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?
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?
Market integration is a form is market function in which sellers align their interests with one another in order to increase their profits. With market integrations, prices of the same product across different markets follow the same price levels over a time period.
Market integration is the practice to integrate multiple small and large economies in one nation as one large economy. A market is always known to balance itself out eventually. An example can be the European Union where multiple small and large economies are combined to form a supranational economy.
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