For Amazon, Live OTT Comes With A Twitch

At his Streaming Media blog, Frost & Sullivan analyst Dan Rayburn adds a new wrinkle to the ongoing debate over why Amazon kicked Apple TV and Chromecast products out of its online store. According to Rayburn’s sources, Amazon has been chatting up content owners about offering a live, over-the-top video service of some kind.

Rayburn speculates that such a plan could help explain why Amazon recently acquired the cloud-based live streaming platform provider Elemental Technologies at an unusually high valuation:

cable_TV_not1Insiders say Elemental is on a run rate to do close to $100M in 2016. So if the rumors of Amazon valuing Elemental at $500M are correct, Elemental is getting about 5x projected 2016 revenue, a rather high valuation, unless Amazon is also placing value on them for other reasons, like the ability to power their own live OTT service.

I’ll add another data point in support of the notion: Twitch, which Amazon acquired last year for close to $1 billion. As noted in a post here last week, Twitch is rolling out a new set of tools to help its broadcasters linear-ize their channels, by mixing live and on-demand content and creating playlists that turn the channel into a 24/7 experience. Read More »

More Than A Game: What TV Can Learn From Twitch

One of the enduring frustrations of would-be TV innovators, famously voiced by Steve Jobs back in 2010, has been the inability to integrate live, linear and on-demand content into a single, easy-to-navigate platform. “The problem with innovation in the TV industry is the go to market strategy,” the late Apple CEO told the AllThingsD conference that year. “The TV industry has a subsidized model that gives everyone a set top box for free. So no one wants to buy a box..The only way that’s going to change is if you tear up the set-top box, give it a new UI, and get it in front of consumers in a way they’re going to want it.”

As discussed here in previous posts, the Federal Communications Commission is currently considering a number of steps to promote greater integration, from redefining who qualifies as a multichannel video programming distributor to mandating downloadable security for set-top boxes, but none of those steps — or even all Forza-Forizon-2-Twitchof those steps together — would solve all the problems or resolve all of the commercial and technical conflicts that make seamless integration so challenging today, and in any case could be years down the road.

There is one corner of the media business. however, where the integration of live, linear and on-demand content is actually happening today: games.

Over the weekend, the hugely popular site for live-streaming game play, Twitch, announced a number of new features during its first annual TwitchCon in San Francisco, including the ability to upload videos directly to the Twitch platform. Up to now, Twitch channel owners have needed to stream content first and then incorporate the archived stream into their channel as on-demand content. Now, users will be able to upload video directly to the platform without having to stream it first. Read More »