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Amazon launches royalty based video service Amazon Video Direct


Amazon has launched a new video service named ‘Amazon Video Direct’ (AVD) that allow users to post videos and earn royalties from them, the company said in a press statement.

The service will make the uploaded videos available on rent or for purchase; freely viewable to “all Amazon customers” through an ad-supported model. It can also be purchased as an add-on subscription package through streaming partners; or available to all Amazon Prime Video subscribers with no additional charges. The service is currently live in US, UK, Germany, Austria and Japan.

At first, this might sound like YouTube, but Amazon says that the service is meant for ‘video content creators’. During the Sign-up process, it mandatorily collects company information, bank account details, and asks to submit tax information as well.

AVD has partnered with content providers/distributors like Conde Nast Entertainment, HowStuffWorks, Samuel Goldwyn Films, The Guardian, Mashable, among others. Users can view movies, TV shows, music, documentaries, etc. uploaded by individual content creators and partners as well.

In addition, Amazon says that content providers can make their videos available on—Fire TV, Fire and other iOS and Android tablets, connected TVs, game consoles, iOS and Android phones, and laptops

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Royalties applicable

According to Amazon:

-When users buy/rent videos, a content provider receive 50% of net revenue made from purchase/rental receipts.

-When users view videos through their Amazon Prime subscriptions, content providers will make $0.15 for every hour viewed/streamed in the US. In UK, Germany and Japan the rate is fixed at $0.06 per hour streamed/viewed.

-When users view content freely through the ad-supported model, content providers receive 50% of net monthly revenue from ad impressions.

-When users purchase and view AVD videos through add-on subscriptions, content providers make 50% of net monthly revenue receipts from streaming partners.

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Amazon Fire TV

In April 2014, Amazon forayed into home entertainment space by unveiling an Android-powered media streaming set-top box called Fire TV. The console can be plugged into an HDTV, allowing users to stream online content (videos, music, photos) over WiFi, although the focus seems to be on video content. At the time of launch, besides aggregating content from Amazon Video and Amazon Studios, Fire TV initially offered third party apps like Netflix, YouTube, Hulu Plus, Vimeo, among others.

It currently claims to have aggregated over 4,000 channels, apps, and games including over 250,000 TV episodes and movies from Netflix, Amazon Video, HBO GO, Hulu. Eros Now’s content will now be accessible via Amazon Fire console box that can stream content across smart TVs, tablets, phones, etc.

Amazon Financials

The company reported a net profit of $482 million during Q4 2015, registering a 125% growth in net profits, from $214 million in the same quarter last year. The company also posted revenues of $35.75 billion in the same quarter—a growth of 21.88% from $29.33 billion in the same period last year.

YouTube Red

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In October last year, YouTube had launched a new paid service called YouTube Red which will allow users to watch videos without ads, original content and listen to music. The service is currently available in the Unites States for $10 per month. However, the service is not available outside the US. In February, it also introduced original programming by adding original content across comedy, romance, thrillers and other genres this year on its Originals channel.

Also Read:
YouTube to launch original content in India with partners
YouTube to produce original music: report

Image Credit: Flickr user Robert Nelson under CC BY 2.0

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MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.



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