Why Google’s Youtube is Pursuing Twitch.tv for $1 Billion

In a world where media has, arguably, the greatest influence on today’s young society, it is no surprise to see the recent explosion in popularity of video game broadcasting.

Video games have been around since decades ago but only recently has video game broadcasting become a hot topic. While our parents and ourselves have fond memories of sitting in front of the family TV watching our favorite past-times, this generation substitutes the TV with their computer monitors. The average gamer these days is someone who plays games and watches others play on mediums such as Twitch.tv. With that said, Twitch.tv has become such a dominant player within the video game industry boasting staggering numbers including 43 million viewers monthly and an average viewer time of an hour and a half a day. Therefore, it is no surprise that Google’s Youtube is looking to acquire Twitch.tv for a reported $1 Billion.

Twitch.tv

Twitch.tv is a hot commodity as it boasts over 43 million unique viewers a month. 1 million users broadcast themselves playing games every month and some of the more popular users do video game broadcasting as their main source of income and full-time job. The way they sustain themselves through broadcasting is through running advertisements periodically. Although no viewer likes to watch advertisements, they accept that they are being provided a service and, much like on TV, must endure an advertisement here or there. This may not even be the case for some viewers because the advertisements shown are carefully selected to be relevant towards the gamer base, usually showing clips of new games and trailers. With the amount of traffic Twitch.tv is receiving, possibilities are endless to expand which is the reason why Google’s Youtube is looking to acquire it for such a large sum of money; and it makes sense to do so.

Gaming Today

With the popularity of games such as League of Legends, Dota 2, and Hearthstone exploding to staggering numbers today, Twitch.tv and Major League Gaming saw the most benefit. The upcoming Invitational Dota2 Championship’s prize pool is a ridiculous $9.3 million and is still growing as more and more people register to view this event. With prize-money reaching the millions of dollars, it is no wonder to see the exponential rise of Major League Gaming or MLG and professional gamers/sponsors. We will be covering more on the Invitational Dota 2 Championship and their prize pool in a future date so make sure to check back often! Screen Shot 2014-06-11 at 5.03.52 PM

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