YouTube, the Google-owned streaming service, is reportedly set to acquire video game streaming service Twitch for $1 billion.

YouTube To Acquire Twitch?

Twitch functions somewhat like a niche version of YouTube in that it consists of people uploading videos of themselves for other people to watch. However, it’s solely for live gamers and live gaming enthusiasts, with people posting videos of themselves playing the video games or talking about them.

In 2013, Twitch’s monthly audience exploded from 20 million to 45 million. On average, those users watched 106 minutes of video per day, while 6 million new videos were broadcast per month. By February of this year, Twitch was rated as the fourth largest source of network traffic behind Netflix, Google and Apple, according to a study by infrastructure company Deep Field.

Much of Twitch’s more recent growth is credited to the increased popularly of the Playstation 4 and Xbox One, which both host Twitch apps. Prior to launching apps for the gaming consoles, Twitch had only been available for PC.

"When video game historians look back on gaming a decade from now, 2013 will be the year they cite as the tipping point of streaming," Twitch VP of marketing Matthew DiPietro said earlier this year. "Every major event, publisher, developer, and media outlet in the gaming industry had a presence on Twitch, and streaming became an ever-present piece of the gaming experience. And it’s only going to get bigger."

Why YouTube Wants The Gaming Streaming Service

YouTube currently has a number of gaming channels, including PewDiePie, Vanoss Gaming and Yogscast. PewDiePie alone had almost 300 million video views last month and gaming in general is one of the largest genres on the streaming service. If YouTube were to acquire Twitch, it would cement its place as the top platform for e-sports and would consequently have a highly desirable audience for targeted ads.

Twitch has yet to comment on the report that states it’s only a matter of time before YouTube acquires the company. It’s been suggested in other reports that a sale is far off and that Twitch is actually in talks with a number of companies, including Xbox One.

h/t: The Guardian

Read more about: