Justin.tv to Switch.tv Migration Goes Well for Amazon

Confidence: Medium
Impact: Medium
Disposition of finding: Positive

Twitch.tv is a live video platform, which was introduced in June 2011 as a spin-off of a sister platform Justin.tv. Justin.tv was re-branded as Twitch Interactive which meant a migration and shut down in August 2014. Bated breath ensued for many, I’m sure, however in September 2014, Twitch was acquired by Amazon.com for a reported $970 million.

Since 2013, there was a steady decline of Justin.tv traffic leading up to the migration in the middle of 2014. Surprisingly, it didn’t just go well, it actually ended up being rather good for them, possibly in combination of the Amazon horsepower behind it. But traffic to twitch.tv has well more than doubled since early 2014.

Twitch represents a growing interest in streaming video online, and it makes sense in concern with Amazon prime and competing with the likes of Hulu, Google’s Youtube and so on. I wouldn’t be surprised to see more growth in this area as live events become an easier way to drive more ad revenue, subscriptions and reduced cost given that Amazon owns it’s own hosting infrastructure. It also puts them in a better position to move against Google’s Youtube, Hulu, Vimeo and other premier video hosting companies.

Obligatory legal disclaimer.