This market analysis report evaluates the live streaming platform Twitch. It finds that Twitch is currently successful and positioned for future growth. Twitch significantly outperforms its competitors YouTube Gaming and Facebook Gaming in revenue. The report recommends that Twitch expand into new audiences like sports and music while continuing to support gaming. Partnering with celebrities and updating its marketing strategy could help Twitch further establish itself in mainstream media.

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A Market Analysis for
(Twitch Interactive Inc)
(Zach Moyes)
Full Sail University
Project & Portfolio II: Business and Marketing
(July 28, 2021)

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EXECUTIVE SUMMARY
This market analysis report provides an evaluation of the current status and future
outlook of the live streaming company Twitch Interactive. The report will show competitors,
financial success, and marketing opportunities. Findings show that Twitch is outperforming their
competitors, in addition to offering a service that benefits both Twitch and their parent company
Amazon.
The report finds that Twitch is in positive current position with a bright future ahead of
them. Twitch is in a great position to capitalize on their growing userbase and to increase their
revenue through the service offered called Twitch Prime. Recommendations comprise of
updating their marketing strategy to include Esports, music, and regular sports into the platform,
on top of the already existing gaming core. In addition, creating partnerships with major
celebrities and companies can help further push Twitch into the mainstream media. It’s
recommended that Twitch works to be seen as a part of mainstream media to improve reputation
and increase revenue and profit.

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OBJECTIVE
The objective of this report is to convince executives at Twitch to focus their efforts to
break into the mainstream media by expanding Twitch’s target audience, forming partnerships
with major celebrities and companies, and branding themselves as the best platform to watch
Esports on. Twitch will be able to do this by updating their marketing strategy to appeal to
people in the music and sports industry. They will need to do this while also reminding their core
gaming fanbase that they are still important to Twitch. Creating partnerships with major
celebrities and companies will help solidify Twitch as a form of mainstream media to the public.
Pushing Esports into mainstream media will help gamers realize Twitch still cares about them.
This report will also show how one of the main services, Twitch Prime, is an effective service
that helps bring success to Twitch and parent company Amazon.
RESEARCH METHODOLOGY
The information gathered in this report is both qualitative and quantitative and was found
using external, secondary research from the Internet. The information was gathered during the
month of July 2021. The oldest sources come from the year 2019. Since Twitch is a subsidiary of
Amazon, financial information on stock prices, revenue, and profits couldn’t be found for Twitch
specifically.
RESEARCH AND KEY FINDINGS
Twitch was founded in 2011 by Justin Kan and was originally released as new gaming
feature for a live streaming service called Justin.tv. In 2014, Twitch and Justin.tv rebranded to
form a new company called Twitch Interactive (Quartz, 2021). In the same year, Amazon bought

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Twitch for $970 million. Amazon is looking to break into the gaming and live streaming market
with the acquisition of Twitch.
Twitch is an online streaming platform that allows users to watch or broadcast
themselves on the internet. Successful streamers usually use a variety of hardware and software,
such as mixers, microphones, cameras, lighting, and more. People who use Twitch are generally
looking to be entertained by either watching someone who plays video games at a high level or
by watching someone who humors them. Users are also looking to be a part of something bigger
by being in a community full of like-minded individuals. People who use Twitch are generally
male and can range anywhere between 13 to 34 years of age (Twitch Advertising).
One of the main services that Twitch pushes is called Twitch
Prime. With Twitch, you can subscribe to your favorite streamer for
$5 a month to help support them and gain special perks within that
streamers broadcast. Twitch Prime allows you to receive a free
Twitch channel subscription every month, a free game every month,
free in-game loot, exclusive emoticons, expanded chat color options,
and a member-only prime chat badge (Prime Insider, 2018).
The current target market for Twitch would be young to middle age male gamers. Twitch
is usually associated with the younger generation and internet culture. With opportunities on the
horizon, Twitch could capitalize on expanding their target market to sports and music fans.
COVID-19 has made a lot of people realize that live streaming will be prominent in the future.
Twitch will have to figure out a way to expand their target market without upsetting their current
gamer fanbase.
Twitch is unique because it has such a firm grasp on the live streaming industry. Twitch
only has two major competitors in the gaming live streaming market as of right now, YouTube
Twitch Prime

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Gaming and Facebook Gaming. These two companies could become threats to Twitch if they
were to invest in streamers that know how to create an entertaining environment. In contrast,
Twitch is making an estimated $7.6 billion more in total revenue compared to their biggest
competitor YouTube Gaming, as of March 2021 (Business of Apps, 2021). In 2020, Twitch
amassed an estimated $2 billion for their advertising and subscription revenues. The COVID-19
pandemic was a big reason as to why Twitch had such a spark of revenue in 2020. With people
being forced to stay at home, they had to find ways to be entertained and Twitch was a valuable
source of entertainment for many people. In previous years Twitch generated $230 million in ad
revenue for 2018 and $300 million in ad revenue for 2019. It’s safe to say that Twitch will be on
a steady incline for the foreseeable future. In the grand scheme of things, Twitch only accounted
for 0.1% of Amazon’s revenue in 2019 because Amazon is one of the largest companies in the
world.
CONCLUSIONS
Twitch is in great shape moving forward in the live
streaming market. Twitch hit a spike in 2020 because the
coronavirus pandemic forced people to stay at home.
Overall, Twitch is in a great position to capitalize on their
newfound userbase. Twitch Prime is also a fantastic
service that will benefit Twitch and their parent company
Amazon immensely. Twitch Prime is a kill two birds with one
stone situation. More and more people began to utilize online shopping from Amazon Prime
because of the global pandemic. Since you can use Twitch Prime if you have Amazon Prime,
people will be more enticed to subscribe to Amazon Prime. Amazon is the ultimate winner in
Realistic Setup for Twitch Streamer

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this situation. Twitch will be able to keep up their recent success if they can expand their target
market while updating their marketing strategy.
RECOMMENDATIONS
The next step for Twitch is to put themselves in a position to enter the mainstream media.
Twitch has a lot of opportunities in the horizon. With the growth in Esports, Twitch could find
themselves as a major player in pushing Esports into the mainstream media. Twitch could also
expand their platform by including other entertainment medias besides gaming on the website.
The sports and music industries are points of interest for Twitch to create partnerships with.
Also, creating partnerships with major celebrities and companies can help speed up the process
to push the platform into the mainstream. Twitch can expand their revenue and income by
updating their marketing strategy to include these four things. With that being said, there will be
challenges along the way with keeping Twitch’s core gaming fanbase happy. Twitch will need to
pay close attention to how their updated marketing strategy is received from their users. This
next step with the platform will be strategic and tactical decisions made by top and mid-level
managers which will affect the future of the organization. Enlarging the target market while also
updating the marketing strategy will be crucial in the future success of Twitch.

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With the looming threat of competitors like YouTube Gaming and Facebook Gaming,
Twitch will need to realize what really makes their platform and formula so successful. YouTube
Gaming and Facebook Gaming have already taken some of Twitch’s top-level streamers. By
giving out large contracts to some of the biggest streamers on the platform, Twitch can
successfully minimize the chances of their competitors taking their position at the top of the live
streaming world.
A great goal for the future of Twitch would be
to increase their monthly visitors and monthly active
streamers. As of 2020, Twitch has 140 million unique
monthly visitors and 9.2 million monthly streamers
(MediaKix, 2021). Twitch should look to increase their
monthly visitors to 200 million and increase their
active monthly streamers to 15 million by the end of
2021. This goal should be challenging enough but also attainable for the company. For some
context, Twitch increased their monthly active streamers in 2020 from 3.9 million to 9.2 million,
which is nearly a 135% increase. This goal should be attainable if Twitch capitalizes on the
opportunities mentioned above with the addition of a sports and music fanbase.

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REFERENCES
Epstein, A. (2021). Twitch is the undisputed champion of video game streaming. Quartz.
https://qz.com/1966986/twitch-owned-by-amazon-is-the-dominant-force-in-live-streaming/
Iqbal, M. (2021). Twitch Revenue and Usage Statistics (2021). Business of Apps.
https://www.businessofapps.com/data/twitch-statistics/
mediakix. (2021). The Top 10 Twitch Stats That Marketers Must Know.
https://mediakix.com/blog/top-twitch-statistics-live-streaming-game-
platform/#:%7E:text=8.-
,Twitch%20Has%209.2%20Million%20Monthly%20Active%20Streamers,%E2%80%94
%20nearly%20a%20135%25%20increase
Prime Insider. (2018). 5 Twitch Prime benefits for gamers. Amazon.Com.
https://www.amazon.com/primeinsider/tips/twitch-
benefits.html?ref=insider_ar_video_pvjaws
Twitch Advertising. (2020). twitch.tv. https://twitchadvertising.tv/audience/
IMAGES
Sloane, G. (2020). Twitch and Amazon Logo [Photograph].
https://adage.com/article/digital/how-brands-can-work-twitch-amazon-makes-its-
mark/2286301.
Conditt, J. (2021). Typical Streaming Setup [Photograph]. https://www.engadget.com/2019-07-
24-game-streaming-setup-dorm-best-gear.html.

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Graph of Twitch’s Monthly Active Streamers in 2020 [Graph]. (2021).
https://mediakix.com/blog/top-twitch-statistics-live-streaming-game-
platform/#:%7E:text=8.-
,Twitch%20Has%209.2%20Million%20Monthly%20Active%20Streamers,%E2%80%94
%20nearly%20a%20135%25%20increase