Twitch has firmly held its position as the leader in the live-streaming space for years, outlasting competition from platforms like YouTube and Facebook Gaming. Despite whispers that Twitch may be a costly venture for Amazon, with some reports suggesting annual losses reaching $2 billion, the platform continues to thrive and is rolling out significant updates to sustain its growth.
Given Twitch’s ties to Amazon and its broad advertising reach, many assume the platform’s revenue primarily comes from large ad deals and corporate partnerships. However, that’s far from the reality.
Viewer Support Is Twitch’s Core Revenue Engine
At an event in Cannes on June 17, 2025, Twitch CEO Dan Clancy provided a key insight: two-thirds of Twitch’s revenue comes directly from viewers supporting their favorite streamers through subscriptions.
This is a figure Clancy has emphasized before, including during TwitchCon, where he noted that most people are surprised by how little of the platform’s income is driven by advertising compared to other social platforms.
Clancy explained that Twitch’s success is deeply tied to emotional connections. Viewers aren’t just paying for content; they’re paying for recognition, community involvement, and a sense of belonging.
Twitch’s New Focus: Sponsored Subscriptions
To further strengthen this relationship between streamers and their audiences, Twitch is now testing Sponsored Subscriptions – a feature that allows brands to subsidize channel subscriptions for viewers. This initiative could make discounted or free subscriptions available throughout the year, rather than being limited to seasonal events like SUBtember.
Amazon Ads is also rolling out additional tools for brands, including integrated channel branding and streamer-read advertisements, aimed at seamlessly blending sponsorships into the viewer experience.
Twitch has also introduced a new Sponsorships tab in the Creator Dashboard, where streamers can access direct brand offers. This system, developed in collaboration with StreamElements, simplifies the process for creators to engage with brands and unlock sponsorship deals.
Twitch is actively working on refreshing its mobile interface to enhance the user experience. New features such as a redesigned layout, improved discovery, and clip feeds are aimed at boosting community interaction and making it easier for viewers to support streamers.