Amazon.com Inc. (NASDAQ:AMZN) on Tuesday announced to launch a new video service that allow people to post videos and earn money from different ways, intensifying its competition with Alphabet’s YouTube.
The new service is called Amazon Video Direct. Video creators can upload original or their own licensed videos to the new Video Direct service. They can earn money and get paid in many ways. For example, video creators can sell or rent their programs on Amazon, make videos free to all Amazon customers with ads or offered through a subscription channel and get royalty payments based on how many times the content is streamed.
The service is challenging Alphabet’s YouTube, which has more than 1 billion viewers and generate billions of dollars a year. YouTube has the similar service called YouTube Red, which allow people to provide free video with ads or offer as an add-on subscription.
The Seattle-based e-commerce giant said the service is available in United States, Germany, Austria, the United Kingdom and Japan and service is designed for “professional video producers”. Partners include Conde Nast Entertainment, HowStuffWorks, Samuel Goldwyn Films and Pro Guitar Lessons. Content from these providers can be found now on Amazon Video.
In 2014, Amazon acquired the live-streaming site Twitch for about $1 billion to compete with YouTube over video-game streaming. The company also competed with Netflix Inc. by offering movies and television programs over the Internet.
“We’re constantly looking for ways to enable content creators to find an engaged audience and to make it easier for customers to discover great content,” said a spokeswoman.
Amazon shares rose 2.8 percent to $699.12 at 12:11 p.m. in New York.