Twitch CEO Dan Clancy recently addressed speculation about whether its competitor, Kick, inadvertently generates revenue for Twitch due to its usage of Amazon’s services.

The growing rivalry between the two platforms has led to increasing scrutiny, especially given Twitch’s acquisition by Amazon in 2014 and Kick’s reliance on Amazon’s web services.

Kick’s growing popularity, bolstered by an influx of creators like ‘xQc‘ and ‘Amouranth’ who switched from Twitch, sparked this discussion.

The new platform offers a more generous revenue split with streamers, providing 95% of subscription earnings to creators as opposed to Twitch’s 50% cut.

The Question of Indirect Profit

Given that Kick uses Amazon Web Services (AWS) for its streaming service, a former Amazon engineer posited that Kick was indirectly “subsidizing” Twitch through its payment to Amazon.

This claim fueled a vigorous debate about whether Kick’s operation indirectly benefits Twitch due to its association with Amazon.

Addressing this issue directly, Dan Clancy sat down with Jake Lucky for an interview and unequivocally dismissed these claims.

Twitch and Amazon: Clearing the Confusion

During the live stream on Clancy’s Twitch account, ‘DJClancy’, Lucky asked if “Kick makes Twitch money” indirectly through its use of AWS. Clancy was unequivocal in his response.

“The simple answer is it doesn’t make Twitch money,” he stated.

The CEO went on to clarify the relationship between Twitch, AWS, and Amazon. Clancy explained that AWS and Twitch are separate entities within Amazon’s ecosystem.

Interactive Video Service (IVS), the service Kick uses, is an offering of AWS that was built off of Twitch technology.

No Indirect Competition

Clancy’s clarification dispels the notion that Kick indirectly supports its rival, Twitch.

His comment about AWS working in all lines of business underlines the fact that any company using AWS services is not directly contributing to Twitch’s profits, regardless of the competitive landscape.

The discussion, therefore, can be put to rest, with Kick’s streamers reassured that their revenue is not indirectly supporting a competing platform.

This clarification offers peace of mind to the creators who have switched to Kick and are driving its growth.

As platforms like Twitch and Kick continue to compete for the loyalty of content creators and audiences, clarity about their operations and revenue models is more critical than ever.

This frank discussion from Twitch’s CEO contributes to a more transparent and nuanced understanding of the streaming industry’s competitive dynamics.