YouTube killer? Amazon's latest offering bursts into the market

Will Amazon's latest content service prove to be a strong YouTube rival?

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Can Amazon Video Direct prove as popular as Prime Video?

Not content with Amazon Prime and Instant Video, Amazon has launched another online video service which may prove to be an effective YouTube rival.

Amazon Video Direct will allow content creators to upload footage and earn royalties, but does not use the same business model as Google-owned YouTube.

Rather than paying contributors based on ad impressions for standard accounts -- or pay-per-view through the ad-free YouTube Red subscription service -- Amazon Video Direct will pay content creators based on hours streamed by Prime members, rental revenue shares, purchases, monthly subscriptions or ad impressions.

Content creators can opt for some, or all, of these potential revenue streams, which may appeal to those looking for an outlet beyond YouTube.

If you upload content to the new video streaming platform, this content will be available wherever Amazon Video is available, namely, the US, UK, Austria, Germany and Japan.

"With performance metrics such as minutes streamed, number of subscribers, projected revenue, and payment history, you can optimize the way you offer and promote your titles," Amazon says.

Amazon Prime Video paved the way for Amazon to be known for more than groceries and shopping and managed to catch the interest of producers and professional content creators through investment in titles which may not otherwise have seen the light of day.

However, if Amazon wants to become a strong contender for the video streaming crown, the e-commerce giant needs to lure YouTube stars to the fold -- and plans to do so through a bonus scheme.

The company will distribute a share of $1 million per month to the Top 100 titles included with Prime through Amazon Video Direct.

This share will not be divided equally to the best content uploaders. Instead, the bonus is "based on global customer engagement." In other words, the more you earn through fans streaming your work, the bigger slice of the pie you will receive.

"It's an amazing time to be a content creator," said Jim Freeman, Vice President of Amazon Video.

"There are more options for distribution than ever before and with Amazon Video Direct, for the first time, there's a self-service option for video providers to get their content into a premium streaming subscription service. We're excited to make it even easier for content creators to find an audience, and for that audience to find great content."

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