Despite prior rumors of Google buying Twitch, it has been confirmed that Amazon has purchased the online broadcasting service for $970 million in cash money. KA-CHING!
The melding of Twitch and Youtube seemed like a no brainer. Taking a successful user driven video-on-demand service and combing it with a successful live broadcast service made sense. It made even more sense as time went on and Twitch started removing archives. The prevalent thought was that Youtube would become the archive service. Even the enabling of music copyright software lead many to believe Twitch was grooming itself for a Google buyout.
The marriage of Amazon and Twitch may be a little less clear but potentially just as powerful. Amazon has been building itself as a competitor to Netflix in the arena of streaming video for movies and previously aired television shows. Both companies have been slowly building exclusive deals for content and developing original content. By acquiring Twitch, Amazon has now thrown its hat in to the ring of live broadcasts as well as user driven content. Live events are something Netflix doesn’t currently offer and could potentially help Amazon set themselves apart.
A constant source of content is a potential gold mine for Amazon but they may need to tread lightly on the community of broadcasters because of the possible conflict with advertising. It is a fair to guess that Amazon will not be enthusiastic about competitor’s ads running on a site they own. The conflict will come into play when it starts effecting the revenue that some of Twitch’s top broadcasters make. Cutting their ability to draw advertising revenue will change their bottom line and the relationship with Twitch.
The deal is still fresh and not all the details are known. The press release makes it sound like Twitch will continue to run autonomously but that may be subject to change in the long run.
Paul Novak is a self described Polish ninja toiling away as an IT professional but more into gaming and writing. Physically existing in the west side of the Commonwealth of Pennsylvania yet existentially flowing with the ether of the Internet. Found here at What’s Your Tag? and on the Twitter @dudewantshisrug. Game on with Team XBRO!