Pavel Mikhasenok

ITS 380

CH10 Projects: Question 5

 

Twitch is the largest social network for gamers in the world. Amazon bough Twitch in 2014 for almost $1 billion. Most of the revenue comes from advertisement and subscriptions. The Twitch Prime subscription costs $4.99/mo which gives the subscriber the ability to contact the streamer during the stream. Also, subscribers purchase Bits, Twitch’s own currency, to cheer the streamers and Twitch gets a small cut from those tips. Amazon Prime users can access Twitch for free, which attracts more people to the platform.

This purchase was definitely a success for Amazon. Four years after the acquisition, Twitch became worth almost $4 billion. It is a small fraction of what Amazon makes but adds extra cash but limits the competitors. In 2018, more people watch streamed gaming content than HBO, Netflix, Hulu combined. Famous gamers use Twitch to stream themselves and attract more people to watch them live. Some streamers make thousands of dollars from tips while showcasing their skills live. Game developers also benefit from that because it is a way of advertising their game, therefore attracting more users

 

Sources:

https://www.investopedia.com/investing/how-does-twitch-amazons-video-game-streaming-platform-make-money/