it appears they’ll no longer be pulling out their checkbook.
“I can tell you the cost of retaining those streamers would have been far more than the revenue generated,” he said. “That is something we’ve been very clear about, we don’t want to do that.”
Twitch is done with big streamer contractsBeen known for awhile but it is not worth the cost of retaining individual streamerspic.twitter.com/gsQAOz6VDb
He added: “Because the only way to do that then is to have this unbalance where we make up for that on smaller streamers and we don’t want to do that.”
Shay Robson was a Staff Writer on Dexerto’s UK team, specializing in shooter games like Valorant and Call of Duty, as well as sports games like EA SPORTS FC. He also covered Twitch and YouTube content. He also has bylines at Gamezo.
