Dive Brief:
- Google announced it has finalized a $1 billion dollar deal to purchase Twitch.tv, a video site popular with online gamers.
- Twitch.tv will likely work in tandem with YouTube and give Google the ability to get in on the multi-billion-dollar advertising opportunities associated with live-streaming competitive gaming.
- The gaming video site receives 400 to 500 million impressions monthly and has a 90% completion rate — way above the industry average of 50%.
Dive Insight:
If Google is going to get into the live-streaming gaming industry, Twitch.tv is the perfect place to start, given its established audience and impressive completion rates. It seems a natural progression for Google-owned YouTube to start getting involved in online gaming. Twitch.tv also benefits from the deal by receiving a nearly unlimited potential to grow through Google's reach.