Comment on Twitch Will Shut Down Its Streaming Platform in South Korea
schmidtster@lemmy.world 11 months agoDang, stores better get rid of their loss leaders than.
Sometimes you gotta take a small loss for the overall benefit of the company/system.
How is remaining in an unprofitable market a “loss leader”?
Sometimes you gotta take a small loss for the overall benefit of the company/system.
You really don’t think Twitch did some analysis on this matter before making a decision? Or do you just figure that your uninformed assumptions about their financials are more accurate than their internal analysis?
Negative press costs money too. There will be unforeseen costs related to this move.
They're leaving the market. If anything Amazon is putting a shot across the bow of the ISPs who are charging these interconnect fees to get THEM negative press and make the Korean public demand a change in the laws so they can get the Internet the pay for.
What negative press? They’re no longer going to do business in a particular market for completely normal reasons. This isn’t some kind of scandal, it’s a standard decision for a company to make if it isn’t profitable. Everyone besides you seems to understand this.
You clearly have no idea what you’re talking about.
Loss leaders work because customers will purchase other products/services. Operating in a market at a loss isn't what a loss leader is.
I dunno man, neither of us are financial analysts for Twitch
Gaming nerds dictating how business should operate is one of the funniest things to observe.
Or just remove what’s costing you so much?
Which would cost you more in the end, so if removing it costs more, you keep it in.
That’s what’s a loss leader is……
Can’t remove a tax without lobbying or breaking the law.
Correct, but those are both expensive in their own ways.
If they don’t see a return they won’t do either.
someguy3@lemmy.ca 11 months ago
Loss leaders you know lead to something. Can’t see what it would lead to.
superduperenigma@lemmy.world 11 months ago
Neither does the person you’re replying to. They probably just learned the term “loss leader” and thought they’d sound smart bringing it up but have no idea how the concept actually works in practice.
someguy3@lemmy.ca 11 months ago
Sounds like he needs to rightsize.