Where did Twitch's revenue originally come from?

Question

Monetization

Greetings! I'm interested in the moment - where does the Twitch platform (Justin TV) get income, but such that it was sold for $1B? Is it just advertising? Or do similar services have other sources of income? Not counting the paid subscription.
I would be grateful for any comments and clarifications on the issue.

Answer 1

The startup economy is different from just businesses - it is not necessary to make a profit and recoup the purchase.
Just like amazon didn't give everything away by cache

Answer 2

It is unprofitable, just like Twitter and just like Google and Facebook have been for a long time.

Answer 3

Percentage of subscriptions, advertising, contracts with e.g. valves to cover tournaments and events.
And the fact that it was sold for a round sum means only that investors hope to sell it in the future for more than they bought it, nothing more.

Answer 4

The main sources of capitalization here are:
1. Technologies underlying this platform. Let's not forget that Justin TV was a very well-known company and in many ways pioneers in the field of mass video streaming and they have a good R&D department.
2. An audience of tens of millions of growing up gamers who go there every day.
Well, it costs so much because they are willing to pay for it.