Amazon buys Twitch.tv for $970 million

Buuhan1

We all thought it was Google who bought them, but nope. This… is actually a turn for the better, but we'll have to see how Amazon handles Twitch.

Amazon.com, Inc. (NASDAQ: AMZN) today announced that it has reached an agreement to acquire Twitch Interactive, Inc., the leading live video platform for gamers. In July, more than 55 million unique visitors viewed more than 15 billion minutes of content on Twitch produced by more than 1 million broadcasters, including individual gamers, pro players, publishers, developers, media outlets, conventions and stadium-filling esports organizations.

“Broadcasting and watching gameplay is a global phenomenon and Twitch has built a platform that brings together tens of millions of people who watch billions of minutes of games each month – from The International, to breaking the world record for Mario, to gaming conferences like E3. And, amazingly, Twitch is only three years old,” said Jeff Bezos, founder and CEO of Amazon.com. “Like Twitch, we obsess over customers and like to think differently, and we look forward to learning from them and helping them move even faster to build new services for the gaming community.”

“Amazon and Twitch optimize for our customers first and are both believers in the future of gaming,” said Twitch CEO Emmett Shear. “Being part of Amazon will let us do even more for our community. We will be able to create tools and services faster than we could have independently. This change will mean great things for our community, and will let us bring Twitch to even more people around the world.”

Twitch launched in June 2011 to focus exclusively on live video for gamers. Under the terms of the agreement, which has been approved by Twitch’s shareholders, Amazon will acquire all of the outstanding shares of Twitch for approximately $970 million in cash, as adjusted for the assumption of options and other items. Subject to customary closing conditions, the acquisition is expected to close in the second half of 2014.

Foolio

So much for people accusing Google of ruining Twitch with the music recognition software stuff. I guess that evil is more universal.

Cyan D. Funk

Twitch is bad for Twitch, so it really can't get much worse.

DarthAsthma

Well at least Google doesn't expand their huge market share on everything that is the internet.

MajinArekkusu

Well this certainly is much better than google buying twitch, cause so far amazon hasn't wronged me once.^^

Buuhan1

@Foolio:

So much for people accusing Google of ruining Twitch with the music recognition software stuff. I guess that evil is more universal.

Yeah, that was what a lot of people were claiming. But it was pretty clear Twitch did it because they were looking to be bought and not having any form of expanded copyright system in place made it harder.

Wagomu

I still have no clue what logic drives the sound muting.

Now a smart thing to do would be to get radio licensing to both allow streamers to play music and perhaps to support radio podcast type things on Twitch to go with their expansion into the world of music.

Of course if this continues to be a problem, I suggest streamers start playing music that can't possibly be licensed, like amateur electronica and extremely underground black metal.

Purple Hermit

In order to avoid licensing fees, we are now switching to white noise for background music

Wagomu

@Purple:

In order to avoid licensing fees, we are now switching to white noise for background music

Days later all streams are simultaneously silenced as Merzbow's label claims ownership

Purple Hermit

Silence is now licensed to john cage

Wagomu

Billions of years in the future, the last star's flame dies out and the whole universe is enveloped in absolute silence. John Cage's lawyers take action and moments later, a new big bang follows as the result of an out of court settlement. Thus, the cosmos are reborn.

Buuhan1

It just sucks that Twitch's system works in 30 minute segments, so if you play a song for a minute prepare to be silent for the next 29. I've practically given up on a lot of channels past broadcasts as the standard is to have a splash image with music playing for the first 5 to 10 minutes to give people enough time to join in so the first half hour of broadcasts are just silent now. Granted people will quickly learn to STOP FUCKING DOING THAT but at the moment, it sucks.

Wagomu

I still just don't get what music companies actually think they're accomplishing by doing this. I can't think of one scenario in which they would lose money for having music broadcast in the background of a stream. The streamers aren't unfairly making money off the music since people show up for the streams. Nobody's gonna go and refuse to buy albums because they can get all the music they want on stream. It's not the same thing as music on youtube, where people can just listen to any song or album they want to without paying for it (which isn't as bad as the big industry folks seem to think, either, but at least they have a point in that case). If anything, I've seen people in chat checking out new bands and albums as a result of hearing music on stream.

The only problem I can think of is that it intersects with radio and they might feel it should be subject to the same laws, but as I said before, people don't come to streams primarily for the music that people sometimes play in the background.

It's all dumb. Everything's dumb. Forever.

Sakonosolo

Yeah, I think you would probably get more people finding your music if you allowed it to be used in streams. That might not guarantee a whole lot more sales but I'm sure some people might buy music they hear on streams.

Purple Hermit

Boy oh boy when I go to listen to music, personally I prefer it while people are gaming over it and potentially screaming

Buuhan1

The simple fact is, like it or not, it's owned content being used without the owners permission. It doesn't matter how it's being used.

Sakonosolo

The point is it's stupid and exists because the old men that run the record companies think anytime someone hears a song that isn't being payed for that it's money being stolen out of their pockets.

Wagomu

It's an insane notion, though, when the use of the music is of only tangential value. It's like saying that restaurants can't play music for the customers. The music isn't what's drawing people there, but it sure as hell is awkward when they cut it out.

Buuhan1

@Wagomu:

It's an insane notion, though, when the use of the music is of only tangential value. It's like saying that restaurants can't play music for the customers. The music isn't what's drawing people there, but it sure as hell is awkward when they cut it out.

Yeah, but music companies get paid for that. Musak, licensed CDs from coporate, etc. It's why you often don't hear actual radio stations going in big businesses. The point here is Twitch isn't, and isn't willing to, get coverage for music. It was fine when they were small, just like a little family owned hole-in-the-wall restaurant.

They ain't small no more.