Amazon

HN – Twitch could be a $20B company within Amazon

Amazon bought two things with Twitch: 1) A social community 2) a monetization model. The video service itself is secondary.The past several years has shown the social communities grow organically. But its hard to make users adopt one. If you build it, they probably won’t come. It’s easier for a big company to buy one up than start one from scratch. (Think Instagram versus Google Plus).

Second, Twitch is one of the few monetization models on the internet that is not pure ad based. Twitch does have ads, but streamers see more money through direct donations and monthly subscriptions. Also I am willing to bet the rate of ad blockers on Twitch is higher than the average site. Twitch has shied away from dark patterns that lock out adblocking users. I don’t see any big modals or disabled video if I run an adblocker on Twitch. This is no doubt on purpose. So Twitch has locked on an monetization model of direct payment for digital content, which is rare on the internet. And best of all, it’s completely optional.

A video streaming service alone is nothing revolutionary. There are many Twitch clones that haven’t reach near the same popularity. Its the community, and how its funded.

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