Amazon Pushes Deeper into Video Advertising with YouTube Competitor

Amazon Video DirectWhile we’ve seen various ‘YouTube killers’ announced over the years, few are worth taking seriously. However, Google just might have some meaningful competition on its hand, particularly when it comes to the premium end of the market. Earlier today Amazon launched a YouTube competitor, known as ‘Amazon Video Direct‘, which is a video platform that will enable professional content producers to upload their own content. The intention is clearly to build out the Amazon’s video library with a view to competing not only with YouTube, but also with OTT competitors like Netflix. The Video Direct service is launching with video content from toy maker Mattel, Condé Nast Entertainment and Mashable, among others.

Content owners can monetise in a number of ways:

  • If the content is monetised with advertising, Amazon will take 45 percent of the revenue.
  • If the content is rented or bought by the user, the revenue is split 50/50.
  • The videos can also be sold as an add-on subscription to users pf Amazon Prime Video. Add-on subscriptions are available through the Streaming Partners Program, and are intended for larger-scale video providers. Content powners will receive 15 cents per hour per hour of video streamed to Prime subscribers.

Amazon will also distribute a share of $1,000,000 per month as a bonus to the Top 100 titles included with Prime through Amazon Video Direct. This bonus will be based on global customer engagement and is incremental to revenue earned from hours streamed, rentals, purchases, monthly subscriptions, and ad impressions.

Amazon Video Direct

Amazon’s reach will initially be slightly limited as Amazon Video is currently only available in the US, Germany, Austria, UK and Japan, but content providers would see their content delivered right across multiple devices, including Amazon’s Fire TV, phones, tablets, game consoles, Smart TVs and on desktop.

When it comes to performance metrics, Amazon says they will provide minutes streamed, the number of subscribers, projected revenue, and payment history, and content owners will be able to optimise the way they offer and promote their titles.

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