Amazon is reportedly regretting its $1 billion purchase of Twitch in 2014. Internal statistics now suggest the streaming giant is well on its way to becoming a “zombie brand.”
The future of Twitch doesn't look bright. Can they turn it around or will they become a zombie?
Streaming (and thus Twitch) remains one of the most popular forms of online entertainment, but the hype alone doesn’t guarantee the live broadcasting brand will turn a profit. The Wall Street Journal published a report this week that found the site’s biggest spenders are showing less interest. Views are down, and money is trickling into Amazon’s pockets at a slower pace as engagement declines.
For some, it’s been clear for a while. In January, Twitch laid off 500 employees in the name of profit. This slow pace and lack of growth could be a symptom of a larger problem. Amazon has a habit of making acquisitions for growing brands like Goodreads and Mechanical Turk. In their space, each brand is often a leader that sets the standard. An acquisition by a giant like Amazon would ideally fuel further growth, but as a small part of a large company with little room for error, a short window of less-than-stellar sales can often be devastating.
Goodreads, MTurk and discount finder Woot are still owned by Amazon, but they all have competitors that seem to be growing faster. With sites like Storygraph, Clickworker and Newegg, these Amazon sites are sometimes overshadowed by smaller companies that are less afraid of taking risks. Twitch risks becoming the same thing. As it inches closer to life as a “zombie brand,” sites like Kick continue to stake a claim to the competition. Twitch’s slowdown also highlights the fact that the site has outlived its original purpose.
