A Twitch In Time Helps Amazon Expand
A Twitch In Time Helps Amazon Expand
Amazon has just made an acquisition which has left many analysts puzzled. The e-commerce giant has just snapped up a video streaming service called Twitch which connects gamers across the world by enabling them to broadcast game-play videos. Google's YouTube was said to be vying for the deal, but Amazon has managed to win this game.
Amazon has always been one to innovate. It has gone on to make important devices such as Kindle to those who live to read. Apart from this, the e-readers and tablets have not been far behind either. Now, Amazon is looking to create content for these devices. Apps and services such as Twitch will add a lot to Amazon's ecosystem.
Rather than starting from brass tacks and creating the content, Amazon has chosen to acquire Twitch which already has million plus viewers. Twitch has been popular for a long time now and many gamers are already celebrities on this video streaming service. It gives gamers the chance to interact and come together to broadcast game-play videos.
We are living in a virtual world and gaming has become quite a spectator sport as a result of this. In fact. Twitch's impressive traffic can leave many of its rivals behind. It is an app which is inbuilt in PS4 and Xbox 1 consoles which are selling like hot cakes. Due to these factors, Twitch has a ready user base which Amazon can also tap into for all its retail products.
Online video advertising is also catching on fast and services such as Twitch are a great way to rake in profits. A ready supply of buyers from the online gaming community can make for a win-win situation for Amazon in that it wins either which way you look at it. The e-commerce major is snapping up Twitch for a cool $970 million in cash and so far, the internet broadcasting video channel looks worth every dollar it is being purchased for.
This is the second largest deal for Amazon and it shows how popular online gaming has become. In fact, gamers even have their own world replete with rules, trends and identities. Twitch was founded in the year 2011. It is currently the 4th largest operator for attracting record traffic in the US according to research reports.
With this move, Amazon will now run neck to neck with Netflix and YouTube for competing in the world of web video streaming. Apart from advertising and subscriptions, Amazon is also going to catch an audience that is attracted to gaming in a big way. Games people play can be a boon for Amazon quite literally. This is why Twitch is big game for Amazon in the web jungle.
Twitch has the technology for video streaming that supports amazonian number of viewers simultaneously and this is why it is a winner for events such as game tournaments. Amazon clearly looks to expand its reach through this acquisition. With Twitch on its side, it seems the e-commerce giant is just itching to take on Google.
