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Amazon launches video service

Tuesday, May 10, 2016 - 01:29

Amazon takes on YouTube with its new service that allows users to post videos and earn royalties. Fred Katayama reports.

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Amazon.com is taking on YouTube. And bolstering its arsenal in its fight against Netflix. The retail powerhouse launched a video service that allows users to upload videos. With Amazon Video Direct, users can choose to make their videos available to view free with ads, rent or own, offered via subscription, or on Amazon Prime Video. That determines how they'll get paid. Users can earn royalties based on hours streamed on Amazon Prime. Or they'll get half of the revenue earned from rentals or sales of the videos .... or half of ad receipts if they're viewed with ads. Google's YouTube has a huge headstart with more than a billion users compared to over 50-million members on Amazon Prime. Wedbush Securities analyst Michael Pachter thinks Amazon is really going after Netflix more than YouTube, saying, "Amazon is angling to attract higher quality content. They're trying to get a lot more content. YouTube has very low quality standards." Amazon also announced that its new service will feature videos from partners such as toymaker Mattel, magazine publisher Conde Nast Entertainment, and multimedia company Mashable. This is just the latest move by Amazon to beef up its video service. Just last month, it launched a stand-alone subscription-based video service to better take on Netflix. The launch comes the same day Bernstein set a $1,000 price target on Amazon's stock, which rose sharply, catapulting above $700 to a record high.

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Amazon launches video service

Tuesday, May 10, 2016 - 01:29