How Does Amazon Video Direct Compare to YouTube?

With so many people opting out of overpriced cable and dish TV, the streaming video arena is the featured battleground. The news that Amazon is challenging YouTube for some of the attention and video advertising space is causing quite a stir. It was announced on Tuesday, May 10 that Amazon account holders are now able to upload original or licensed videos.

There are 4 ways to allocate the management of video using Amazon Video Direct:Amazon Video Direct

  • Free (with advertisements)
  • Offer it as a subscription channel
  • Available to rent or own
  • For use with Amazon Prime memberships

The options are very similar to other video sites. What makes this announcement so interesting is that Amazon is taking on YouTube head to head, which is owned by Google, as well as Facebook Live. Not too many companies in the online space today have the clout to take on those two giants. 

It remains to be seen how successful Amazon’s launch will be, but they definitely have the resources to give it a go. Amazon’s 1st quarter earnings report blew everyone away, doubling what the earnings estimates predicted.

WSJ-Amazon-Profit-Loss

This article from Fortune.com discusses the possible corporate partners for Amazon Video Direct and other information about the 3 tech giants:  Google, Amazon, and Facebook.

Amazon, which has been steadily advancing on the video front, on Tuesday announced a new service called Amazon Video Direct that sounds more or less identical to YouTube. In other words, it’s a platform for video content of any kind, uploaded either by corporate partners or by individual content creators, with a variety of revenue-generating options built into the model.

 As with YouTube, the lowest level of participation involves uploading your video in return for a share of the advertising revenue (55%, the same as YouTube). Creators can also offer their videos for sale or rental and get a share of that revenue. The next step is to sell access to a series of videos as a subscription through the Streaming Partners Program. For larger partners, Amazon  AMZN 1.77% offers participation in its Prime Video service, where they get paid a per-hour royalty fee.

 In terms of corporate partners, Amazon is launching with content from a range of media outlets, including Conde Nast Entertainment, The Guardian, Mashable, Machinima (an early YouTube partner), and one of Jeff Bezos’s personal investments, Business Insider.

Much like YouTube, Amazon doesn’t just want corporate content, however. It also wants to appeal to the individual creator who could someday become a media outlet in their own right. So it is offering what it calls the “AVD Stars” program. This involves a pool of $1 million to be paid out to the top-performing creators every month, on top of whatever revenue they earn from their videos.

All this sounds a little like Amazon copied Google’s playbook and just inserted the term “Amazon” wherever the word “YouTube” originally appeared, which is somewhat ironic, given Google’s tendency to copy others (Google+ etc.). Will Amazon succeed? It clearly has a lot of resources to throw at the problem. But YouTube is a well-established player with huge brand awareness and a decade of experience. It’s going to take more than an upload feature and the promise of revenue to put a dent in that.

Speaking of giants, Facebook  FB -0.61% continues to advance into new areas, and it seems obvious that it wants to not just be a player in video but to own video as a content experience in as many different ways as possible. It already has more than nine billion video views a day, and with the addition of a live-streaming option, it has been attracting more TV-style live content as well—in part because it has been paying both individual celebrities and news outlets to use it.

Now, it seems that Facebook Live no longer has to be, well… live. According to a recent report in the Wall Street Journal, video producers of all kinds are now using the feature to share shows and programs that have already aired. At least publicly, Facebook says this isn’t the intended use of Facebook Live, but it’s hard to see the company complaining if more content producers start using it that way. In effect, Facebook could gradually become a portal for virtually any kind of video content, live or archived.

Read the full article here

http://ift.tt/1qeQkm4Video courtesy of USA Today

How Does Amazon Video Direct Compare to YouTube? is courtesy of SS Pro Services

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