On May 10, 2016, Bloomberg reported that Amazon was looking to move in on YouTube’s share of the market in Video Posting services.
At first, it might seem like this is a great development and its nice to see YouTube finally getting some serious competition. Check out the Digital License Agreement for “Amazon Video Direct”
YouTube does not force content creators to provide closed captioning for their content. However Amazon will not let you distribute on their platform otherwise. This could be costly for some content creators.
“You will deliver closed captions for all Titles in accordance with Amazon’s technical specifications, but in any event, in accordance with applicable law. You may not be able to publish a Title via one or more Distribution Modes until Amazon has received closed captions from you.”
Amazon will pay you 55% percent of the net advertising receipts for ads played on your content. That right there blows YouTube out of the water.
Amazon will pay you 55% of Net Advertising Receipts. “Net Advertising Receipts” means aggregate cash amounts collected by Amazon from the sale of advertisements against any Title for Ad-Supported Access during the quarter for which License Fees are being calculated, less 15% of that aggregate cash amount (which is deemed to reflect the cost of selling advertisements) and less any payments made to any third-party advertising platforms or networks in connection with the distribution or sale of advertisements on those platforms or networks.
If someone purchases your content?
– Amazon will pay to you 50% of the applicable Purchase Price.
Sounds pretty good so far doesn’t it?
From the wording of the agreement, it would seem Amazon will retain a lot of control over the content you choose to make available on the platform.
Amazon will control your distribution and will control how much income you can make. I find that the compensation is more robust than what YouTube is currently offering, however Amazon will retain control over digital distribution.
So what real options for monetization do we have? Deal with YouTube’s tyrannical control over speech and ad revenue? Or do we trade that in for Amazon who will most likely also dictate what is or isn’t considered “Not Advertiser Friendly”?
Please share your thoughts in the comments.