Amazon Launches Video Service to Compete with YouTube
Last week, Amazon launched a service that allows users to post videos and earn royalties with them. It seems that most online websites are now willing to compete directly with YouTube. The service called Amazon Video Direct will make the videos uploaded by users available for rent or purchase, for free viewing with ads or via a subscription offer.
Amazon will pay 50% of the revenue from the sale of videos to the content creators, according to the license agreement of the company. For ad-supported videos, the creators will receive half of the net revenue from ads.
With an annual subscription of $99, Amazon’s loyalty program known as Prime, already offers original TV programming and access to digital entertainment products, as Prime Music and Prime Video, as well as the delivery of purchases within one hour.
Amazon, however, has a long way to go to catch up with YouTube. Available since 2005, the free service is supported by the ad model, but last year, the site also created a subscription option for $ 10, call YouTube Red.
Videos of Amazon’s service will be available for the users in the United States, Germany, Austria, the UK, and Japan. The company has also signed partnerships with several services such as Conde Nast, The Guardian, the site Mashable and toymaker Mattel.
Amazon has made major investments in the video segment. In a note released to clients on Tuesday, Bernstein analyst Carlos Kirjner estimated that the company will spend about $2.9 billion in video content for Amazon Prime this year.
The company also offers a monthly subscription for your video program for $10.99 and plans to offer its streaming video service as a separate service for a monthly fee of $8.99.