Is it better for Twitch to focus on expanding into new content categories or improving core gaming features?

Introduction

The trade-off between expanding Twitch into new content categories or improving core gaming features is a critical decision that will shape the platform's future. This scenario involves balancing growth opportunities with user retention and satisfaction. I'll analyze this trade-off by examining the current state of Twitch, potential impacts, and key metrics, then design an experiment to inform our decision.

Step 1

Clarifying Questions (3 minutes)

• What's the current revenue split between gaming and non-gaming content?

• Why it matters: Understanding the revenue distribution helps assess the potential impact of expansion.
• Hypothetical answer: 80% gaming, 20% non-gaming.
• Impact: A high gaming revenue suggests caution in expansion, while a more balanced split might encourage diversification.

• What are our key user segments, and how do they engage with gaming vs. non-gaming content?

• Why it matters: Different user segments may have varying preferences and behaviors.
• Hypothetical answer: Core gamers (60%), casual viewers (30%), content creators (10%).
• Impact: If core gamers heavily dominate, improving gaming features might be more critical.

• What's our current market share in the gaming streaming space?

• Why it matters: Market saturation could influence the decision to expand or focus on core offerings.
• Hypothetical answer: 65% market share in gaming streaming.
• Impact: High market share might suggest limited growth in gaming, favoring expansion.

• What technical challenges do we face in expanding to new content categories?

• Why it matters: Technical feasibility affects the viability of expansion.
• Hypothetical answer: Minimal challenges, our infrastructure is adaptable.
• Impact: Low technical barriers could make expansion more attractive.

• What's our timeline for implementing significant changes?

• Why it matters: The urgency of the decision impacts our approach.
• Hypothetical answer: We aim to make a decision and begin implementation within the next quarter.
• Impact: A short timeline might favor improving existing features over expansion.