Twitch CEO Dan Clancy has made it clear that the company is done offering massive contracts to the streamers. They have already cut roughly 400 jobs early last yearand recent reports suggest that Twitch was set to lay off a further 35% of its current staff.
Twitch is not profitable anymore
Clancy recently went live on the platform to answer community questions and revealed that Twitch isn’t currently profitable. He further explained why Twitch will not be offering massive contracts to the biggest creators on the site.
Over the past few years, rivals such as YouTube, Facebook, Mixer, and more recently Kick, surpassed Twitch in the streaming industry — spending millions signing streamers to multi-year contracts.
While the platform fought back and signed numerous top streamers to deals, it seems that they’ll no longer be offering the same.
Dan Clancy explains
Dan Clancy was appointed as the platform’s CEO in early 2023 after company co-founder Emmett Shear stepped down. Speaking in a live Q&A on January 11, he explained why the platform is no longer offering massive contracts.
“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.”
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.”
It doesn’t come as a surprise due to Twitch’s huge shift in October 2023. After years of signing creators to stream just on their platform, the platform updated guidelines to remove rules prohibiting “multi-streams” that prohibited streamers from broadcasting to several sites at once.