Amazon-owned Twitch (NASDAQ: AMZN) is a streaming site that lets gamers stream their playthrough's live online for anyone to watch. While Twitch competes against similar Google (NASDAQ: GOOGL) and Facebook (NASDAQ: FB) services, its main competitor was Microsoft's (NASDAQ: MSFT) Mixer, but the site shut down in June in the hopes its users would flock to Facebook or Google's sites, but that's not what happened.
Twitch now controls 91% of all the live video game streaming market in terms of hours streamed. When Microsoft shut down Mixer, most if not all of its users went to Twitch in an unintended boost to the streaming site. This only strengthens Amazon's already firm grip on the game-streaming market, and every other market to boot. It makes its money through advertising and user's paying for subscriptions to other streamer's channels.
While Amazon doesn't disclose total Twitch revenue, the mega-corporation did purchase Twitch for $842 million in 2014, leaving it clear that the site is profitable. On top of this mass switch to Twitch, popular 'Fortnite' streamer Tyler "Ninja" Blevins announced he would be switching over to Twitch from Mixer, bringing his 16 million followers with him.
While Ninja brought a little more fame to Twitch, there has also been a steady stream of users flocking back to Google's dog in this fight: Youtube. The pandemic makes it easy for users to stream more than ever, with a 17% increase in streaming and viewers compared to January 2019. While Twitch saw the biggest jump in January, Youtube gaming saw the largest year-to-year increase, jumping from 287 million hours in 2019, to 358 million hours in 2020. Because of this, Youtube has also claimed its working on a livestreaming function on its site, which would only strengthen its numbers.
Facebook gaming is now sitting near the bottom of the pack of these intense game streaming sites. While it boasts many of the same perks, Youtube has the test of time on its side and a huge following to keep their numbers up, and Twitch sits supreme thanks to its massive following and subscriptions.