Does Amazon Own Twitch?

Twitch is a leading live video streaming service for game and game viewers. It made its entry in the year 2011 and soon became the most popular platform. This attracted the titans like Google, Yahoo, and Amazon but which company actually acquired Twitch is a blazing question. Does Amazon own Twitch? Or Is it acquired by Google?

Does Amazon Own Twitch

Let’s find out who owns Twitch by first understanding what is Twitch, whether Twitch is profitable or not, and what is the net worth of Twitch.


What Is Twitch?

Twitch is an American live-streaming platform that enables the live-streaming of video games. It allows players to broadcast their esports competitions and also offers music broadcasts, creative content, and ‘in-real-life’ streams.


The Evolution Of Twitch

The Evolution Of Twitch

1. Origin

The two Yale graduates, Justin Ken, and Emmett Shear, launched a site named Justin.tv and divided it into various categories. Soon the gaming category on the site became popular and grew rapidly.

The company decided to spin off the gaming content from the site and named it TwitchTv. It was officially launched in June 2011 and attracted 35 million unique visitors in a month.

2. Growth And Acquisition

Soon, the platform became more popular than its general counterpart, and in October 2013, it attracted 45 million viewers and by February 2014, it became the fourth-largest source of peak internet traffic in the USA.

This led to the rebranding of the parent company as Twitch Interactive and the shutdown of Justin.tv. The same month, the company was acquired by Amazon for US$970 million.

3. Integration With Amazon

As a part of Amazon, Twitch integrated with Amazon Prime, leveraging its existing users to further expand their reach. As of 2023, Twitch has become a multi-dollar company, generating a significant amount of revenue.


Who Runs Twitch?

After Amazon acquired Twitch, Emmett Shear continued as the Chief Executive Officer and was later joined by Sara Clemens. Sara was replaced by Kevin Lin.

As of 2023, Emmett Shear is resigning from his role as CEO of Twitch. Shear will be replaced by the President Of Twitch, Dan Clancy.

Shear wrote, “With the arrival of my son, the time has come for me to focus my energies on building that tiny little startup family, and I’m ready to dedicate my energies there. Twitch will always remain part of my extended family, a community where I grew in so many ways alongside Twitch itself.”


What Is The Net Worth Of Twitch?

According to Needham & Company analysts, currently, the net worth of Amazon’s Twitch is around $45 billion or 4% of the tech giant’s total market cap.

Laura Martin, an analyst from Needham & Company, also shared the media assets of Amazon, which is about $500 billion. It’s a collective media asset that includes Prime Video, Prime Music, and Twitch.


How Amazon Changed Twitch?

Twitch was reported to be acquired by Google for $1 billion, but the deal was never officially confirmed. The company was also reported to be acquired by Yahoo for $970 million dollars, but Amazon swooped in and cracked the deal.

Since the acquisition, Twitch has experienced a steady growth and has acquired several entities namely Curse LLC, ClipMine, and Internet Games Database.

Along with the growth of Twitch, came scrutiny. Twitch has increasingly issued DMCA ‘strikes’ and bans to streamers for violating the DMCA rules in compliance with the United States government’s complex copyright laws, in particular, the 1998 Digital Millennium Copyright Act (DMCA).

In addition to the scrutiny, Amazon and Twitch also launched Twitch Prime, that was remained as Prime Gaming in 2016. This allows Amazon Prime users to subscribe to a single channel for free each month.

It also includes watching streams without ad interruptions, using channel emotes on the platform, and many more.


How Amazon Twitch Makes Money?

How Amazon Twitch Makes Money

Twitch Interactive makes money in 4 ways

  1. Subscription Fees
  2. Advertising Revenue
  3. Merchandise Sales and
  4. Twitch Bits

1. Twitch Subscriptions

Twitch subscriptions are a way of supporting your favorite streamers. You can’t subscribe to every channel, but only to those who are Affliliates or Partners.

The subscription grants you perks like emojis and exclusive streams. The minimum subscription cost on Twitch is $4.99/ month. There are also additional tiers that cost $9.99/month and $24.99/month.

While the subscriptions are monthly, you can also opt for a lock-in for a longer period of time and subscribe for three to six months.

2. Twitch Advertising Revenue

Twitch allows its streamers to play ads during their streams and receive payments from brands to use or feature their products or services.

The parent company Amazon earned a total net sales of $386 billion in 2020, while its subsidiary Twitch bought in $2 billion of revenue from all sources in the same year.

3. Merchandise Sales

Twitch has a ‘Loot Cave‘ that features a wide variety of sportswear and branded merchandise.

To create your online merch- Create an online store, design your products, and link them to your Twitch channel and streams. Then send subscribers directly to your virtual shelves.

You can either start out at Amazon.com or go directly to New Amazon Account creation here. For now, Amazon.com is the only place you’ll be able to get Twitch merchandise online.

4. Twitch Bits

The bits are emojis that users spend to support their favorite streamers and reward them with real money.

These are digital content that was created to build social engagement. The bits can be purchased in batches starting at $1.40 per 100 bits.


What Kinds Of Games People Stream On Twitch?

What Kinds Of Games People Stream On Twitch

Twitch is a platform that allows people to stream competitive games and standard games, too. The most popular games on Twitch are competitive, like League of Legends, Dota 2, Hearthstone: Heroes of Warcraft, and Counterstrike: Global Offensive.

Some broadcasters also participate in speed-running in which they try the classic title games like Super Mario or The Legend Of Zelda and try to clear the levels as quickly as possible.

The top two competitive games also hold tournaments with million-dollar prizes. This gives a natural place for many players to flex their skills.

Besides these competitive games, people also stream games like World Of Witchcraft, Guild Wars 2, FIFA 14, and many others.


Conclusion

Twitch is a live-streaming platform which has gained popularity since 2011. It has experienced steady growth after the acquisition of Amazon.

Despite being well-known in the gaming industry, Twitch had it’s own problems that led it to be acquired by the Amazon.

We hope this guide answered ‘Does Amazon own Twitch’ and many other million-dollar questions.


FAQs

How much does Twitch pays?

Small Twitch streamers can earn anywhere between $20- $1500 per month, depending on the number of viewers they have. If you have 5-10 viewers, then you can expect to earn $50-$200 a month.

Can you buy the stocks of Twitch?

Twitch is not a publicly traded company, so you cannot buy the stocks of Twitch. However, you can see the stocks of its parent company, Amazon.

How many employees does Twitch have?

Twitch currently has 1,146 employees.

Where is the headquarters of Twitch?

The headquarters of Twitch is located in 350 Bush Street, San Francisco.

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