Posts Tagged‘acquistion’

Bringing The Kappa to YouTube.

Twitch.tv started out as the bastard child of Justin.tv, a streaming website that wanted to make it easy for anyone to stream content to a wider audience. Indeed for a long time Twitch felt like something of an after thought as divesting part of an already niche site into another niche didn’t seem like a sound business maneuver. However since then Twitch has vastly outgrown its parent company becoming the default platform for content streamers around the world. The sponsorship model it has used for user’s channels has proven to be successful enough that thousands of people now make their living streaming games, giving Twitch a sustainable revenue stream. This hasn’t gone unnoticed of course and rumours are starting to circulate that Google will be looking to purchase them.

Twitch TV Logo

The agreement is reported to be $1 billion all cash deal, an amazing deal for the founders and employees of Twitch. The acquisition makes sense for Google as they’ve been struggling to get into the streaming market for a long time now with many of their attempts drawing only mild success. For the Twitch community though there doesn’t appear to be any direct benefits to speak of, especially considering that Google isn’t a company to let their acquisitions just do their own thing. Indeed if this rumour has any truth to it the way in which Google integrates Twitch into its larger platform will be the determining factor in how the brand grows or ultimately fails.

At the top of the list of concerns for Twitch streamers is the potential integration between YouTube’s ContentID system and the Twitch streams. Whilst most of the games that are popular on Twitch are readily endorsed by their creators (like League of Legends, DOTA2, World of Warcraft, etc.) most of them aren’t, something which has seen content producers and game developers butt heads multiple times over on YouTube. With the Twitch platform integrated into YouTube there’s potential for game creators to flag content they don’t want streamed something which is at odds with the current Twitch community ethos. If not handled correctly it could see much of Twitch’s value evaporate after they transition across to YouTube as arguably most of it comes from its wide community, not the technology or infrastructure powering it.

On the flip side though Twitch has been known to suffer from growing pains every time a popular event happens to grace its platform, something which Google could go a long way to fixing. Indeed that would likely be the only thing that Twitch has to gain from this: a global presence without the need to invest in costly additional infrastructure. If Google maintains Twitch as a separate, wholly owned brand then this could be of benefit to both of them as a more stable and available platform is likely to drive user numbers much quicker than Twitch has been able to do previously.

We’ll have to see if this rumour turns out to be true as whilst I wouldn’t begrudge Twitch taking the cash the question of what Google will do with them is what will determine their future. Whilst the combination of Twitch chat and YouTube comments sounds like the most unholy creation on the Internet since /b/ there is potential for both Twitch and Google to gain something from this. Whether that’s to the benefit of the community though remains to be seen.