Why Did Amazon Buy Twitch.tv?

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Video games have evolved from something people just played to something that people can now sit back and watch thanks to the fast internet access and multiplayer games. This new trend has enticed web giant Amazon to get into a $1.1 billion deal to buy Twitch which is the most popular website for watching people play games.

Amazon bought the fastest growing television network in America that boasts 55 million visitors who watch more than 16 billion minutes of videos every month with more than 1.1 million people broadcasting their gaming activity to the service. The acquisition, despite heavy criticism is a bargain for Amazon. It effectively gives Amazon a TV network, which at peak hours rivals some of the more established television players like CNN and on top of that, is highly valued by a key consumer demographic of mostly millennial youth.

Amazon outmaneuvered Google in its bid for twitch. It underscores Amazon’s growing appetite for delivering content to digital devices, especially Amazon tablets and smartphones. The millions of eyeballs are valuable to web companies, and Amazon, although usually known for its retailing, is no exception.

Twitch was non-existent a little over three years ago, and now commands up to 55 million unique global viewers monthly, turning gaming into a spectator as much as a participatory activity. This goes to show behavior patterns, once seemingly on the fringe can turn into large online communities in no time while in the in the hands of tech entrepreneurs. The video in video games is now a billion-dollar business.

Twitch streams competitions drawing millions of viewers every month. Twitch, unlike YouTube stream most of their video as live sessions specializing in live videos of people playing games Twitch viewers typically see the screen of a broadcaster, featuring the game being played, along with a video feed of the player’s face and a chat window so they can communicate with the player and others watching the action. Like YouTube, anyone can start and host a channel as it can handle mass content. Twitch is the equivalent of gamers’ Monday Night Football.

“Broadcasting and watching gameplay is a global phenomenon,” Jeff Bezos, the chief executive of Amazon, said in a statement, “and Twitch has built a platform that brings together millions of people who watch billions of minutes of games each month.”

Twitch is now among the 15 most visited websites in the world, according to an internet networking company called Sandvine. Twitch viewers either visit the site to get a closer look at games before buying them or improve their gaming skills by watching people who have mastered a game or just.

Gamers can transmit games over Twitch by using PCs along with consoles like the PlayStation 4 and Xbox 1. The service has grown with the rise of e-sports (professional gaming) Twitch broadcasts the action from live tournaments for big games
It is yet to emerge how Amazon intends to fit Twitch into its ever-expanding portfolio of businesses. It could accelerate the company’s advertising ambitions through the huge video network that can be used to pump commercials through.
Amazon plans to let Twitch operate independently, out of its offices in San Francisco, according to Emmet Shear, Twitch’s chief executive. Amazon will pay to retain Twitch employees and $970 million in cash.
“We’re heavily invested in games already,” Mike Frazzini, vice president for Amazon games, said in an interview. “We have a healthy business selling games to customers.” This year, Amazon ad revenue is expected to jump 40 percent, to over $1 billion, according to estimates from eMarketer, a technology research firm.



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