First revealed in August, Amazon has completed its $970 million acquisition of Twitch. This acquisition marks the second largest investment by Amazon, trailing only its acquisition of Zappos and further underscores Amazon's intention to be a dominate player in the media industry. Often times Amazon’s acquisitions are designed to fulfil a specific niche or need. LOVEFiLM provided Amazon entry into subscription VOD in Europe, Zappos was an online clothing retailer, and KIVA Systems helped Amazon further automate its order fulfilment system. Twitch is unique, and warranting of its high cost, in that it fulfils multiple needs.

• Live streaming is the next big growth area for digital video.
• Twitch has a loyal user base that can be monetized.
• Twitch will help jump start Amazon’s entry into digital advertising and close the gap with industry leader Google.
• Enhance Amazon Prime and help grow Prime membership.
• See the game, buy the game.
• Amazon wants to be a player in the video game industry.

For more detail on the reasons behind Amazon’s acquisition of Twitch and its implications see Strategy Analytics Insight Amazon has Big Aspirations with Twitch Acquisition