Sep 022014
 

Well, this is embarrassing…  it turns out that I and the majority of the web pegging YouTube/Google as the probable buyer of Twitch.tv were perhaps a tad premature. Instead, a surprise offer from Amazon came from out of the blue, and they have been officially confirmed by Emmet Shear, CEO of Twitch, as having purchased the company for a cool $970 million . Surprise!

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This is the most recent and most obvious sign of what most feel Amazon is gearing up to do, which is take on Google and Netflix as a global information/content behemoth. Twitch, which didn’t even exist four years ago, has blown up into what has become a lucrative business streaming content from video games and the gaming scene in general. Amazon’s opportunity seemed to come about after Google hesitated on their deal out of fear of antitrust lawsuits (as YouTube fulfills a relatively similar service, albeit recorded).

So now the question will be what this means for Twitch. This is far and away Amazon’s largest purchase to date, which means they regard it as a very important part of their strategy moving forward. The fear with Google being the buyer would be they aggressively shut down anything remotely approaching copyright infringement. As with the last article, Twitch is very borderline as is with this. Streamers make a living posting live video of themselves playing games, which so far most game companies have embraced, even if it could technically be pursued in court, as it also brings great publicity (League of Legends). Furthermore, up until recently, many streamers would play music from their collection or from a separate streaming service while they played. This has more or less been shut-down with recent moves by Twitch. Whether or not this was in order to help facilitate sale is unknown, but as long as the game content remains untouched, this is a reasonable and very prudent move.

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Overall, I have to think this will be better for Twitch than if Google had purchased it. Most signs seem to point to Amazon not wanting to limit Twitch in any way, and more or less keep business as usual. However, I think in the next year we will start to see a much wider array of video content available in Twitch, especially with recorded video (as YouTube, now a direct competitor, has been the major place to store these recordings). Amazon most definitely wants to compete with Google to be the end-all be-all of content providers, and Twitch is one of the first and most important foundations to that strategy, so they will be taking extra care to continue providing the same quality of service. Google may not have had quite the same need to do so, as they already control a huge sector of the market.

So just like everyone else, we are waiting to see how this turns out, but I myself have a better feeling about the Amazon purchase than I would have with Google, and it sure seems to set up an interesting clash between two of the biggest names on the web.

 Posted by at 6:28 pm

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