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Amazon has a $1 Billion Twitch!

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Yes Amazon has a Twitch and by that I mean they have just agreed to buy the online video game platform and community for video gamers, twitch.tv. Amazon is showing that they are serious about getting into the content game. Amazon is looking to expand it’s reach beyond e-commerce and get into the rapidly growing market of streaming services.

The price Amazon has agreed to pay for Twitch, the online video and gaming platform is $970 Million dollars with a possible $100 Million dollars more if certain performance goals are reached. Twitch has around 55 Million global users which makes the website one of the top 15 most visited websites in the world. This adds a lot of users to the ever growing content arena which Amazon is looking for growth in. Rivals Yahoo, Netflix and Youtube are all fighting for their part of the rapidly growing audience for video streaming and this helps Amazon get a major boost in this growing arena.

The video gaming industry market will reach a predicted $111 Billion dollars by 2015. Amazon’s acquisition of Twitch will give them new opportunities to target potential customers. The Twitch website accounts for about 43% of all live-video streaming traffic by volume and Twitch has also said that 58% of their users average 20 hours a week on their website. This presents a big potential for Amazon to market their products to these dedicated gamers. Is Twitch really worth $1 Billion dollars? Time will tell if Amazon can show it was a wise purchase. Till then, go take a look at their website and see what you think, Click Here!

 

 

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