Amazon Launches Amazon Video Direct (AVD) – A Nightmare for Rivals

Amazon Video Direct

Founded by Jeff Bezos on July 5, 1994, Amazon turned to be the biggest eCommerce and cloud computing venture in the world. Over the years, Amazon spanned itself in many countries and entered into a multitude of domains that symbolized its presence and helped the company to dominate in key functioning areas such as online shopping, web hosting, content distribution etc.

Jeff, however, has always known for revolutionizing the company that would easier the lives of people connected with amazon services. Since the world is coming closer digitally and every second, a couple of users are joining the web, the video market has risen significantly in the global marketing graphs, and many business pundits are holding their stakes to bet on the overwhelming demand for video content in the future. If we talk about video marketing, too, then, it still is going to be the king.

Amazon Video

Recently, Amazon launched Amazon Video Direct (AVD) and speculations are going that it was introduced to compete with video content platform, YouTube. Oh, and also Netflix, HBO, Hulu etc. It can be wrong on some level because it seems, Jeff is trying to bring transparency and is an ongoing battle with Netflix that holds a huge market share in VOD (video on demand). Of course, a video library is already available to Amazon Prime subscribers, AVD aims to offer royalties to content creators, and decides the sum on the reach and viewership. The buzz has been created and it will definitely gain the attention of various content creators who look to have a solid platform to earn money while creating content that can appeal to masses and can carry certain messages.

A Brief History of Video Content

When YouTube was founded by Chad Hurley, Steve Chen, Jawed Karim on February 14, 2005, probably they not even had imagined the milestones their portal will create year-after-year. It’s 2016, and YouTube is still considered as the number 1 video portal, serving the needs of billions of users who consume countless video data. If we dig deeper and go a wee-bit off-track; then, telecom companies have also increased their revenue by selling internet plans.

The YouTube fever has really taken over the world, and people can be seen streaming videos on YouTube anywhere; for instance, while sipping their coffee in Starbucks, or having their Big Mac in McDonalds, people just can’t leave their virtual space out of YouTube because there’s a lot of content uploaded every second on YouTube and the best part is; people can create their content and even earn a lot from there through ad revenue. YouTube has turned a lot of people into millionaires. For example; PewDiePie has earned $12 million through video blogging on his YouTube channel of 40 million subscribers.

Youtube Top Earners 2015

According to an estimate, more than 500 hours of videos per minute are being uploaded on YouTube. That makes sense since media companies and film/TV studios are joining the bandwagon to market their films and calling their trailer release as an official launch on YouTube. TV had its days when the official trailers/teasers were launched during a commercial of a successful soap opera or in the interval of films. Nonetheless, more than one-third internet users have an account on YouTube.

The reason to mention YouTube is not to write about the amazing facts, but to paint the picture about the importance of video content in the present times.

How AVD Will Work, and Why Netflix and HBO need to do some nail-biting-

AVD has YouTube like elements, yet it’s kind of a revolution in the video streaming industry because Amazon has worked against all the odds and successfully delivered what was promised at the early stages of the products’ launch. At moment, AVD has given four options to content creators to earn their royalties and pick one that suits their business model in the best way;

  1. 45 percent cut on feature ads on the videos that are free to anyone.
  2. 50 percent of the money will go to Amazon in the case of digital purchase or rental.
  3. Through the Streaming Partners Program, videos can be made available to people who pay a special add-on subscription.
  4. Content creators canearn 15 percent of per hour streamed if the content is made available to Prime subscribers.

Amazon vs Youtube

All of the options mentioned above compete with YouTube, yet they aren’t enough to wobble the base of YouTube. Over the years, Google has worked hard to create a strong authority in video streaming. Facebook has also joined the league by offering FB videos, but they are yet to create a buzz for content creators to launch their TV shows or stream episodes on their video platform.

Some of the AVD options for profit sharing are good for small media companies, but when it comes to big brands; they will probably remain away depending upon the profit they are earning by being on other channels.

Presently, the option of making a career or earning a daily load of bread by creating ad-free content works, too. However, there’s a lot behind it. You have to go through a lot of meetings with studio executives of Netflix or HBO or Showtime, chasing producers to invest in your project and pay you for doing content.

If the AVD becomes popular and content creators understand the benefits of unmatched options available with Amazon video streaming platform; views will able to see new content and new ideas manifesting virtually because there’s a lot of content that doesn’t get funding from studios. But the scenario will change, hopefully.

Besides the US, AVD is also available in Germany, Austria, the United Kingdom, and Japan.