On August 25, Amazon agreed to pay $970 million for Twitch. Twitch is a live video game streaming site with more than 55 million users that's like YouTube for video games.
As of July, Twitch achieved 15 billion minutes of content, and users spent more than 100 minutes a day on the site, on average. Each user has a broadcast channel, which comes with a built-in chat room where viewers can chat. Viewers can subscribe to a channel for $4.99/month, a small portion of which goes to Twitch. With 55 million users, the profits are huge.
Twitch has become a huge part of the internet, which accounts for nearly 2% of all internet traffic in the U.S, ranking after only Netflix, Google and Apple.
http://money.cnn.com/2014/08/25/technology/amazon-twitch-acquisition/
Amazon has made some major moves as a company in the last few months. With their releases of new tablet and mobile devices they are certainly trying to make a name for themselves in the every growing industry associated with these devices. Additionally, Amazon's instant video has also gained popularity and as a quasi competitor with Netflix and other online streaming entities.
ReplyDeleteThe acquisition of Twitch by Amazon should hopefully be a beneficial one for the company. While I do not know much about Twitch from the article above it seems to be quite popular and could have potential for Amazon.
Currently, Amazon is not doing so hot seeing a very large drop in stock prices late last week from missed forecasting. With the release of the new products during the summer and the purchase of Twitch it seems Amazon thought they would do much better than they actually did. It will be interesting to see how they do in the coming weeks.
Amazon is definitely on the decline right now and they are trying make power moves to rise back up like the releasing of their new tablet and now this purchase of Twitch TV. I like the move because almost every household has a computer and has children that love playing and watching people playing video games.
ReplyDeleteI think buying Twitch was a good move for Amazon. The fact that the website accounted for almost 2% of internet traffic shows just how fast it is growing. It is only going to grow more popular as eSports grow. Espn 3 even recently showed a rebroadcast of the League of Legends World Championship Final that was originally broadcast on Twitch. Perhaps this is to try to bounce back from the failure of their fire phones.
ReplyDelete