Q: Today marks the debut of Amazon Video Direct, a service catering to content creators that will allow anyone to upload videos. But how, exactly, does Amazon expect to make a dent in a market that YouTube dominates?
A: I’m guessing the company thinks Amazon loyalists would prefer using Video Direct, especially if it means watching ad-free content. The service gives creators the option of making money off their content in a few ways:
• Ad-supported videos available for free
• Videos users can rent or own
• Videos offered through subscription channels
• Videos exclusive to Prime members
This seems like a long shot. YouTube has had 10 years to build up its service and cultivate relationships with content creators, and the site now has an ad-free subscription tier. Plus, Amazon’s cut of ad revenue from free videos will be 45%, the same as YouTube’s current rate.