Why Will Google Buy Twitch?
Who would have thought that a network that enables gamers to watch other gamers play in a live stream would become a potential target for Google’s M&A guys? Who would have thought that e-sports would reach the level of popularity and professionalism it has reached? Who would have thought that the gaming industry would put the music and movie industry to shame? Face it, gaming is for real and so are the revenues generated in and around gaming.
So now Twitch is desirable to Youtube/Google, because people like to watch others play, to learn how to play or just to be entertained. Many people (45 Mn monthly users, male 18-29, avg. view time 106min). Twitch is integrated into xBoxOne and PS4. What better place to target a gaming audience with games-related ads?
One factor seems more interesting than ad revenue: the social aspect. You listen to your favorite gamer commenting his progress in a game. As Forrester Research analyst James McQuivey puts it: “The trick will be finding those genres where the match between interested viewer, obsession for the content and passion for connecting with others socially all line up as elegantly as they do for gamers.” Who is to say that the Twitch model won’t work for broadcast TV content?
Rumour has it that Twitch is priced at $1 Bn in cash.