Amazon has officially launched Amazon Video Direct, the company’s bid to be the place to watch any kind of video available – putting it in direct competition with Internet video distributors like YouTube, Facebook and Vimeo.
Partners participating in Amazon Video Direct have four distribution options.
1. Make content available to Prime Video subscribers and receive a per-hour royalty fee.
2. Sold as an add-on subscription through the Streaming Partners Program.
3. It can be offered for digital rental or purchase.
4. It can be made available to all Amazon customers for free with ads, and creators will receive a 55% share of the ad revenue (like YouTube).
Amazon will pay partners 50% of the retail price for digital purchases, rentals and subscription fees. If they choose Prime Video distribution, creators will earn royalties of 15 cents per hour streamed in the U.S. and 6 cents in other territories – capped at $75,000 per year0 under the standard terms.
The move comes after Amazon introduced the option to subscribe to Prime Video for $8.99 per month in the U.S. as a standalone service; previously, it was available only through the Prime $99-per-year membership program.
At launch, AVD partners include: 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.