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Amazon jumps into user-generated video market

Michelle Avenant
By Michelle Avenant, portals journalist.
Johannesburg, 11 May 2016
Amazon Video Direct is more tailored to businesses than amateur-friendly YouTube.
Amazon Video Direct is more tailored to businesses than amateur-friendly YouTube.

Amazon made a sudden entry into the user-generated video market yesterday, with the launch of Amazon Video Direct (AVD).

Like Google-owned top user-generated video platform YouTube, AVD allows users to upload their own content.

While many have dubbed the new platform a YouTube rival, others have noted AVD's prominent and flexible revenue-gathering options distinguish the platform as more specifically tailored to businesses and professional content creators - known as "partners" on such platforms - than amateur-laden YouTube.

According to tech news site Ars Technica, AVD requires content creators to open an account under a "company" name, connect a bank account, and submit tax information, giving revenue a central role.

Amazon says its new video service is unique for its flexibility of profit options. "For each title, you can choose to earn royalties based on hours streamed by Prime members, a revenue share for rentals, purchases, monthly subscriptions, or ad impressions ? or any combination of these options."

According to Vox, this means content creators can make their content free to all users by paid advertisements; available for rental or purchase; available for add-on subscription via Amazon's Streaming Partners Programme, or available to Prime subscribers as part of Amazon Prime's video offerings.

Variety reports Amazon will pay 50% of the retail prices for subscriptions, digital rentals and purchases; 15 US cents (about R2.30) per hour streamed by Prime subscribers in the US, and 6 US cents (about 90 SA cents) per hour streamed by Prime subscribers outside of the US. These earnings are capped at $75 000 (about R1.1 million) per year, Variety adds.

AVD partners also stand the chance of receiving a share of the monthly AVD Stars bonus pool, which distributes a million-dollar monthly reward between the creators of the 100 top-viewed videos on the platform each month.

Early AVD partners include Business Insider, The Guardian, HowStuffWorks, Mashable and Conde Nast Entertainment.

Amazon's growing online video profile also includes e-sports and creative streaming platform Twitch, which it acquired for $970 million in August 2014.

AVD is currently available in the US, the UK, Germany, Austria and Japan, and can be used on smartphones and tablets, gaming consoles, smart TVs, and notebook and desktop computers.

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