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Amazon launches new streaming service Video Direct to compete with Youtube

| May 12, 2016 10:44 AM EDT

A picture shows the logo of the online retailer Amazon dispalyed on computer screens in London on December 11, 2014.

Amazon has launched new video streaming service Video Direct which aims to attract professional and ordinary users to upload and publish their videos through the platform. Videos of registered users will be featured on Amazon’s Prime Video streaming service, where they have the option to create subscription channels or offer them as one-time purchases.

According to The Independent, video creators can profit from Video Direct by receiving a percentage taken from the fees paid by Amazon Prime subscribers, and also through advertisements (like Youtube), subscriptions, rentals, and purchases. Part of the new streaming feature allows publishers to choose whether or not videos will be uploaded to Amazon’s Prime service, which means that the videos will be available for free should they choose not to.

The sign up process for Video Direct is a bit more complex compared to rival company, Youtube, CNET reported. Amazon has made the button to sign up available on its site, but the company requires potential uploaders to set up payments for their sales and also send their tax information.

The company, according to an Amazon spokesperson, is always seeking for ways to allow content producers “find an engaged audience” so customers can find “great content” easier. The launch of Video Direct can make for an interesting competition against fellow streaming giants such as Netflix and Hulu since the company have revealed their plans to increase their budget on the service this year.

Subsequently, Video Direct also signals a challenge with Google’s parent company, Alphabet. With Amazon’s new streaming service entering the scene and putting pressure on Youtube, it is going to be an interesting couple of months for the feuding tech companies. But since Youtube has already made its marked on the video streaming service, time can only tell whether or not Video Direct can keep up.

For this service, Amazon has partnered with multiple companies including The Guardian, How Stuff Works, Conde Nast Entertainment, Samuel Goldwyn Films, Mattel Jash, Baby Einstein, Kino Nation, Pro Guitar Lessons and Machinima.

For more information about Amazon’s Video Direct, watch the clip below:

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