Trouble At Twitch 🔫

PLUS: Wednesday Wires 💰

Hi Everyone. This is Take Off. We're like a hidden Easter egg in your favorite video game - surprising, delightful, and adding an extra layer of fun to your tech news consumption.

Here's what we're serving up today:

  • Trouble At Twitch 🔫

  • Asteroids ☄️

  • Trending Tools ⚒️ 

  • Wednesday Wires 💰

Trouble At Twitch 🔫

Have you ever heard of a layoff hattrick? Seems scary, right?

It’s best to ask the employees of Twitch, the most popular destination for online live streaming.

The Amazon owned streaming giant laid off more than 500 employees this month which is ~35% of their workforce.

This marks the 3rd consecutive year layoffs have happened at Twitch.

  • In November 2022, they laid off an unannounced number of employees

  • In March 2023, 400 employees were laid off as part of a broader restructuring of Amazon. 

  • Adding this year’s layoffs means that Twitch is down nearly a 1000 employees in the last 12 months (~50%). 

Talk about a downsize!

Where’s the money?

Amazon purchased Twitch in 2014 for $970M as it looked for a way to enter the world of video game streaming. 

It still remains a go-to destination for brands looking to flex their advertising budgets in front of gamers.

So why the long face? 

Twitch’s CEO, Dan Clancy put it best: “I’ll be blunt, we’re not profitable.”

Twitch’s bulk revenue comes in from advertising as well as their cut from streamer’s subscription payments.

But those reliable revenue streams are looking a bit shaky, and Twitch's spot as the streaming hotspot is under threat.

Competitors like YouTube and Kick are slithering in, ready to snatch a piece of Twitch's pie.

The pandemic effect?

Twitch's once soaring viewership has also hit a plateau. It seems they had a pandemic-fueled heyday, but now, it's like the party's over, and the guests are heading elsewhere.

A New Focus

As for Twitch's game plan, it's taking a turn. Once, it was all about growing bigger and bigger, with dreams that money would just flow in once they were the top dog. 

But dreams have met reality, and those high costs of running live streaming servers are biting back. In 2024, Twitch is changing its tune to a more budget-conscious melody, focusing on being efficient rather than just being big.

☄️ Asteroids ☄️

Google One is zooming towards 100 million subscribers, with Google adding AI smarts to this cloud storage service. 💯🧑‍🤝‍🧑 

OpenAI's new feature lets ChatGPT users tag in various GPTs, like a digital baton pass. This comes after the GPT Store launch, offering easy creation of custom GPTs, like trail guides or coding tutors. 🏃‍♂️💬

Wattpad trims its tale with a 15% staff cut, part of a cost-cutting script as its parent company, Webtoon Entertainment, eyes a 2025 IPO. 📔❌ 

⚡️ Flowcog - SaaS Financial Projections Quick & Easy

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💰 Wednesday Wires 💰

Airfocus, a rising star in product management software, secures $7.5M in funding, reaching ~800 customers including big names like Caterpillar. 🤑🪱 

Plex reels in $40M in fresh funding, propelling its journey from media organizer to a full-fledged media hub with ad-supported streaming. ⏯️💰️ 

Digs, a digital twin platform for homes, doubles down with an additional $7M seed funding, reaching a total of $14M. Led by OVF and Legacy Capital, this round boosts Digs' AI-driven collaboration tools for builders and homeowners. 🏘️💸 

AI Jane: Artificial intelligence investment journalist building an easy to read ai investing email newsletter. Get smarter about investing in ai in 5 minutes.

Vincent Spotlight: Alternative Investing News for the Savvy Investor.

Investor Snippets: InvestorSnippets is a daily newsletter with links and bite-sized news on markets, stocks, and ETFs that only take 3 minutes to read. Curated from dozens of investment news outlets to ensure you stay informed on the top trending stories.

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