One of the prominent names in the video games streaming services is Twitch. An online gaming platform that has over 3 million broadcasters and 30 million daily views. Besides best gaming services, it has other entertaining features about sports, music, food, and travel. Let us know ‘Does Amazon Own Twitch?’.
Amazon showed its interest in the gaming sector back in 2012. However, in 2014, the gamers got concerned about the news of Twitch indulging in the bidding platform. Here is the answer to your concerned question that you will find most appropriate.
Amazon officially purchased Twitch back in 2014 for $970 million. The founder of Amazon -Jeff Bezos- had generated huge revenues after buying Twitch. Also, to acquire the supreme benefits of Twitch, Amazon required members to link their Twitch account with them.
How did Amazon and Twitch proceed on the same page?
Twitch is currently the top stop in the real-time video gaming sector. Further, Twitch is also noticeable for delivering non-gaming to its valued subscribers. Amazon promulgated that Twitch attracts the majority of broadband traffic in comparison to Facebook and Hulu. Ex Amazon Chief Executive anticipated that Amazon would help Twitch acquire its goal in formulating new features.
Furthermore, Twitch Prime integrates with free bonus games and additional gaming content. Besides, there is a free monthly channel subscription for Twitch Prime members. The cherry on the top was Amazon Prime member benefits for Twitch Prime users. Also, during the covid period, online video gaming apps got most popular, especially among youth. So Amazon and Twitch patched for the betterment of a passionate gaming audience.
Why does a growing platform like Twitch choose to be sold?
Twitch wins vast popularity in a small span of period. However, due to its enormous growth, the company desperately needs stable backing. New investors were taking a sheer interest in the gaming site. Shear- Twitch CEO- comprehends that support from Amazon- a company with a robust global infrastructure.
Moreover, an issue arose in the last years of Twitch as an independent community. The social site is experiencing difficulty in dealing with copyrights and license sections. Also, Twitch fumbles to deal with its financial handling in the market. Emmett Shear stated “Amazon has built relationships with big players in media, and that is very attractive for us”
The two main concerns for Twitch were as follows:
The enormous growth and ascending investors
Struggle in handling copyrights issues
Before Amazon signed a deal with Twitch, Google had made an official statement that it is on the route to buy Twitch for $1 billion. So, a question arises that why Twitch did not opt for the Google proposal? As per my research, Twitch has considered Google as YouTube second hand. Since Google-owned YouTube. So it can handle Twitch as secondary due to its similar services. Hereafter, Twitch believed that Amazon would provide the social gaming platform with the status it deserves.
Why did Amazon show its interest in Twitch?
For Amazon decision to buy Twitch was an ultimate constructive opportunity. Since Twitch already attracts massive traffic. As per a press statement released by Amazon, Twitch enjoys above 55 million distinctive visitors every month. Likewise, the live streaming platform embraced the potential of youth- the future holders. So it will be a win-win situation for Amazon.
According to Wall Street Journal report, Twitch was responsible for appealing 2% of streaming content in the United States. And that too during rush hours. Further, to apprehend the strength of Twitch in traffic battle, it lags behind Netflix and some major platforms only.
Also, Amazon was always keen on stepping into the TV world. Amazon upholds that the TV spots would breed massive revenues in the future. As an example, it analyzed how the football matches gathered the attention of investors.
Amazon analyzed its profoundness in the TV streaming sphere as:
Introducing Amazon Prime TV
Streaming assistance device-Amazon fire TV
Getting hands-on Amazon Fire Phones
So one thing is clear that Amazon is very generous when it comes to investing. Additionally, the TV and online streaming sector is always its go-to notion.
Why did google not buy Twitch?
Google primarily offered to buy Twitch with a bidding offer of $ 1 billion. However, speculations arise that YouTube will take advantage of advanced streaming services. Both parties had never reached a situation to overcome their trust issues. YouTube-Twitch bond was the primary concern for both parties. As both deal in online video services. Subsequently, Google steps back from its offer mainly due to anti-trust apprehensions.
The Bottom Line
In a nutshell, Amazon owned twitch after offering an amount of $970 million. Twitch was the intriguing platform for Amazon mainly due to its ability to watch real-time gamers playing. Nonetheless, money was not the chief factor for Twitch. The gaming platform selects Amazon for its authentic long-term official relations and financial frameset. Moreover, the Amazon-Twitch bond is constructing productive revenues for the social video community.