Amazon launches video service to potentially compete with YouTube

Shortly after launching a streaming service at a price that rivals Netflix’s most popular plan, Amazon is going after YouTube.

The e-commerce giant announced today that it will launch a video service that allows users to post videos and earn royalties, Reuters reports.

Amazon will make videos available to rent or own, view free with ads, or available as a subscription add-on, and furthermore, will pay creators 50 percent of the revenue earned from rental receipts. With ad-supported videos however, creators will receive half of the net ad receipts.

Amazon’s Prime entertainment service already offers original television content and access to Prime Music and Prime Video for an annual $99.

On the other hand, YouTube offers a free service, supported by advertisements, as well as a $10 subscription option called YouTube Red.

With Amazon’s recent launch of Prime Video at a monthly subscription fee of $8.99 per month, it’s clear that the world’s largest online marketplace is making a definitive push towards video.

Some other features of Amazon Video Direct may include the creator’s control over which countries their videos can be streamed. Currently, these countries are limited to where Amazon Video is already available – the U.S., Germany, Austria, United Kingdom and Japan.

TechCrunch reports that several big brands have signed up to participate in the program, including Conde Nast Entertainment, HowStuffWorks, Samuel Goldwyn Films, The Guardian, Mashable, Mattel, StyleHaul, Kin Community, Jash, Business Insider, Machinima, TYT Network, Baby Einstein, CJ Entertainment America, Xive TV, Synergetic Distribution, Kino Nation, Journeyman Pictures, and Pro Guitar Lessons.

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