Amazon has launched a new-ad supported video service similar to You Tube on which anyone will be able to upload clips. The feature known as ‘Video Direct Service’ allows Amazon account holders to upload their original or their own licensed videos there.
Amazon said that it is up to the users to decide whether they want their videos to be free to everyone, available on rent or own, offered through a subscription channel on behind Amazon’s $99-a-year Prime paywall.
The step has intensified Amazon’s competition with Google. Also, it shows that Amazon wants to transform itself into a multimedia powerhouse. Amazon has been working on strengthening its video offerings with original content and exclusive deals with HBO and Epix.
Last month, Amazon targeted Netflix by offering its streaming video service on month-by-month subscription a dollar cheaper than its rival. This time, it has Google in its mind. Experts think that it would not be an easy and will be an uphill battle as You Tube is quite popular media forum.
But it seems that Amazon has plans. It is aiming to attract news users by providing the free video service and persuade them to buy Prime subscriptions. Amazon said that through Video Direct, it is targeting ‘creators and storytellers’ providing them a cost-effective way to stock-up on professionally made video other than purchasing licensed content.
Amazon will make the video available through its video app on mobile devices, set top boxes and on its website. As per the company, it would keep 45% of revenue it takes from ads appearing during free broadcasts. It will also keep 50% of revenue from channel subscriptions and video purchases or rentals.
The new Video Direct Service will be available to anyone, but Amazon has right to block videos with content that would be found inappropriate.