Amazon hopes the acquisition will help boost its gaming and video platforms. Twitch is capable of streaming events like game tournaments and music concerts to a large number of people, creating 2 percent of internet traffic in the United States.
"In the same way that YouTube and Netflix have to develop really robust architecture to stream enormous amounts of video, Twitch had to build a similar infrastructure geared toward live gaming," David Cowan, a partner at Twitch investor Bessemer Venture Partners, told the Wall Street Journal.
Google was reported to be in negotiations in July, but the company refused to confirm such speculation. Yahoo was also rumored to be in talks, but also declined to comment.
In addition to the $970 million, Amazon has agreed to pay more than $100 million in extra payments if certain performance goals are met.
Before the app went live at 1 p.m. EDT, the only way to create a time-lapse video was with Steadicam technology or a $15,000 tracking rig. Now the technology is in the hands of iPhone users for free, reports WIRED. Instagram would like to make it available on Android, but the API needs to be adjusted before that is possible.
The app is simple to use. After recording a video, users just have to select a time-lapse speed on a slider between 1x and 12x. After recording and selecting a speed, the Hyperlapse can be posted directly to Facebook and Instagram. The 1x is better used for tracking a shot while moving behind or near an object while the higher speeds are better for slow-moving or distance shots -- similar to the opening credits of Netflix show House of Cards.
Instagram provided a video to WIRED showing the difference between a normal video of city landscapes compared to the Hyperlapse version.
The app was created by software engineers Thomas Dimson and Alex Karpenko and designed by Chris Connolly. They decided to make it a standalone app because they believed it would be "hidden" in the Instagram app, but it still echoes its parent company.
"This is an app that let's you be in the moment in a different way," said Mike Krieger, Instagram's co-founder and CTO. "We did that by taking a pretty complicated image processing idea, and reducing it to a single slider. That's super Instagram-y."