Twitch (service)
In June 2011, a new website called TwitchTV launched in public beta as a dedicated spin-off of the general-interest streaming platform Justin.tv. Co-founders Justin Kan and Emmett Shear had started Justin.tv in 2007 as recent Yale graduates, but the gaming category grew especially fast to become the most popular content on the site. By February 2014, Twitch was considered the fourth-largest source of peak Internet traffic in the United States, trailing only Netflix, Google, and Apple. The company headquarters sat in San Francisco's Financial District with about 80 employees in June 2013, increasing to 100 by December 2013. Investors during three rounds of fund raising leading up to the end of 2013 included Draper Associates, Bessemer Venture Partners and Thrive Capital. In late 2013, particularly due to increasing viewership, Twitch had issues with lag and low frame rates in Europe. Twitch has subsequently added new servers in the region to address these problems.
On the 25th of August 2014, Amazon acquired Twitch Interactive for $970 million in an all-cash deal. Sources reported that the rumored Google deal had fallen through and allowed Amazon to make the bid, with Forbes reporting that Google had backed out of the deal due to potential antitrust concerns surrounding it and its existing ownership of YouTube. The acquisition closed on the 25th of September 2014. Take-Two Interactive, which owned a 2% stake at the time of the acquisition, made a windfall of $22 million. Under Amazon, Shear continued as chief executive officer of Twitch Interactive, with Sara Clemens added to the executive team as chief operating officer in January 2018. Shear touted the Amazon Web Services platform as an attractive aspect of the deal, and that Amazon had built relationships with the big players in media, which could be used to the service's advantage, particularly in the realm of content licensing. On the 9th of December 2014, Twitch announced it had acquired GoodGame Agency, an organization that owns the esports teams Evil Geniuses and Alliance. In March 2015, Twitch reset all user passwords and disabled all connections to external Twitter and YouTube accounts after the service reported that someone had gained unauthorized access to the user information of some Twitch users.
Twitch has also made expansions into non-gaming content; such as in July 2013, the site streamed a performance of 'Fester's Feast' from San Diego Comic-Con, and on the 30th of July 2014, electronic dance music act Steve Aoki broadcast a live performance from a nightclub in Ibiza. In January 2015, Twitch introduced an official category for music streams, such as radio shows and music production activities, and in March 2015, announced that it would become the new official live-streaming partner of the Ultra Music Festival, an electronic music festival in Miami. On the 28th of October 2015, Twitch launched a second non-gaming category, Creative, which is intended for streams showcasing the creation of artistic and creative works. To promote the launch, the service also streamed an eight-day marathon of Bob Ross The Joy of Painting. In July 2016, Twitch launched Social eating as a beta; it was inspired by the Korean phenomenon of mukbang and Korean players having engaged in the practice as intermissions on their gaming streams. In March 2017, Twitch added an IRL category, which is designed for content within Twitch guidelines that does not fall within any of the other established categories on the site.
Twitch retains US$2.49 of every US$4.99 channel subscription, with the remaining US$2.50 going directly to the partnered streamer. Although exceptions were made, Twitch previously required that prospective partners have an average concurrent viewership of 500+, as well as a consistent streaming schedule of at least three days a week. Streamers can make profit from cheering with Bits which are purchasable from Twitch directly. Affiliates are also able to access the Twitch Subscriptions feature, with all the same functionality that Partners have access to, with a maximum of five subscriber emotes. On the 1st of June 2023, premium streamers would keep 70% of the first $100,000 earned from subscriptions, after which their cut would be lowered to 50%. The announcement came after Twitch declined a popular request for all streamers to have 70% subscription revenue, which many noted is the same revenue already offered by YouTube. In January 2024, Twitch made some changes to the program. The platform announced that it would be introducing a new tier to its revenue share program that would grant a 60/40 revenue split and has lower requirements.
On the 6th of August 2014, Twitch announced that all on-demand videos on Twitch became subject to acoustic fingerprinting using software provided by content protection company Audible Magic; if copyrighted music (particularly, songs played by users from outside of the game they are playing) is detected, the 30-minute portion of the video which contains the music will be muted. Live broadcasts were not subject to these filters. A system was available for those who believed they were inappropriately affected and had rights to the music they used to challenge the filtering. In June 2020, a number of women stepped forward with accusations towards several streamers on Twitch and other services related to sexual misconduct and harassment claims. Twitch stated it would review all reported incidents and comply with law enforcement in any investigative efforts. However, several popular streamers on Twitch's service believed that the platform could do more to evaluate the accused individuals, prevent incidents, and protect others in the future, and used the 24th of June 2020, as a Twitch blackout day, not streaming any content through Twitch to show their support. By the evening of the 24th of June 2020, Twitch had placed several bans on the accounts of those accused after completing their investigation.
As of 2022, the countries with the most Twitch users were the United States (93 million), Brazil (16.9 million), Germany (16.8 million), France (15.4 million), the United Kingdom (13.4 million), Russia (10.5 million), Spain (10.5 million), Argentina (10 million), Mexico (9.2 million), and Italy (8.3 million users). The United States accounts for roughly 36% of all Twitch users. In late 2023, Twitch announced that they would stop operating in South Korea in 2024 because of its network fee policy, citing prohibitive costs. Users in South Korea will no longer be allowed to monetize their streams, and will be offboarded from the affiliate and partnership programs. In February 2024, Twitch was additionally fined ₩435 million ($327,067) by the Korea Telecommunications Commission, deeming Twitch's degradation of service in the country to be unjustified and undermining the interests of users. The Twitch website is blocked and the app is blocked from the Apple App Store in China. In India, Twitch was reportedly blocked by Reliance-owned telecommunication company Jio as well as internet service providers JioFiber and Hathway in September 2020 as some users were illegally streaming Indian Premier League cricket matches on the platform.
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Common questions
When did Twitch launch as a public beta?
Twitch launched in public beta in June 2011. The service started as a dedicated spin-off of the general-interest streaming platform Justin.tv.
Who acquired Twitch Interactive and when was the deal closed?
Amazon acquired Twitch Interactive for $970 million on the 25th of August 2014. The acquisition officially closed on the 25th of September 2014.
What percentage of subscription revenue do premium streamers keep after June 1 2023?
Premium streamers keep 70% of the first $100,000 earned from subscriptions starting on the 1st of June 2023. Their cut lowers to 50% after that threshold is reached.
Which countries had the most Twitch users as of 2022?
The United States had 93 million users while Brazil followed with 16.9 million users as of 2022. Germany, France, the United Kingdom, Russia, Spain, Argentina, Mexico, and Italy also ranked among the top countries by user count.
Why did Twitch stop operating in South Korea in 2024?
Twitch stopped operating in South Korea in 2024 due to its network fee policy which cited prohibitive costs. Users in the region were no longer allowed to monetize their streams or participate in affiliate programs.