Google was close to buying Twitch just a couple of months ago. The interest shown by the tech-giant made sense, as Twitch could have been combined its services with Google to offer better services for gamers. Moreover, Google is always interested in expanding its already gigantic user-base.
Other companies are interested in Twitch as well. Amazon allegedly acquires Twitch, according to the latest rumors. On Monday, the website The Information claims that Amazon will pay $1 billion for the video game streaming site. Neither Amazon, nor Twitch, have released any comments so far on the matter.
Twitch was introduced in June 2011. Its main focus is represented by video games. Basically, the platform, which is now one of the largest sources of web-traffic in the U.S., offers playthroughs of video games by users. Moreover, visitors can view content live or on-demand.
So far, Twitch managed to raise $35 million, with $20 million only in September 2013, Re/Code notes.
Video games are among the most popular form of content on YouTube, Reuters reports. So for Google, this will be a loss. For regular users, on the other hand, enjoying more diverse video platforms may be a good thing. YouTube announced in June that it will add new video tools for creators. Among the most important is the ability to upload videos at 60 fps, a highly relevant feature for gamers.
Amazon allegedly acquires Twitch to catch-up with Google and Netflix
Most gamers are young and represent an important target for most tech-companies. There are around one million gamers who upload their recordings each month, while around 50 million unique visitors as of last month watch them and comment. Not only that there are a lot of unique monthly visitors, but they are very engaged with the web-site. Re/Code says that according to a Twitch report, close to 60 percent of the visitors spend more than 20 hours per week on Twitch.
The problem for Amazon will be how exactly to monetize the acquisition. Younger men are harder to reach, but Amazon may adapt its Prime subscriptions to the new video business. Some of the users who upload their recordings on Twitch ask for donations or subsctiptions, so Amazon will have to deal with this type of engagement. Amazon allegedly acquires Twitch, so it will probably have to find another method of reward the broadcasters, in order to retain them on the platform.