Twitch and its appeal for Google and Microsoft

The other day, I heard about the rumoured takeover of Twitch by Google for the handsome amount of $1 billion. I have to be honest; up until that point I had never heard about Twitch. Reason enough to look into Twitch and a possible ratio for Google willing to spend such a large amount of cash on this startup:

  1. What is Twitch? – Twitch is a video streaming platform and a community for gamers. Geekwire describes Twitch as “the ESPN of the video game industry” and says Twitch is a leader in that space. Twitch has over 45 million monthly users and about 1 million members who upload videos each month. In a relatively short space of time (Twitch was launched in June 2011), Twitch has successfully created an online streaming platform for video games.
  2. Who use Twitch? – I’m not an avid video gamer myself, but browsing the Twitch website tells me that are in effect two main user roles, which are closely intertwined: game players and broadcasters. Clearly, you can be both and I’m sure that a lot of Twitch members fulfil both roles. One can play games on Twitch channels like Counter-Strike: Global Offensive or World of Tanks or one can create their own pages from which you can broadcast games. A great example of Twitch’s success in engaging its community around a game is TwitchPlaysPokemon which has had over 78,000 people playing a game that turns chat comments into controller inputs, parsing hundreds of thousands of ups, downs, and starts and translating them into in-game movements.
  3. Why is Twitch such an interesting acquisition target? – Twitch is reported to have snubbed Microsoft’s takeover offer but is rumoured to have fallen for Google. This raises the question as to what makes Twitch such an interesting takeover target? I think that the answer can be split into two main factors. Firstly, scale. Twitch has a rapidly growing and very engaged user community who all share a passion for (video) gaming. Secondly, live broadcasting. Going back to the example of TwitchPlaysPokemon, Twitch streams games that get people excited and gets them participating in real-time. This simultaneous element is something that for instance YouTube is lacking. YouTube is great for on-demand video content, but (currently) less so for live event coverage or participation. The combination of both factors (as well as a very rich vein of user generated content and data) makes Twitch an extremely interesting target indeed.

Main learning point: Recently there have been some major takeover deals in the digital industry – think Instagram, WhatsApp and Beats – but the rumoured acquisition of Twitch by Google is interesting for a number of reasons. If I have to highlight one key reason, then synergy is the main aspect that makes this potential takeover sound like a very exciting one. How will Google potentially integrate YouTube and Twitch or at least find a way to combine both platforms? Will the acquisition of Twitch help YouTube in cracking the real-time broadcast element of its offering? Lets wait and see if the deal actually gets done in the first place, but if it does then I will definitely keep an eye out for any future developments involving Google, YouTube and Twitch.

Related links for further learning:

  1. http://www.fool.com/investing/general/2014/05/28/why-youtube-buying-twitch-for-1-billion.aspx
  2. http://www.geekwire.com/2014/microsofts-xbox-shot-potential-twitch-buyer-matters/
  3. http://variety.com/2014/digital/news/youtube-to-acquire-videogame-streaming-service-twitch-for-1-billion-sources-1201185204/
  4. http://techcrunch.com/2014/05/27/tc-cribs-tours-twitch-tv-gaming-office-headquarters/
  5. http://thenextweb.com/insider/2014/05/29/twitch-now-lets-filter-counter-strike-global-offensive-game-streams-map-skill-level/
  6. http://thenextweb.com/google/2014/05/19/google-reportedly-wants-buy-video-streaming-service-twitch-1b-deal-boost-youtube/
  7. http://variety.com/2014/digital/news/why-google-wants-to-hitch-twitch-and-youtube-1201188093/
  8. http://www.theverge.com/2014/5/20/5734108/why-twitch-could-be-the-best-billion-google-ever-spends
  9. http://guardianlv.com/2014/02/twitch-live-broadcast-to-be-included-in-xbox-one/

Twitch

Windows Phone 7: Microsoft mobile goes user-led!

Can Microsoft reverse its mobile fortunes? This week I learned about the launch of the new Windows Phone 7 operating system to be implemented into mobile devices by manufacturers such as HTC and Samsung. Where Microsoft’s previous operating systems were seen as aged and not particularly user-friendly, Windows Phone 7 seems to be breaking with old habits. “A butterfly coming out of a caterpillar” was probably the best description that I came across. The consistent theme of all reviews thus far is that the new mobile operating system is much more user-friendly and intuitive than any of its (Microsoft) predecessors.

I feel that the main things that stand out from the Windows Phone 7 operating system are:

  1. A simple touchscreen – Only a few buttons and no complicated buttons.
  2. A dedicated “search” button – Search made easier and more intuitive.
  3. ‘Live tiles’ – Square blocks that provide quick and easy access to the phone’s main functions.
  4. No static icons – The icons can be easily customised e.g. to show new email messages (both corporate and webmail!) or Facebook posts.
  5. Tight integration with Microsoft Office Mobile suite – Easy access to e.g. Outlook and Word applications.

Main learning point: the iPhone might have just found itself a true competitor in Windows Phone 7. This new operating system looks promising in its simple looking user interface and integration with a range of Microsoft Office applications. It will be interesting to see whether developers will jump on the chance to create bespoke apps for Phone 7 handsets. At the moment, Windows Phone 7’s prospects are looking very bright as it seems like Microsoft got its mobile proposition right for the very first time!

Related links for further learning:

http://www.techradar.com/news/phone-and-communications/mobile-phones/hands-on-windows-phone-7-review-704463

http://www.guardian.co.uk/technology/blog/audio/2010/oct/12/stephen-fry-windows-phone-7-audio