Amazon and Twitch or Youtube and Twitch?

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iPwnz

Brutally Honest
Keymaster
"Why it makes sense for Amazon to buy Twitch"

Today came the surprising news, first reported by The Information and then confirmed by The Wall Street Journal, that Amazon had outbid Google's $1 billion offer for Twitch. At first glance this marriage doesn't make a lot of sense. Amazon isn't well known as a gaming service and its video offerings are principally from film and television studios, not user-generated content. But when you look at where these two companies are trying to go, not where they currently sit, the combination of Amazon and Twitch could be genius.

Increasingly, Twitch was also running into licensing issues as it grew in size. In recent weeks it's made changes to the way it handles in-game music , muting a lot of copyrighted background tracks that it doesn't have agreements in place to cover for archived video. YouTube has dealt with this issue a lot, and certainly seemed like the perfect partner to ensure a broad licensing deal. Amazon doesn't have the same experience dealing with numerous copyright claims against user generated content, but it does have the deep pocketbooks and relationships in place with the big record labels who appear on its streaming music service.


http://www.theverge.com/2014/8/25/6066509/why-it-makes-sense-for-amazon-to-buy-twitch
 
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