Amazon.com, Inc. (NASDAQ:AMZN)‘s entertainment ambitions have resulted it to come up with one of the biggest acquisition in the history of Amazon.
It has invested $970 Million in Twitch Interactive Inc.; a video-game service. This has come in handy with its strategy to enhance its entertainment services by making video games as the main point of focus. Twitch provides an online platform that can host tens of millions of monthly subscribers. Here they discuss, play and watch billions of video games at their own convenience.
The market’s reaction
Amazon’s acquisition of Twitch took the market by surprise as it was viewed as a project of Alphabet Inc (NASDAQ:GOOGL). This could be translated as a mission to overtake Google completely. The acquisition was preceded by the invention of ‘Amazon Sponsored Links,’ which is an advertising venture that could switch Google Ads with Amazon Sponsored Links. The combination of Amazon Sponsored Links and Twitch could translate to a huge revenue generator for Amazon. This move leaves Amazon as the dominant in the market.
Amazon entertainment platform
Twitch is not the only Amazon’s entertainment focus. It coordinates a games studio in Seattle. It is also encouraging software developers to come up with new video games names for its Fire TV set-top boxes, Kindle Fire and Fire Phone tablets. Amazon has invested in other areas including TV shows production. It has spent about $100 million on production of TV shows, a music-streaming service and a book subscription. These run through Amazon’s instant video service.
How does Twitch complement Amazon’s entertainment platform?
Twitch allows users to acquire games directly on its platform. It has enabled software that allows subscribers to download and play games directly on the platform. It also has customer’s incentives such as discounts on new releases and free release daily deliveries. This encourages frequent purchasing so as not to miss out on the discounts.
A combination of Twitch and Amazon Sponsored Links compliments Amazon’s Fire smartphone, Set-top Boxes and Tablet devices. They support the gaming services. Twitch adds to the complement by enhancing the broadcast and game viewing.
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