Are you interested in investing in Twitch stock? If you are a gamer, then Twitch is likely one of your favorite game streaming websites. It’s the place where gamers can watch and live stream their game play to a community who appreciates them for who they are.
Table of Contents
Let’s dive into what Twitch is and what investors need to know about this popular website!
What Is Twitch?
Twitch is an online game streaming platform that allows gamers to watch and live stream their gaming adventures. It’s a site where people can come together and share in others’ passion for games, all while talking with one another about the game they are playing or watching Twitch streamers play it.
Although this was the main focus of the site for a long time, Twitch has expanded to broadcasting other types of content on their platform. This includes things like music, cooking, and creative content. Viewers can subscribe to channels on Twitch, which is how they get notified when new content has been uploaded. Twitch has grown to include live streams of events such as eSports tournaments and music concerts.
The website houses the chat room, where both streamers and viewers can participate in conversations. Some streamers interact with viewers while others simply play games on Twitch.
Twitch was founded in 2011 by Justin Kan and Emmett Shear to create a website that is dedicated to video games. They wanted it to be similar to television for gamers to watch live gameplay online while talking about what’s happening in-game, which has made Twitch one of the most popular websites out there! Justin Kan is a tech innovator and investor who has been involved in start-ups and venture capital. Twitch was a continuation of Justin.TV, his previous endeavor. Justin.TV was an online company in which Kan broadcasts live 24/7 videos of himself on a webcam attached to his head.
Justin’s lifecasting lasted a couple of months, after which the company focused on live video streaming. Twitch was one of the first companies to popularize live video streaming and soon became a go-to source for gamers who wanted to share their strategies.
Twitch quickly became one of the most popular game streaming websites online by 2012 because of its live broadcasting of video game content. This was because it had a lot to offer that YouTube did not, such as chat and interactive features, which made Twitch very successful for gamers.
In 2014, Amazon acquired Twitch Interactive for $970 million and Justin.TV was shut down the same month.
Is Twitch like YouTube?
Twitch and YouTube serve two very different purposes. Twitch is a platform more focused on gaming as it was initially created by gamers, while YouTube has a wider variety of content from all types of creators such as musicians, artists, comedians, etc. Twitch streamers can use the platform to connect with their audience, and they can also monetize their channels by integrating ads from brands. You can become a Twitch Affiliate or Partner by being a popular streamer on the site.
Twitch Affiliate: If you want to become a Twitch affiliate, you will need to stream regularly. It’s not just about the number of followers but also having quality content on your channel that caters to viewers’ interests. To qualify as an affiliate, you need to stream for at least 500 total minutes in the last 30 days, have at least seven unique broadcast days in the last 30 days, have an average of 3 concurrent viewers or more over the last 30 days, and have a follower count of at least 50.
Through this platform, you’ll be able to earn Bits that you can then exchange for money. One bit is the equivalent of $0.01, so it’s possible to make more by streaming a lot. Twitch affiliates can ask for donations, promote games and products, and receive payments based on the number of their subscribers.
Twitch Partner: To become a Twitch partner, you need to stream for 25 hours in the last 30 days, stream for 12 unique days in the last 30 days and reach 75 average viewers in the last 30 days. Twitch Partners get monthly subscriptions, verified channels, and private chatrooms only available to viewers who subscribe.
How does Twitch make money?
The bulk of Twitch’s revenue comes from subscriptions, though their streaming service earns money by selling tokens called Bits and sponsored videos. They also generate funds from individual donations and through the sale of merchandise or premium subscriptions.
Twitch has the following subscription fees for each of its tiers.
- Tier 1 – $4.99
- Tier 2 – $9.99
- Tier 3 – $24.99
Users of Twitch Prime get exclusive emotes for subscribing to a channel and access to streams without advertisements. Anyone can watch a live Twitch stream, and only subscribers to the channels get some of the additional privileges. Subscription revenue is used to support streamers.
Is Twitch a Public Company?
Twitch is not publicly-traded and therefore you can’t buy Twitch stocks. Amazon is the next best thing if you want to buy Twitch stocks because they are the company that bought it and owns them now.
Streaming video games on the internet will continue to grow. Twitch is currently leading the pack. It has a large base of online gamers and draws in viewers from all over the world who want to watch their favorite streamers play games live as they commentate on what’s happening on-screen.”
Twitch is not the only platform for streaming video games. However, it is the most popular. The Twitch website and app are free to use, but several subscriptions offer additional features such as an ad-free experience that also removes ads in chat. Twitch has quickly become one of the top video streaming websites on the internet, with over 100 million monthly viewers. Let’s look at some of the competitor companies
YouTube is the second-largest search engine in the world. It has over 2 billion monthly logged-in users, and over one billion hours of YouTube are watched daily. YouTube has been around for over 15 years, and YouTube content creators rely primarily on ad revenue and payments based on the number of views.
YouTube is also a video streaming website. People can post videos of themselves playing video games on YouTube, but they are not interactive like Twitch because there isn’t an audience to interact with while watching. YouTube has dominated the video streaming market for a long time, but Twitch has grown and surpassed YouTube as the second most popular website.
Facebook has recently released its own version of live streaming called Facebook Live, which competes with both YouTube and Twitch in the video streaming market. Facebook Live is free to use, and it’s currently available for both mobile devices and desktops.
Discord is a voice and text chat app that has been around since 2015. It’s popular among gamers because it can be used for chatting while playing with friends, finding new games to play, or people to join their game.
Discord also offers video streaming services similar to Twitch but don’t have the same level of interactivity as someone watching an interactive Twitch stream. It is not as popular as Twitch or YouTube, but Discord has been growing in popularity. Microsoft was interested in buying Discord, but they have recently ended discussions to buy Discord.
Netflix recently announced that they would be streaming games initially on mobile devices. This is a new move for Netflix who is more commonly known as a video streaming service. However, it remains to be seen how they will compete with Twitch.
Related: Best value investing books
The future of Twitch
Twitch has been able to maintain its lead on the video streaming market because of its interactive nature. The ability for viewers to watch streams live with streamers commenting all while playing games is a unique experience that hasn’t existed until now.
Twitch also does well because they are free and already have over 100 million monthly users, making them a strong contender for the future of video streaming. With their large base and interactive nature, it’s hard to imagine that Twitch will lose ground in the future.
As they continue to grow, they’ll only get better at what they do, which could make them a lot more popular than products from other companies such as YouTube or Facebook Live because those platforms are not interactive.
Amazon has packaged Twitch with Amazon Prime, and the two together have given Twitch a considerable boost. It’s hard to tell how YouTube or Facebook Live might compete when they are both free, but it is easy to see that there will be more competition in the future for video streaming sites like Twitch.
The company has come a long way from its beginnings in 2011 when it had less than two million global subscribers. Currently, it provides service for over 200 million people.
Can you buy Twitch stock?
No, unfortunately, you cannot buy Twitch stock as Twitch is owned by Amazon, which acquired it in 2014. However, if you want to invest in Twitch, then you can buy shares in Amazon. The Twitch stock price is the stock price of Amazon. In addition to investing in Twitch stocks by buying Amazon stocks, if you’re interested in the stock market game, investing in companies such as Netflix, Facebook, Google, and Apple will make you real money in the long term.
Related: Best Investment Apps
Although you cannot buy Twitch stock, it is one of the top video streaming sites in popularity and interactivity. It will be interesting to see how they rank against other competitors, such as Facebook or Netflix, who are just starting out in the live video streaming market.
As more companies get into this market, competition will increase and Twitch will face more challenges than ever before. It remains to be seen if Twitch can maintain its success and dominance in the market long-term.