A typical Twitch stream, with a user playing Dota 2, one of the most popular spectator games. Image: Screenshot
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Amazon's new acquisition is a billion-dollar site where people watch each other play games

The most exciting spectator sport in the world is gaming, and Amazon just grabbed the biggest broadcaster.

The latest big-money tech acquisition is likely to split people into two camps: those with an opinion of whether Twitch is worth the $970m that Amazon has paid for it, and those who don't know what Twitch is. Unlike most buys like this, the target in question has something of a limbo-like fame. Twitch is one of those things that is both extremely popular and yet of meagre reputation outside of its fanbase, like the NFL in countries that aren't the United States, or Nascar in US states outside of the Bible Belt.

Comparing Twitch to sports does make sense, though. The basic gist of Twitch is that it's a website that lets people stream their screens as they play video games, and lets other people watch as they do. The players can also appear within their videos as they want (giving a running commentary while playing is common), and audiences can talk to each other with chatrooms, but that's really the basic mechanic. It is extremely similar to YouTube in parts, with popular players attracting audiences of thousands, or even millions, on their channels.

Whether this sounds ludicrous or not will largely correlate with your age (the kids love it, and it's available on the Playstation 4 and XBox One consoles as well as PCs), or your involvement in the larger world of gaming. For those unaware, spectator gaming is on course to match some of the more popular spectator sports, and Twitch is the undisputed king of the field - the Sky Sports of gaming, if you will. It has 55m unique monthly users watching any of its one million players, and in one month alone Twitch users on average watch a combined 15 billion minutes of live or recorded gameplay. Twitch is three years old, and is roughly half the size YouTube was when that site was three years old. And, to simplify somewhat, Twitch is a success in spite of the existence of YouTube for the same reason Instagram is a success in spite of the existence of Facebook. There is little that Twitch does that YouTube doesn't, but it dispenses with the things that it doesn't need to do for the community which uses it.

The most popular games on Twitch, like multiplayer arena-battler Dota 2, are featured in tournaments which boast viewing figures that rival the biggest shows on television - a recent Dota 2 tournament, The International, boasted a prize fund of more than $10m, and was broadcast on actual TV sports broadcaster ESPN to viewing figures which "exceeded expectations across the board". Some Twitchers have enough paid subscribers to their channels that they can quit their day jobs and live on the proceeds from their gaming.

For months now Google has been courting Twitch, even going so far as to reportedly make a bid of $1bn. Yet Twitch chose Amazon (and, notably, a slightly smaller offer - albeit entirely in cash). Why? The likely reason is YouTube - after all, Google already owns the world's biggest video streaming site, and Twitch would likely have always stood as a backup or sub-site by comparison.

Conversely, Amazon's doggedly trying to get into video streaming and game distribution. Amazon Instant Video is morphing from a pay-by-title rental service into something more like Netflix, and the company has started producing its own games and TV titles. Amazon also, crucially, doesn't have its own YouTube competitor - Twitch goes a long way to filling that role - while also providing the experience and infrastructure to handle the site's rapid growth, which is reportedly beyond the ability of the current team. At peak times, Twitch generates more bandwidth than sites like Facebook; only Netflix, Google and Apple are bigger, bandwidth-wise.

It's unlikely we'll see Twitch become more like YouTube - it has no need to, after all - but Amazon will want to exploit all those watching eyeballs. YouTube currently generates $1.96bn in ad revenues for Google, and Twitch is likely to be able to match a reasonable fraction of that.

All this, for a site whose biggest mainstream success so far was when a user set up a camera to detect how his goldfish was swimming and used that to play Pokemon:

Ian Steadman is a staff science and technology writer at the New Statesman. He is on Twitter as @iansteadman.

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Ken Clarke: Theresa May has “no idea” what to do about Brexit

According to the former Chancellor, “nobody in the government has the first idea of what they’re going to do next”.

Has Ken Clarke lost the greatest political battle of his career? He doesn’t think so. With his shoes off, he pads around his Westminster office in a striped shirt, bottle-green cords and spotty socks. Parliament’s most persistent Europhile seems relaxed. He laughs at the pervasive phrase that has issued from Downing Street since Theresa May became Prime Minister: “Brexit means Brexit.”

“A very simple phrase, but it didn’t mean anything,” he says. His blue eyes, still boyish at 76, twinkle. “It’s a brilliant reply! I thought it was rather witty. It took a day or two before people realised it didn’t actually answer the question.”

A former chancellor of the Exchequer, Clarke has served in three Conservative cabinets. His support for the European Union is well known. He has represented the seat of Rushcliffe in Nottinghamshire for 46 years, and his commitment to the European project has never wavered over the decades. It has survived every Tory civil war and even his three failed attempts to be elected Tory leader, standing on a pro-Europe platform, in 1997, 2001 and 2005.

“My political career looks as though it will coincide with Britain’s membership of the EU,” Clarke says, lowering himself into an armchair that overlooks the Thames. There are model cars perched along the windowsill – a hint of his love of motor racing.

Clarke won’t be based here, in this poky rooftop room in Portcullis House, Westminster, much longer. He has decided to step down at the next election, when he will be nearly 80. “I began by campaigning [in the 1960s] in support of Harold Macmillan’s application to enter [the EU], and I shall retire at the next election, when Britain will be on the point of leaving,” he says grimly.

Clarke supports Theresa May, having worked with her in cabinet for four years. But his allegiance was somewhat undermined when he was recorded describing her as a “bloody difficult woman” during this year’s leadership contest. He is openly critical of her regime, dismissing it as a “government with no policies”.

For a senior politician with a big reputation, Clarke is light-hearted in person – his face is usually scrunched up in merriment beneath his floppy hair. A number of times during our discussion, he says that he is trying to avoid getting “into trouble”. A painting of a stern Churchill and multiple illustrations of Gladstone look down at him from his walls as he proceeds to do just that.

“Nobody in the government has the first idea of what they’re going to do next on the Brexit front,” he says. He has a warning for his former cabinet colleagues: “Serious uncertainty in your trading and political relationships with the rest of the world is dangerous if you allow it to persist.”

Clarke has seen some of the Tories’ bitterest feuds of the past at first hand, and he is concerned about party unity again. “Whatever is negotiated will be denounced by the ultra-Eurosceptics as a betrayal,” he says. “Theresa May has had the misfortune of taking over at the most impossible time. She faces an appalling problem of trying to get these ‘Three Brexiteers’ [Boris Johnson, David Davis and Liam Fox] to agree with each other, and putting together a coherent policy which a united cabinet can present to a waiting Parliament and public. Because nobody has the foggiest notion of what they want us to do.”

Clarke reserves his fiercest anger for these high-profile Brexiteers, lamenting: “People like Johnson and [Michael] Gove gave respectability to [Nigel] Farage’s arguments that immigration was somehow a great peril caused by the EU.”

During the referendum campaign, Clarke made headlines by describing Boris Johnson as “a nicer version of Donald Trump”, but today he seems more concerned about David Cameron. He has harsh words for his friend the former prime minister, calling the pledge to hold the referendum “a catastrophic decision”. “He will go down in history as the man who made the mistake of taking us out of the European Union, by mistake,” he says.

Clarke left the government in Cameron’s 2014 cabinet reshuffle – which came to be known as a “purge” of liberal Conservatives – and swapped his role as a minister without portfolio for life on the back benches. From there, he says, he will vote against the result of the referendum, which he dismisses as a “bizarre protest vote”.

“The idea that I’m suddenly going to change my lifelong opinions about the national interest and regard myself as instructed to vote in parliament on the basis of an opinion poll is laughable,” he growls. “My constituents voted Remain. I trust nobody will seriously suggest that I should vote in favour of leaving the European Union. I think it’s going to do serious damage.”

But No 10 has hinted that MPs won’t be given a say. “I do think parliament sooner or later is going to have to debate this,” Clarke insists. “In the normal way, holding the government to account for any policy the government produces . . . The idea that parliament’s going to have no say in this, and it’s all to be left to ministers, I would regard as appalling.”

Clarke has been characterised as a Tory “wet” since his days as one of the more liberal members of Margaret Thatcher’s government. It is thought that the former prime minister had a soft spot for his robust manner but viewed his left-wing leanings and pro-European passion with suspicion. He is one of parliament’s most enduring One-Nation Conservatives. Yet, with the Brexit vote, it feels as though his centrist strand of Tory politics is disappearing.

“I don’t think that’s extinct,” Clarke says. “The Conservative Party is certainly not doomed to go to the right.”

He does, however, see the rise of populism in the West as a warning. “I don’t want us to go lurching to the right,” he says. “There is a tendency for traditional parties to polarise, and for the right-wing one to go ever more to the right, and the left-wing one to go ever more to the left . . . It would be a catastrophe if that were to happen.”

Clarke’s dream of keeping the UK in Europe may be over, but he won’t be quiet while he feels that his party’s future is under threat. “Don’t get me into too much trouble,” he pleads, widening his eyes in a show of innocence, as he returns to his desk to finish his work. 

Anoosh Chakelian is deputy web editor at the New Statesman.

This article first appeared in the 29 September 2016 issue of the New Statesman, May’s new Tories