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Cocklomax2017-01-04 01:14:01
Monetization
Cocklomax, 2017-01-04 01:14:01

Where did Twitch's revenue originally come from?

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.

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4 answer(s)
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sim3x, 2017-01-04
@sim3x

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

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Puma Thailand, 2017-01-04
@opium

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

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hOtRush, 2017-01-04
@hOtRush

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.

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Paul Nice, 2017-01-10
@Paul_Nice

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.

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