Twitch is reportedly at risk of being Amazon's underperforming venture as the platform continues to be unprofitable.

The company CEO Dan Clancy admitted that the streaming service remains unprofitable even after ten years of being in Amazon's portfolio.

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Twitch Nears 'Zombie Brand' Status, Insiders Say

A report by Wall Street Journal revealed that insiders are worried at the possibility of Twitch becoming a "zombie brand" under Amazon due to its unchanging performance. Its parent company is known for sidelining underperforming brands like Goodreads and Woot.

In 2014, Amazon acquired the streaming service for nearly $1 billion. However, the service has yet to achieve the expected growth despite the platform's explosive popularity.

The employees are also concerned that there might be a next round of layoffs after an annual review. Earlier this year, Twitch let go of more than 500 staff as part of its cost-cutting strategies.

Twitch Experiences Decline on Advertising, Traffic Ranking in US

Twitch is a popular streaming service wherein familiar gamers made a name for themselves in the industry. Gamers like Pokimane, Ninja, Kai Cenat, and more are known for using the platform.

Despite its popularity, the company has been facing major setbacks over the past few years. The platform has fallen from the web traffic ranking in the U.S. and its advertising sales are yet to grow.

An Amazon spokesperson shared that the company remains confident in the potential of the streaming platform. Most of the platform's revenue comes from subscriptions, gifts, and donations.

However, Twitch's biggest spenders are reportedly spending less on subscriptions and donations over time. The trend projects that the service could lose up to a quarter of a billion by the end of 2025.

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