Does Amazon own Twitch? (2023)

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Twitch is an American company offering live streaming to its members. It gives video game live service focusing on real-life interaction with the creator, players, and audience by broadcasting and observing escort competitions, music broadcasts, creative content, and many more. Twitch Interactive has operated as a social media platform and entertainment venue. This company was founded in 2011. You can witness music libraries via live streaming. Another way is a video on demand.

Does Amazon own Twitch?

In 2014, Amazon acquired Twitch. Before its acquisition by Amazon in 2013, it had 45 million unique spectators, the 4th largest source to hike internet traffic. The parent company was rebranded and converted into Twitch Interactive the following year. After that, it was acquired by Amazon. According to an estimate, it was sold for $970 million. Later this service was synergized with the Premium service of Amazon.

How does Twitch work?

It has been synergized with the premium service of Amazon, which means that customers have to purchase a subscription to Amazon Premium Service to utilize this service. In 2016, it acquired Curse. Curse is an operator of the online video gaming niche. This service enabled the means to share links of games so that they can be shared on stream. Programmers also receive commissions on other sales of these video games.

 Amazon Twitch Financial

It had more than 100 million spectators per month and remained the leading live video streaming in the United States. Even Twitch has advantages over YouTube Gaming.

  • There was an estimate that Twitch live streaming was watched for 6.3 billion hours in 2021. 
  • Of all live hours watched or streamed on the internet, Twitch streaming constituted 72%. It was much more than Facebook Gaming and YouTube Live.
  • An average of 2.5 million instant views are recorded on Twitch. The daily traffic at Twitch constitutes up to 31 million viewers.
  • Although Amazon does not publish Twitch statistics separately, these observed statistics suggest that Amazon gets a larger benefit from this subsidiary. 

How Amazon Makes Money From Twitch?

There are at least four known ways through which Amazon makes money through Twitch.

Subscription Fee

Amazon rebranded Twitch to Amazon Gaming. This service has equal standards and place among all other Amazon services or applications. At Twitch, a member can subscribe to individual channels. These channels are run and driven by certain hosts. Customers must pay a separate fee for channel subscriptions that come in three different ways. A channel subscription comes in three tiers $4.99, $9.99, or $24.99.The revenue earned is divided between Amazon and the operator of that certain channel. Viewers have to pay a certain fee for the membership of Twitch through the Prime membership program. This adds a great deal to Amazon’s revenue.

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In 2022, Twitch will earn almost $2 billion for Amazon, according to Nielsen estimates. Along with Twitch, a target of $1 billion is set annually for advertisement. However, the estimated amount has yet to be reached. 

Merchandising sales

A unique system introduced by Twitch is known as Loot Cave. This Loot Cave is featured to have a large variety of branded merchandise. Moreover, it has an abundance of High-quality sports items. These items are covered by Amazon now. These are sold out on Prime Day to premium members who have paid a subscription fee.

Animated bites

Twitch has introduced animated and unique emojis. These emojis are used to cheer and applaud. Viewers can spend them on their favorite games and players in real time. The channel creators also get their bonus. These bits can also be used to get extensions. 20% of that penny directly goes to extension creators and developers.

Twitch Revenue;

Although Amazon-owned Twitch for almost $970 million, it has increased revenue. Here we have mentioned Twitch’s annual revenue from 2018 to 2021 ($mm) In 2018 earned revenue of $880 million. In 2019 it earned up to $1230 million. In 2020 the revenue reported was up to $1890 million. In 2021 these numbers will rise to $2675 million.

Other Amazon Acquisition

There are a lot of companies that Amazon owns. Some services and subsidiaries of Amazon include following

  • Amazon Services LLC
  • Amazon Digital Services, Inc.
  • Amazon Web Services, Inc.
  • Amazon EU Sàrl
  • Amazon Europe Holding Technologies SCS
  • Amazon Fulfillment Services, Inc.
  • Amazon Services International, Inc.
  • Amazon Corporate LLC
  • Amazon Technologies, Inc.
  • Amazon.com Int’l Sales, Inc.
  • Amazon.com LLC
  • Amazon.com NV Investment Holdings LLC
  • Amazon.com.dedc, LLC
  • Lovefilm UK Limited
  • NV Services, Inc.
  • Amazon Web Services

Some Amazon-owned companies include

  • Audible
  • Diapers.com
  • Goodreads
  • IMDb
  • Kiva Systems (now Amazon Robotics)
  • Shopbop
  • TeachStreet
  • Twitch
  • Zappos, and
  • Zoox.

Conclusion;

Amazon has owned Twitch since 2014. Ever since it has been benefiting from the company. Video games and live streaming has expanded to a larger pace. To meet the current technological needs, Amazon has owned Twitch.

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