this post was submitted on 14 Jan 2024
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I wouldn't apply Twitch's situation to YouTube, IF it's even true, because YouTube got a much wider reach and more advertising possibilities than gaming and somewhat related audiences.
It doesn't seem to me a given that they'd boast about their success either. Because if they hide the situation the way they do, they can do this, turn to the customers saying "Welp, I guess this much is not enough. Gotta put more ads on it and raise prices 🤷". It's easier to placate the users if they are convinced it is inevitable. I imagine you are considering of what investors might think if products are said to be unprofitable, but overall Google/Alphabet still gets tens of billions in clean profits every year.
Most of all, again, if this is such a money sink that in over a decade they couldn't figure out how to make money of it, why would they still keep at it? Why wouldn't they sell it off or close it? If I assume they are honest about unprofitability, as much as I doubt it, then they must be getting something else from it that is equally valuable as raw money. Maybe it's user data. Maybe it's the social clout of controlling a major media platform. But it has to be worth it to them or they wouldn't be hosting it. It wouldn't make sense.
But personally I just think they are lying about unprofitability, including Twitch. It's just a convenient excuse for layoffs and price hikes. It's not like they are going to show everyone their full balance sheets.