Google is said to have its eyes on video-streaming service, Twitch. According to reports, talks are in the early stages and no deal is imminent.
Video gamers can use Twitch to live stream their game play. This differs from other streaming services such as Netflix which streams content, not live content.
A Twitch acquisition could potentially give a boost to Google’s own streaming service, YouTube, particularly because of the ad sales audience.
“Last year, Twitch left CBS Interactive to handle their own ad sales in house. Now, with upward of 45 million views per month and 400-500 million ad impressions, this deal would allow them to bring YouTube scale to massive live audience,” said Jeremy Rosenberg, head of digital at Allison and Partners.
Twitch has also branched out to mobile game streaming, which could be a huge play for Google with the Play store and their Android operating system allowing native integration.
Regarding hot topic, net neutrality, Rosenberg doesn’t think it should be a big issue because if this deal goes through it will be tiny compared with the size and scope of some other media deals, such as Time Warner and Comcast.
The issue instead will be about bandwidth according to Rosenberg. “The availability of bandwidth in order for them to publish and stream all of this live content both on traditional wires but then also over the air, so for the mobile gaming that’s going to be a little bit of a different issue dealing with the carriers in making sure that those streams can stream live up and down from the mobile carriers,” Rosenberg said.
—By CNBC’s Christina Medici Scolaro.