Magazine article Variety

Behind Amazon's Surprising Buy of Twitch Game Site

Magazine article Variety

Behind Amazon's Surprising Buy of Twitch Game Site

Article excerpt

While It was easy to see why Google was courting Twitch - in a bid to pair the videogame streaming site with YouTbbe - a tie-up between Amazon and Twitch seems less intuitive. But there are some sound reasons why the giant e-tailer is spending $970 million in cash to acquire the company, marcgraser

1

ONLINE ADVERTISING

No longer relying solely on sales of products, Amazon is selling pre-roll and other ads that play in front of TV shows and short videos on Amazon Prime (to compete with YouTube). It earned $750 million from such ads in 2013, and should top $1 billion this year. Twitch's massive viewership - and predominately young male demo - should only make Amazon more attractive to marketers.

2

HARDWARE

Amazon needs Twitch's programming to help fill a growing number of platforms and screens it's manufacturing and selling, like Kindle Fire tablets, Fire TV and Fire Phone, designed as entertainment devices. …

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