Tomahawk, WI 08/27/2014 (Basicsmedia) – Amazon.com, Inc. (NASDAQ:AMZN) paying $970 million to give game fanatics the ability to broadcast, watch and comment on other peoples virtual performance might have sounded strange to non-gamers but not to co-founder and CEO of Kiip, Brian Wong, who has given the deal his approval on Bloomberg.
Twitch is a great addition to Amazon.com, Inc. (NASDAQ:AMZN)’s user base as it boasts of over 55 million users and allows gamers worldwide to connect with each other through chat and broadcast. Bloomberg’s Corry Johnson believes that Twitch is the future of the media space compared to the likes of Netflix, Inc. (NASDAQ:NFLX) due to its expansive user base that spans the entire world. Twitch also boasts of 1-million unique broadcasters making it the biggest gaming broadcasting network.
“ I think it is an Amazing move by Amazon.com, Inc.(NASDAQ:AMZN) it validates gaming as sort of this ubiquitous sort of thing that people are spending a lot of time on, not only online, but obviously on mobile […] I think Amazon just needed a property that they could use to be able to reach more people with even more engaged video products and I think Twitch is a great platform to do that on,” said Mr. Wong.
Johnson expects Amazon.com, Inc.(NASDAQ:AMZN) to use Twitch’s user base to expand its ads business considering 60% of the gamers on the network spent almost 20 hours every week, in the month of July. Wong also believes that in the near future, people will start watching Live-games being played on Twitch just like they watch Movies as the platform has already created celebrities that are currently being followed worldwide.
The fact that Twitch has tapped with success the young generation that advertisers have always found it hard to attract with their products is set to be of great benefit to Amazon.com, Inc.(NASDAQ:AMZN) in terms of a new avenue for placing digital ads according to Johnson.
“It is happening to a demographic that is hard for advertisers to reach that is men in their 20’s late 20’s and 30’s. Those are very difficult demographics for advertisers to reach, and they are able to reach them through Twitch,” said Mr. Johnson.