Imagine you're a University that needs to, as quickly as possible, build a system to have streaming video for all your classes. Otherwise, you've got students and parents saying they want their money back because they paid for real classes, with Q&A and a live professor, and not pre-recorded videos.

200 viewers for 2 hours sound about right for a typical large University lecture. Typical students are paying hundreds or even thousands of dollars per lecture. $64 per class would put a dent into the University's budget, but not a huge one. And the fact that you can now scale a class to 1000 to 2000 students simultaneously, well that's cheaper than hiring more professors.

In short, I don't think this is meant to compete with Twitch or Youtube. That doesn't mean it doesn't have a niche it can work within.

(Bias note: I work for a totally unrelated branch of AWS. My thoughts and words are my own and are not representing my employer in any way.)