According to its press release, Amazon plans to monetize Amazon Video Direct by playing video advertisements against the content. The company will then distribute a percentage of this revenue to the content's creators.
This decision might come as a bit of a head-scratcher, given YouTube's immense popularity. However, this isn't Amazon's first foray into the world of self-publishing, either.
In 2007, Amazon created Kindle Direct Publishing, a service that allowed authors to circumvent the traditional client-publisher relationship and sell their written content directly to the Seattle-based digital-publishing giant. It isn't clear how meaningful a revenue contributor Kindle Direct Publishing has become, but the company's willingness to work with independent content producers is at least worth noting. Regardless, disrupting Alphabet's YouTube will be anything but easy.
In an attempt to make their streaming service more appealing to content creators,Amazon has launched Video Direct, which allows anyone to upload and get paid per hour streamed.
According To Amazon this is how that breaks down:
- Buy or rent: Content providers can allow viewers to buy or rent their work and receive 50% of net revenue.
- Included with Amazon Prime: Providers can make their content available on Amazon Prime and earn $0.15 for every hour their content is streamed.
- Free with ads: Providers can make their content free with ads and receive 55% of net advertising revenue.
- Add-on subscriptions: Providers can make their content available only to those with add-on subscriptions and receive 50% of net monthly revenue.
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