The MMORPG streamer Asmongold is one of the most famous content creators on Twitch. However, the platform doesn’t get much out of it: according to its calculations, Asmongold Twitch costs several million US dollars annually.
This is how expensive Asmongold is: The streamer tried to find out using an online calculator. Previously, Asmongold had seen a similar invoice from his Twitch colleague “PirateSoftware” and concluded: “Dan [Anm.d.Red.: Twitch-Chef Dan Clancy] Must fucking hate me.”
Asmongold promptly entered his own data into the Amazon IVS tool. Based on 6 hours of broadcasting in front of around 20,500 viewers, Twitch would incur costs of more than 8,000 US dollars per stream, the equivalent of around 7,400 euros. In fact, Asmongold has had an average of more than 29,000 viewers in the last 3 months (via TwitchTracker).
Calculated over a whole year in which the streamer broadcasts almost daily on Twitch, Asmongold’s platform costs $2.8 million or almost 2.6 million euros annually.
A decision by Asmongold is really expensive for Twitch
Why does Asmongold Twitch cost so much money? When a streamer goes on air on Twitch, the streaming platform receives their content and broadcasts it to viewers. The more data is transferred this way, the more expensive it becomes for Twitch.
In addition, the platform incurs costs for the servers on which VoDs and clips are stored. To offset these costs, Twitch relies on revenue: in the form of advertising broadcast across the platform and the share that Twitch receives from subs (the paid subscriptions).
However, in mid-2022, Asmongold hardly streams on his main account with almost 3.5 million followers for personal reasons. Instead, the streamer prefers to broadcast on his second account zackrawrr. However, this is not monetized: it has no subs there and does not run any advertising. This means that Twitch pays for the bandwidth that it uses, but is unlikely to earn much from it.
What’s the problem with that? Twitch is not profitable in its current state, CEO Dan Clancy admitted that in January. This circumstance led, among other things, to the dismissal of approximately 500 employees, which corresponded to 35% of the workforce.
Twitch is also on a cost-cutting path: after the VoD function was switched off in South Korea, the platform plans to stop operating there completely on February 27th. This may mean a difficult decision for the local streamers:
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