In August 2014 online retailer, Amazon, paid $970m to buy video-gaming service Twitch. Formerly known as Twitch.tv, Twitch enables users to watch other people play video games online. Amazon's acquisition of Twitch was in response to the emergence of YouTube and Netflix. The purchase of Twitch enabled Amazon to reach committed gamers, and was seen by many as a natural extension of Amazon's existing offering. Amazon's Prime service already allows subscribers to stream television shows and movies. Why it horizontal integration?

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