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 »

YouTube and Twitch Channel Cable TV

With the upcoming launch of YouTube Gaming, YouTube will have dedicated apps for its three most popular categories of videos: music (Music Key), kids (YouTube Kids) and now video games.

While the Google-owned site has long supported discreet “channels,” those are largely a convenience for individual video creators as they look to build their own YouTube_music_keycorporate or personal brands. They were not created by YouTube with an eye to sorting the content in its vast online library by category or genre. Nor, by extension, were they created to try to segment YouTube’s vast audience by interests, tastes or demographics  the way, say, a category-specific cable TV network like Nickelodeon or CNBC seeks to do.

By creating category-specific apps, however, YouTube is clearly edging toward that model.

The launch of YouTube Gaming, of course, is also Google’s response to the rapid growth of Twitch, the live-streaming gaming site it came close to buying last year only to have Amazon snatch it away at the last minute. While Twitch’s audience of 100 million active monthly users is a small fraction of YouTube’s more than 1 billion, they’re a dedicated bunch. The average Twitch user spends 106 minutes a day on the site, according to the company, and peak concurrent usage can reach 1.5 million. Read More »