Okay. So what is Twitch, and why would Google want to buy it? Twitch is a fast-growing service that lets people — mostly men — watch livestreams of other people — mostly men — playing video games.
It’s like ESPN for video games.
When Twitch started up in June 2011, it claimed five million users a month. In 2012, it was up to 20 million. By the end of last year, that number had jumped to 45 million. Broadband service provider Sandvine says Twitch now accounts for 1.35 percent of Internet traffic during peak hours in North America. That’s more than HBO Go’s 1.24 percent.
Question: Why is it that YouTube is the buyer and not Google? Where’s the jack?
The site makes money from video ads that can be targeted to certain channels or games, and from paid subscriptions to channels that remove those ads. Subscriptions generally cost about $5 per month, and Twitch says about 300,000 of its viewers are paying subscribers to at least one channel.
Television is being disrupted.