Amazon's Big Bet on Twitch: Is It a Smart Play?

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Aug. 26 (Bloomberg) -- KIIP CEO Brian Wong and Bloomberg's Cory Johnson discuss Amazon's $970 million purchase of Twitch with Matt Miller on "Street Smart." (Source: Bloomberg)

Half of cory's age.

Let me ask you.

With twitch, do you watch it?

Yes, it is an amazing move.

It validates gaming as this ubiquitous thing that people are spending a lot of time on, not only online but obviously on mobile, and it is growing in leaps and bounds.

Lots of money is being poured in, and amazon is getting a property that they can use to be a will to reach more people with more engaged video products, which i think is a good platform to do that on.

Cory, have you been spending part of your day watching videos on twitch?

On the day after the emmys, when there is so much focus on, geewhiz, no surprise that cable tv exists and that broadcast did not get a lot of rewards, and with hbo, and that "breaking bad" is a niche product, look.

Twitch is the future of media.

They had 55 million active users in the month of july averaging 4.5 hours per user, but about 60% of them were on 20 hours every single week.

Cable would kill for that.

Broadcast would kill for that.

It is a tremendous opportunity for them not just to sell the program, which they are doing, but also to sell ads.

Brian, do you see a future where people en masse i going to want to sit and watch a video game the way they want to sit and watch a movie?

I think it is more compared to watching sports live.

There are a lot of people that say, oh my gosh, you would sit and watch hours of "star craft" live?

It is almost unexplainable, but it is like watching sports.

You see the planes -- plays happen.

And it is literally a new category of star that is emerging from this.

They are a celebrity.

There are guys that walk through e3 and get malled because they are from twitch.

People will be watching.

New, it is already happening.

The numbers are already there.

It is not something that society is broadly participating in, and i would say also it is not something that mainstream media has caught onto, but it is happening, and it is happening in a demographic that is hard for advertisers to reach, men in their 20's and 30's. that is a very difficult demographic for advertisers to reach, and they are able to reach them through twitch.

I think "madden 3" comes out today.

And you can see one of the bigger channels on twitch, people are watching people play

This text has been automatically generated. It may not be 100% accurate.


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