NEWS - YouTube has another serious competitor

With some of the financial figures which get banded about in the world of social media, you could be forgiven for thinking that the numbers are so high that the winners in a particular market could easily become a monopoly as the power of one organisation gradually drowns the others.

YouTube is a typical example.   Some people could not even name another video hosting site, even though companies like Vimeo and Wistia, while Facebook and even Netflix are getting into the space to allow anyone to upload videos.  Facebook is a somewhat different platform and allows the world's best targeted advertising, while YouTube has parent Google behind it and is widely regarded as the world's second biggest search engine behind

Enter Amazon Video Direct.  With this new system - initially only available in USA - content creators will receive either 15 cents per hour streamed, or 55% of revenues from video rentals/sales, with a cap of $75,000 a year.  Other options also exist via Amazon Prime Video through the Streaming Partners Program, and so on. 

Parapex Media is keeping a close watch on developments here, and will continue to report on progress and advise its customers which system suits their requirements the best.  YouTube's model for recompensing people uploading content has been regularly criticised, particularly by respected industry observer Jason Calacanis of TWIST, and Amazon's idea of limiting revenue to $75,000 may end up as its defining point.  

Amazon has launched its Direct Video service with web publisher Mashable, media heavyweight Condé Nast and toy manufacturer Mattel.   The potential for cross-marketing with Amazon's shopping channel is one to keep an eye on.