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Amazon Goes After YouTube With New Online Video Posting Service (bloomberg.com)

Spencer Soper, writing for Bloomberg (edited and condensed): Amazon will let people post videos to its website and earn money from advertising, royalties and other sources, putting the company in more-direct competition with Google's YouTube. Amazon already offers movies and television programs over the Internet -- including its own original productions -- to compete with Netflix. The new product dubbed Video Direct will let Amazon give consumers more options about what to watch without an upfront fee because many of those posting videos will be paid based on how their content performs. Competing streaming services have been driving up the cost of this material. Amazon used a similar strategy to boost its inventory of electronic books through Kindle Direct Publishing, which lets authors bypass traditional publishers and reach readers directly by posting and selling their own e-books online. The Seattle-based e-commerce giant said the service is designed for "professional video producers," but its only requirements are that the videos be high definition and have closed-captioning for the hearing impaired.The company is offering 15 cents for every hour of viewing a video creator's content via Prime Video in the U.S, and six cents an hour for views outside of the U.S. Content creators can also allow Amazon to show their videos to any visitor for free. In such case, Amazon says it is offering 55 percent of all ad revenue their clips generate. Content creators can also sell their videos via its subscription service, or its rental its store -- in which case, Amazon will offer 50 percent of the revenue. YouTube has been long criticized for paying less to YouTube creators, forcing many to leave the platform, or look for alternate revenue channels.

61 comments

  1. What about Vimeo? by U2xhc2hkb3QgU3Vja3M · · Score: 3, Insightful

    There's more options out there than "YouTube or nothing".

    1. Re:What about Vimeo? by s1d3track3D · · Score: 1

      IMO, they do a great job, Vimeo is a great platform. I've found gbox.com does a great job of direct to direct sales as well.

    2. Re:What about Vimeo? by stealth_finger · · Score: 1

      Well, they didn't think the name very well. I'll get it on VD.

      --
      Wanna buy a shirt?
      https://www.redbubble.com/people/stealthfinger/shop?asc=u
    3. Re:What about Vimeo? by Anonymous Coward · · Score: 0

      After asking why Vimeo didn't pay me enough, they sent a group of people to my house to rape me. Not figuratively, literally. I called the cops after and they said there wasn't much they could do.

  2. What's a Servicex? by Anonymous Coward · · Score: 0

    Just curious. I've never seen that term before.

    1. Re:What's a Servicex? by whipslash · · Score: 1

      Fixed

    2. Re:What's a Servicex? by OakDragon · · Score: 4, Funny

      Ask your OB/GYN.

    3. Re:What's a Servicex? by almitydave · · Score: 1

      Just curious. I've never seen that term before.

      It's how you get Amazon's new Video Direct.

      --
      my, your, his/her/its, our, your, their
      I'm, you're, he's/she's/it's, we're, you're, they're
  3. Servicex by Anonymous Coward · · Score: 0

    Cervixes? Servi-sex? What?

    1. Re:Servicex by whipslash · · Score: 1

      Fixed.

  4. Amazon Prime requirement. by Anonymous Coward · · Score: 4, Funny

    "This video is reserved exclusively for prime members." - coming soon to their exciting new video service.

  5. I wonder if it'll be abused like Kindle Direct too by Anonymous Coward · · Score: 0

    Isn't Kindle Direct still broken with automated readers stealing a gross amount of revenue from legitimate authors? Who's to say the same thing won't happen here?

  6. Re:I wonder if it'll be abused like Kindle Direct by Coisiche · · Score: 1

    If the only requirements are HD and closed captioning then it shouldn't take long to knock up an hour's worth of HD black screen, with some captioned drivel, that can be endlessly "viewed" by bots.

  7. Actual news and all anyone can talk about is the.. by Anonymous Coward · · Score: 0

    ..typo.

    This really isn't a Youtube competitor, It's a Youtube Red(redtube?) competitor For Prime subscribers only, which limits the audience.

  8. What next? by Archangel+Michael · · Score: 3, Funny

    Is Amazon going to form its own "Social Networking" too?
    Is Amazon going to form its own Search Engine?
    Is Amazon going to form its own Email services?

    Doing the "Me Too" thing now, is like closing the barn doors long after the horses have left.

    --
    Agent K: A *person* is smart. People are dumb, stupid, panicky animals, and you know it.
    1. Re:What next? by U2xhc2hkb3QgU3Vja3M · · Score: 1

      They're going to start selling things over the Internet because they heard about another company that already does this, called "Amazon" or something.

    2. Re:What next? by solios · · Score: 1

      With Yahoo! looking for a buyer, someone has to pick up the slack.

    3. Re:What next? by Anonymous Coward · · Score: 0

      Is Amazon going to form its own Email services?

      It's called WorkMail.

    4. Re:What next? by Anonymous Coward · · Score: 0

      This is already in Amazon's department (Amazon Video rentals) So there's nothing new here.

      What is different is that it's trying to get original content, a la netflix rather than trying to get nothing but bloggers ranting and game footage which is all youtube is anymore in between cat videos. Youtube itself is more of a "news in the moment" platform and it's so far removed from netflix that Youtube Red is going to go nowhere.

    5. Re:What next? by Solandri · · Score: 1

      Amazon is the 900 pound gorilla in cloud server and storage services. Sites that use Amazon Web Services include Netflix, Expedia, Adobe, Pinterest, Smugmug, Reddit, Tumblr, and until recently Dropbox.

      However, their service interface is really geared for enterprises which can devote a team of IT professionals to managing it. That's why companies like Dropbox were able to successfully re-sell Amazon's cloud storage to the home and SMB user with a shiny user-friendly interface on top. A lot of us have been wondering when Amazon would wake up and clean up their interface to make it easier for the average Joe to store their files directly, instead of using a middleman like Dropbox. I've already moved my photo backup to Amazon (free unlimited photo storage with a Prime account). It used to be with Google Photo, but theirs was only free up to 2048x2048 resolution, which was ok when I started using it back around 2007 but is kinda low resolution for a photo nowadays. My video storage is still with Google Photo (free unlimited storage for videos up to 2 GB), but I'd probably transfer those to Amazon as well if they made it free with Prime.

    6. Re:What next? by Hardness · · Score: 1

      >>Is Amazon going to form its own "Social Networking" too?

      Internet Movie Database!

      >>Is Amazon going to form its own Search Engine?

      Alexa!

      >>Is Amazon going to form its own Email services?

      https://news.slashdot.org/comm... answered this one...

    7. Re:What next? by Anonymous Coward · · Score: 0

      Late to the party, perhaps... but certainly not too late.

      YouTube has been getting a TON of flak from over Fair Use as of late. I'll let you dig through that whole quagmire on your own, sufficed to say, if a better platform emerges that is willing to go to bat for it's content creators, a lot of people might jump ship.

      It's certainly possible that Amazon becomes the more "professional" option for movie critics, video game reviews, Lets Play, and other derivative works, while YouTube continues to host more amateur stuff like Keyboard Cat and Charlie Bit Me.

    8. Re:What next? by Anonymous Coward · · Score: 0

      Nobody is asking for any of those things. Youtube however has developed into a platform that no content creator wants to do business with, let alone depend on.

    9. Re:What next? by Anonymous Coward · · Score: 0

      https://aws.amazon.com/documen...
      http://www.a9.com/
      https://aws.amazon.com/ses/ & https://aws.amazon.com/workmai...

      Ok IAM isn't quite a social network, but the others seem directly comparable. All top notch products with large markets.

  9. That price point is small for professionals by Anonymous Coward · · Score: 1

    but pretty decent for homemade videos for fun.

    If a 3 minute video gets 3 million views the video creator would get $22,500 USD. Assuming it takes two people who make videos for a living 2 weeks to make and edit a video, and that they are the only two people in the video, that works out to $35 an hour per person($22,500 / 640 hours).

    1. Re:That price point is small for professionals by Anonymous Coward · · Score: 0

      Where do you get 640 hours from? There are 168 hours in a week, 336 hours in two weeks. Your assessment is that those two people would have to work 21.7 hour days for two weeks to make said video?

      How about two people working an 8 hour day to make a video, and give them a 5 day work week, to show a more realistic take. Now it's $22,500/160 hours which comes out to $140 per hour.

      Also, from the quality of 3 minute videos I've seen on Youtube, I doubt that they require that much effort on average.

  10. Re:I wonder if it'll be abused like Kindle Direct by 110010001000 · · Score: 5, Funny

    So it is a competitor to CNN and Fox News?

  11. Re:I wonder if it'll be abused like Kindle Direct by PvtVoid · · Score: 1

    So it is a competitor to CNN and Fox News?

    Oh, for some mod points....

  12. Too late by LichtSpektren · · Score: 3, Insightful

    Everybody's already uploaded everything to YouTube, and the service is really good--all you need is an adblocker and it's just about perfect. Why would anybody switch to Amazon?

    1. Re:Too late by Ferocitus · · Score: 2

      Everybody's already uploaded everything to YouTube, and the service is really good--all you need is an adblocker and it's just about perfect. Why would anybody switch to Amazon?

      Because your MySpace friends told you that's where all the cool AOL people hang out?

      --
      USB, USB, USB!
    2. Re:Too late by Anonymous Coward · · Score: 0

      ContentID.

    3. Re:Too late by Anonymous Coward · · Score: 0

      Maybe because content channels that have the ads enabled thinks Youtube is not doing enough to stop people from watching their videos without anything in return?

    4. Re:Too late by Anonymous Coward · · Score: 0

      Maybe to get more valuable comments, vs "I make $3653 dollars a week" spam.

      Amazon commenting system and users > Youtube commenting system & users.

      I think we're over the "it's about the hit count" and moving more into real CRM/data mining.

    5. Re:Too late by Anonymous Coward · · Score: 0

      No it's not.
      The pathetic bitrate totally kills the image quality. Try recording a POV video and upload it to youtube. No matter what format, compression or bitrate you use for your original video, the converted youtube copy will look like shit - all blocky and smudged.

      Certain types of video simply require 20-30Mbps bitrate.

    6. Re:Too late by tepples · · Score: 1

      Certain types of video simply require 20-30Mbps bitrate.

      Yet DVD is limited to 9 Mbps including audio, and that's using a video codec two generations older than what is commonly used for Internet streaming video. DVD uses MPEG-2, when H.263-class codecs (Sorenson Spark, DivX, Xvid, Theora) and H.264-class codecs (incl. VP8) have followed it. Does a POV video "require 20-30Mbps bitrate" even in standard definition?

  13. Re: I wonder if it'll be abused like Kindle Direct by chaboud · · Score: 1

    Oh.

    My.

    God.

    Shut Slashdot down, people... We have a winner.

  14. Marketing by Anonymous Coward · · Score: 2, Funny

    Oh boy, a service with a 5 syllable name that shortens to "VD". That should help with consumer uptake. "I got VD and I want to share it with all my friends!"

  15. Amazon needs hooks for Prime by Anonymous Coward · · Score: 0

    "This video is reserved exclusively for prime members." - coming soon to their exciting new video service.

    It's likely that bundling more benefits with Prime membership is very much on Amazon's minds, because Prime Video suffers terribly from a very poor selection of titles outside of USA. It's so bad that it becomes a strong reason for terminating your subscription once you've exhausted the short list of first-rate Prime films and lose interest in checking out obscure 2nd-rate ones.

    The problem is simple: Amazon became too greedy, and doesn't ever put the best selling titles on Prime, not even in their limited period set. This makes Prime Video very disappointing unless you are happy to fill in with high-priced non-Prime titles. (It's mostly a problem outside the US, where Prime titles are far more restricted and largely mediocre.)

    They could fix this by being less greedy and offering more blockbusters on Prime, but being less greedy isn't a core Amazon skill so they're probably looking for something cheap that could become a hook for Prime subscribers --- idea, user-created content!

    1. Re:Amazon needs hooks for Prime by cayenne8 · · Score: 1

      Prime Video suffers terribly from a very poor selection of titles outside of USA.

      The selection INSIDE the US sucks pretty badly too.

      I find that Prime Video, has much less than Netflix, and any newer or popular movies, the few that are on Prime, are also on Netflix.

      I have Prime due to the shipping benefits and the occasional free ebook rental....and I have Prime all my viewing computers, tablets, phones and TVs....but I rarely watch the Prime option.

      That being said, Prime IS one of the pieces I'm looking at for cutting the cord.

      I don't have a good OTA external antenna yet, so my first step will be cutting Uverse back to only HD basic...local channels (with DVR on it too). That will be about $30/mo.

      I'm then looking to maybe try the Slingtv service, to get the cable channels I'd miss...CNN and Fox news channels (try to get left and right sides, I'll miss MSNBC for the far left slant if I cut the cord tho)....the Slingtv streaming service indeed looks interesting. You have options to get most of the ESPN channels for an extra $5 a month...which I only watch during College Football Season. Anyway, for the most part Slingtv will be only $20-$25mo. Going to this route will save me about $55 a month from my Uverse U200 package I currently have.

      Anyway...I already have Netflix, Prime Video, YouTube, and maybe soon SlingTV that I can watch on main TVs and other devices.....soon, I look to maybe get a good OTA external antenna and cut even the Uverse Basics package...but I gotta either look to a commercial DVR solution, like Channel Master or maybe look into MythTV again, which I dabbled in awhile back that worked VERY well with OTA stuff.

      But, back on topic. I have stuff on YouTube, I might try it on the new Prime system too and see which makes more $$.

      --
      Light travels faster than sound. This is why some people appear bright until you hear them speak.........
  16. Re:I wonder if it'll be abused like Kindle Direct by FlyHelicopters · · Score: 1

    Oh, for some mod points....

    Oh my lord... quoted for so much truths! :)

  17. Per minute of viewing? by Overzeetop · · Score: 1

    Ugh, I really don't need longer videos. It's a shame intros and filler are being incentivized.

    --
    Is it just my observation, or are there way too many stupid people in the world?
  18. Seems like it would not work by pablo_max · · Score: 2

    When I think of Amazon, I think of buying stuff online. Perhaps even the upcoming new Top gear.
    I cannot imagine thinking...hey.. I'll go to amazon a look at lol catz.
    There is no way they can compete with youtube. Just like there was never any chance that google+ was going to take off. People think of Google as the place to go to search for what you want or to get your email, but not to post social media.
    Same is true for Amazon and personal content.
    Hell, I am even a Prime member and have not watched a single show their site. Why? Because while they have loads of shows, nearly everything I want to see is "extra" and I will never pay 3 dollars to watch a single episode of a TV show. Ever.
    Maybe if it was like 10 cents, but 3 bucks? Nope.
    And most folks I know think the same.
    Youtube for random videos and Netflix or Hulu for streaming.
    Though... I would use amazon to buy the router I would use to connect to those other services.

    1. Re:Seems like it would not work by Anonymous Coward · · Score: 0

      Comparing this to Google+ isn't really correct, is it? There is less barrier to competing with YouTube. If you send me a link to a funny video, it doesn't matter what site it is on, I click and watch and generate ad revenue.

      Google+ had to compete with the fact that you can't just leave Facebook and join Google+ because every once else is already on Facebook and isn't moving.

      I'm not saying it will be successful. I'm just saying the barrier to competition is not the same.

  19. Amazon Video Direct service Url by s1d3track3D · · Score: 1

    It really pisses me off when there is a breaking news story talking about something which launches today yet there is no link to the actual service! https://videodirect.amazon.com... <note>If I missed the link in the article disregard rant, thanks</note>

    1. Re:Amazon Video Direct service Url by s1d3track3D · · Score: 1

      Possibly, Venture beat would have been a better submission. http://venturebeat.com/2016/05... additionally the story follwing that is "Pornhub launches bug bounty program with rewards ranging from $50 to $25,000", which could be useful knowledge for some around here.

  20. Vimeo Guidelines rule out several uses by tepples · · Score: 3

    Vimeo's guidelines reject certain categories of video entirely.

    • "Upload only videos you created yourself" rules out videos created by a minor child or videos uploaded by someone acting on behalf of an author without unmetered or at least 100 GB/mo broadband.
    • Users may "showcase your creative work" but not "upload videos with a commercial intent". The guidelines don't make it easy to tell where Vimeo draws the line between the two.

    But some older restrictions appear to been loosened:

    • For six years (July 2008 through October 2014), the Vimeo guidelines also stated "No screen-captures of video games or gameplay videos", which meant video game reviews must be posted to a service other than Vimeo.
    • Until recently apparently, users of iOS and Android were blocked from viewing the video unless the uploader subscribed to Vimeo Plus at the time of the upload.

    You mentioned plural "more options out there". Which of said "more options" fills these gaps in what Vimeo allows users to post?

    1. Re:Vimeo Guidelines rule out several uses by U2xhc2hkb3QgU3Vja3M · · Score: 1

      You mentioned plural "more options out there".

      I'm not into posting videos on the Web, so while I'm pretty sure there's more out there than YouTube, Vimeo and Vine, I can't really name any without searching.

    2. Re:Vimeo Guidelines rule out several uses by farble1670 · · Score: 3, Insightful

      I'm not into posting videos on the Web, so while I'm pretty sure there's more out there than YouTube, Vimeo and Vine, I can't really name any without searching.

      Fascinating addition to the thread. Keep up the good work.

    3. Re:Vimeo Guidelines rule out several uses by Alzheimers · · Score: 1

      There's also DailyMotion.

      Never heard of it? Exactly.

  21. Thank you! Mod Up. by SuperKendall · · Score: 1

    Not only was there no link to the service in the summary, there was not a single link in the article that was linked to!

    How can we even have a discussion without knowing the details of the service.

    Like for instance the unmentioned million dollar bonus for the top 100 videos in addition to the stated streaming payments...

    --
    "There is more worth loving than we have strength to love." - Brian Jay Stanley
    1. Re:Thank you! Mod Up. by s1d3track3D · · Score: 1

      Like for instance the unmentioned million dollar bonus for the top 100 videos in addition to the stated streaming payments...

      Man, I didn't even see that! Thanks

  22. Blame the right one: RIAA labels and MPAA studios by tepples · · Score: 1

    What makes you think the established record labels and movie studios won't patrol Amazon's service at least as harshly as they patrol YouTube?

  23. Jeff Bezos's Butthole!!! by Anonymous Coward · · Score: 0

    Can I lick it?

  24. Do I like Amazon? by no-body · · Score: 1

    NO

  25. Android by farble1670 · · Score: 1

    Can I watch Prime Video on my Android device yet? Oh ...

  26. Painful by Anonymous Coward · · Score: 0

    I thought I would try this out. It asks me for my bank information and tax information before I can even post a video. Then it won't let me upload unless I create "Art" for 16:9 and 3:4 dimensions. This is not geared towards the typical YouTuber - this is geared towards professional video people.

  27. Re:Blame the right one: RIAA labels and MPAA studi by Anonymous Coward · · Score: 0

    Amazon can fully comply with the DMCA without implementing the abusive system Youtube created for their business partners. There is no need for a fucking take-down API that bypass the notice system, and there certainly is no need for proactive server-side scanning and automated take-downs.

  28. Google pooping too much in their own nest by Tough+Love · · Score: 1

    Youtube ads went beyond annoying long ago. They should have known this would be inevitable, after all they are smart people according to them. Nice to see Amazon sticking it in where it hurts.

    --
    When all you have is a hammer, every problem starts to look like a thumb.
  29. Re:Blame the right one: RIAA labels and MPAA studi by tepples · · Score: 1

    there certainly is no need for proactive server-side scanning

    As I read 17 USC 512(i)(1)(B), it requires providers taking advantage of the DMCA's safe harbor to "accommodate[...] standard technical measures", such as automatic identification of works whose copyright is often infringed, so long as said measures do "not impose substantial costs". What did I miss?

    and automated take-downs.

    Automated notices of claimed infringement wouldn't be quite as necessary if service providers blocked reuploads of the same work after having received "actual knowledge that the material or an activity using the material on the system or network is infringing" per 17 USC 512(c)(1)(A). When a service provider takes a work down upon notice of claimed infringement, the same work often remains available on the same provider at other URLs, even if the notice specifies that no accounts on that provider have been licensed to use a particular work. In addition, the work often doesn't stay down when either A. another user reuploads the work, or B. a user whose account had been terminated for repeat infringement creates a new account and reuploads the work. Only proactive or automated systems can make a dent in that sort of infringement.

  30. If they can match YouTube's volume, this is huge by Alzheimers · · Score: 1

    My son and I make YouTube videos as a hobby, and in an average month we'll get around 15,000 hours per month of views. $0.15 per hour would be about 10x what YouTube's AdSense currently pays for those views.

    If they can match YouTube's sheer volume, or even within an order of magnitude, this is a no-brainer for hobbiest content producers. I like YouTube overall, so if the only effect is that it raises AdSense's payout to compete, then it's a win-win.