Will Amazon Shut Down Kick Livestreams?

Intro today we will try to answer the question why Amazon won't shut down cake reach that conclusion you must first determine whether twitch is making money from cake but first some context cake is a live streaming platform that bursts into the scene with a better 95 Revenue speed for its creators it's a more lucrative offer than their competitor twitch the platform began signing out larger creators like add in Ross ice Poseidon Hikaru Destiny Trainwreck xqc and amaranth of which bringing tens of thousands of viewers to their streams as competition between the two streaming services heats up there has been a heated debate on whether kick is making twitch any money an ex-software engineer at twitch Sarah's Hall claimed because twitch uses Amazon Services specifically the IVs which is twitch's video system wrapped in Amazon apis it should mean Kik is subsidizing Twitch by paying to use which is a video system via Amazon web service this is Cirrus also said paying eight to ten times the operating costs of twitch is not a sustainable growth plan this seems like a reasonable conclusion from a seasoned veteran cake appeared out of nowhere to move so fast they needed a way to house tens of thousands to millions of streamers overnight one way to do this was to use Amazon's AWS Services sound streamers even had an argument over whether twitch may take any money among other things involving slander and misspeaking why would I how to compromise my morals and ethics ethics for more money you want to show cringe to me personally respectfully people that say stuff like this you don't understand that Kik makes twitch money like Kik is using twitch's services and if twitch really wanted they could just stop giving these services to kick but right now they're just sitting back like thanks I guess which profits Amazon profits but not necessarily the other way around although there is a relationship there you know like Amazon can fund Twitch in ways if it chooses to yeah yeah I mean if [ __ ] were to go down and things like and and things are are going wrong they have a lot more Escape Routes with Amazon because they own the service at whatever and if yeah of course they have more leeway other more sophisticated streamers simply decided spectating was the best way to melt the drama for what it was worth that's the xqc's Meltdown bro is that still going on like are you kidding me for real oh my God like Ox of any kind not even not even a slight part of it I feel like it's a little bit disingenuous to pretend that they don't care about Gamba or that that's not a prioritization on the streaming platform that they created because they saw how profitable gambling streams were pressures of kick and steak are probably hoping that those viewers end up also seeing the gambling patterns so now on not only are doing speculation you're also you're literally talking to the owners and talking for you're making so does twitch actually make money from Kik the CEO of twitch himself Dan Clancy actually answered this question in a stream with the streamer Jake lucky cake gave 100 million dollars to xqc to stream on Kik Dan Clancy went on stream to respond to the questions regarding his competitors deal in the Stream Jake Does Kick make money from Twitch lucky asked twitch's CEO with a kick makes twitch any money click used Amazon's AWS services so does that mean cake is subsidizing Twitch by paying Amazon for their streaming services which is CEO Dan Clancy shot down the claims right away he said no the simpler answer is it doesn't make twitch any money he explained Amazon web services was not a part of twitch Amazon's IVs which is what Kik is using was an AWS service which was only Built off of twitch and that cake was using them right now kick makes twitch money um uh meaning in which way I think people relate to AWS oh okay um uh so does it make first of all it's part of AWS so the simple answer is it doesn't make twitch money because AWS is not part of twitch um uh for those that don't understand our um what we call IVs internet video service um is um uh is a service of AWS it was built off of um twitch and so and Kik is using them right now um this was very like knowledgeable AWS does this they generalize things and lets other people use them even so what What if Amazon shut down Kick to save Twitch if Amazon disregarded its reputation and actually shut down kick to save twitch as unlikely and ridiculous at that sounds what would happen What would cake actually do if Amazon shut down kick to save twitch add Craven kicks founder and CEO actually answered that question in a live stream Ed told everyone the projections made by the X twitch developer Cirrus Hall was inaccurate they are not spending eight to ten times the money to operate and if Amazon actually did kick them out they could always go to another cloud service like cloudflare here's a clip of what he said yeah and I think the IBS one I think that's like a really common misconception obviously IBS is like an Amazon product and and that's like you know I think a lot of people keep bringing that up and it's obviously a really good point but the thing is like when it comes to IBS IBS isn't the only product in the uh in the market right like for example another really big product is cloud plans streaming service they offer exactly the same service so what you've kind of got you've got a situation where there is essentially multiple companies that offer the exact same product and because of that you basically have companies bidding against each other to offer you exactly the same you know product and because at the price point especially the price point is much much lower we're talking like Cost Plus like you know single digit percentage right so did the whole eight to nine times the cost is completely wrong like we're talking like a markup of single percentage digits oh wow and and then if if for example IBS was to say no we don't want you anymore like good switch within 24 hours to a competitor Amazon web services is Amazon's most profitable segment while Amazon is known for its e-commerce platform which generates the bulk of Amazon's revenue in terms of net profits and profit margins Amazon web service mix more net profits for Amazon without Amazon's AWS Services Amazon would have been unprofitable for many more years so to conclude no Amazon won't shut down Kik Even If it threatens twitch's Revenue Amazon would never favor a company like twitch that isn't making it money over another company like cake that's paying it money AWS is Amazon's Cash Cow not twitch it is still a fact Conclusion that twitch is burning money to pay for Amazon's IVs live streaming services both streaming services have their own problems to solve but they have similar money problems it may have the billions fromstate.com but they're still burning money even though it's not as much as people claim it is through their use of Amazon web services which on the other hand doesn't make any money at least according to all the moves they've been making to take away streamer income twitch streamers and 4B seems to think so whether twitch or kick ends up at the top spot in the streaming world is a question we'll get to see answer a couple years from now things are still up in the air this isn't the first time a competitor tried to knock twitch of its Purge Microsoft tried to get into the streaming Market with mixer but they failed so far kick has been making All the Right Moves it has to its deals with Rockstar streamers and its enticing Revenue split created an ecosystem for streamers will flock to its platform organically which may be the top live streaming platform right now but who knows we might see an era where it's viable to stream across multiple different platforms I hope you liked the video leave a like if you did and subscribe if you haven't already it's much appreciated