This story originally appeared on Best Stocks

Who is Twitch?

Twitch is an interactive live streaming video platform for video gamers. Twitch was created by Justin Kan and Emmett Shear in 2007The company has become one of the fastest-growing ones, especially after Amazon bought them in 2014 for $970 millionThey are now worth around $1 billion. 

Kan and Shear founded their company after graduating from the University of California at Berkeley with degrees in computer science, business administration, and related fieldsTwitch users can post comments about gaming or watch other people play games live on their channels.

In the past decade, Twitch has become one of the most popular websites on the internetTwitch users have streamed over 2.2 billion minutes of video games to date, and they have over 1 million monthly broadcastersWith such high engagement numbers, Twitch is a growing force in the media industry that can’t be ignored.

On Twitch, users can watch or participate in gaming-related content, such as watching other gamers play single-player games, talk about something specific about a game, or even broadcast themselves playing a console gameIn this article, I will be talking about how Twitch has been successful over the years and what sets it apart from other popular online streaming sites.

Twitch business model

Twitch is a live streaming video platform that focuses primarily on video gamesVideo is both streamed and recorded and then uploaded to the website for viewingVideo content on Twitch typically falls into one of two categories: live streams, real-time broadcasts of gameplay from a player’s computer screen, or prerecorded videosTwitch is now the 4th most popular website in the United States, with 15 million monthly users. 

The platform focuses on the idea of shared playing experiences with broadcasters and their audiencesFor example, broadcasters can stream live or upload a recorded video of themselves playing gamesOn the other hand, the viewers can communicate via text messages with the broadcaster (and each other) and donate to them.

There are two ways that Twitch makes money: advertising and subscription feesAdvertisers include various gaming companies, game portals, game developers, and moreThey want to reach people who are passionate about gaming, which is exactly what Twitch providesTwitch provides several options for paying these fees, including PayPal and Amazon Payments.

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Can you buy Twitch stock?

You can’t buy Twitch stock since the company is not public-tradedHowever, Twitch’s goal before the Amazon acquisition was to go publicAs the company CEO, Emmet Shear, said in a statement: “This filing will enable us to become a publicly-traded company and provide liquidity to shareholders like our employees and investors.” 

After the acquisition, though, it hasn’t been clear whether Twitch will ever go IPO since Amazon can count on its cash flow to finance Twitch’s operations.

The CEO of Twitch, Emmett Shear, has said in an interview with GamesIndustry International that their “focus is on building a sustainable business.” He also mentioned at the Code Conference in 2016 that “our focus is growing our core audience and being more successful with less reliance on third-party advertisers.” 

So, despite what you may have heard about the company’s plans to go public, there are currently no signs of an imminent IPO for the live streaming platform.

The live-stream market

The live-steam boom in 2020

Live streaming is a booming industry, with 1.1 billion hours watched in 2020This is double the amount of time streamed in 2019, and it shows no signs of slowing downPeople watch live videos more than any other form of content online, including blogs and social media postsThere are many reasons for this boom in popularityFrom the ability to interact with brands to the possibility of winning prizes or special access, live streaming offers something that other forms of content cannot provideFor these reasons, live streaming has become a trend and an essential part of many people’s lives.

Live streaming is an effective way to connect with your audience when it comes to marketing your brandLive-streaming has grown immensely over the last yearThat’s because of its ability to create a personal connection with audiences that can’t be replicated via text or social media postsWhen you share your thoughts and ideas on live video, your followers feel like they are right there with youIn addition,

The “democratization” of live streaming

Live streaming is a way to broadcast directly from the sourceIt’s not just for musicians and celebrities anymore, as more and more brands are starting to use live streaming as a marketing tool. 

Brands have been catching on to the power of live streamingAs audiences demand more authenticity, brands are turning to live video for real-time content that viewers craveLive video offers an experience that other social media cannot provideIt’s interactive, visceral, and rawWith live streaming, brands can connect one-on-one with their audienceIt’s also an excellent way for people to feel like they’re part of the experienceWith live streaming, there are no filters, no tricks, and no editsYou get what you seeIt’s raw and authentic. 

Live streaming has been on the rise over the last few years, and now more than ever before, it’s being used as a powerful marketing tool by brands around the world. 

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3 Alternatives to Twitch stock

Vimeo Inc (NASDAQ: VMEO)

Vimeo is a video hosting service that has been around for over ten yearsVimeo’s mission is to help people make great videosIt offers many features, including high-quality video uploads, video encoding to make your videos look good on any screen size, and easy sharingIt also has a robust set of tools for creators to help them grow their audiences on social media, build communities around their content, and create videos with collaborators.

Vimeo is a video hosting companyVimeo was founded in 2004 by Jake Lodwick and Zach Klein and has been a popular alternative to YouTube since about 2007It provides a user-friendly interface for uploading, editing, encoding, and sharing videos online.

The platform offers better quality video streams at a higher resolution than YouTube doesVideos are generally of better quality because they are uploaded in high-definition (SD) or lossless (HD) formatViewers like the simple interface because it is easy to upload, view, and share videos on Vimeo.

Video is now the most consumed content type on Facebook, Twitter, and YouTubeMore than 84% of marketers are utilizing videos in their social media marketing strategy.

Roku (NASDAQ: ROKU)

Roku is a streaming platform that allows you to watch TV and movies and listen to music and sportsThe company specializes in making streaming devices used to watch TV channels, movies, and home mediaThe company has a lineup of different models of players, each with varying levels of functionality and qualitySome models can stream in 4K UHD or offer enhanced WiFi connectivityWhich model you choose depends on your personal preferences and needs.

It has a remote control for easy navigation, so you can find something new to watch almost any time of the day. Roku also offers channels like Netflix, Hulu+, or HBO that allow you to stream content on your TV without an additional deviceIn addition, Roku is easy to useAll you need is a remote and access to WiFi, and you’re ready to goPlus, the platform offers over 500,000 movies and TV episodes from channels like Netflix, HBO NOW, SHOWTIME ANYTIME, CBS All Access, EPIX PLAY, and many more.

Roku entered the market in 2008 with the release of their first product – an HDMI streaming device for high-definition televisions to quality video from Internet servicesThe company started with four employees in a small office in CaliforniaThey now have offices all over the world and more than 1,000 employees.

Netflix (NASDAQ: NFLX)

Netflix is a US-based provider of on-demand internet streaming mediaIt was founded in 1997 and has since become one of the world’s most extensive paid video services, with over 130 million paid memberships in 190 different countries.

Netflix offers almost 20,000 hours of content for instant viewing by computer or television, providing everything that one would need to keep entertained for months at a timeNetflix has also created original programming that has earned various accolades, including Emmy Awards and nominations.

Netflix’s library includes around 100,000 hours of programming and has more than 40 million subscribers in 190 countriesNetflix is available for your laptop or mobile device, as well as your home TV and game consoleNetflix is a subscription-based streaming service that offers an unlimited amount of TV shows and movies for one low monthly price.

The company has been around since 1997 but only started producing its own content in 2013With their ever-expanding library of original content like House of Cards and Stranger Things, Netflix has become a force to reckon with in the entertainment industryNetflix has also made waves by bringing back the canceled cult show Arrested Development and airing all episodes at once.

Netflix also offers a wide range of programs for you to binge-watch at your leisureWith so many options, it’s hard to know which ones are worth watching.