The new platform created by Amazon comes as a tough competition to YouTube and other’s video advertising dollars and IPTV traffic. Available to any video creator, Amazon Video Direct gives content makers four distribution options: content can be made available to Prime Video subscribers on a per-hour royalty fee; content can be sold as an add-on subscription via the Streaming Partners Program; it can be offered as a digital rental or purchase; or it can be made available to all Amazon customers for free with ads- in this scenario video creators will get a 55% share of the ad revenue.
Like YouTube, Amazon has also introduced the “AVD Stars” program which allocates USD$1 million per month to reward top-performing video creators and give them an incentive to add their content to Prime Video. The AVD Stars fund is eligible to providers who stream content starting on June 1.
The advantage to video creators is that the content can be marketed to Amazon’s millions of online shoppers, and push it with their sophisticated recommendation engines.
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