Amazon unveiled is now going to challenge YouTube with its new video service launched on Tuesday. Amazon Video Direct Service allows its content creators and visual storytellers to post their video clips to get benefited out of royalties and advertising in return. Inc. is widening its on growing rivalry with the Alphabet Inc.’s Google across online video.

Amazon account holders can now upload videos made by them or their own licensed videos to the Video Direct service. Creators can choose how their uploaded videos are view-able through this service. They can make it free for all or earn revenue on ads. They can also make the stuff available for rent or purchase offered through a subscription channel or for Amazon’s $99 Prime package.

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“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,” said Vice-President of Amazon Instant Video, Jim Freeman in a statement.

“We’re constantly looking for ways to enable content creators to find an engaged audience and to make it easier for customers to discover great content,” Amazon’s spokeswoman said.

According to Wedbush Securities analyst Michael Pachter, the company annually spends about $3 billion on streaming video content. With this service Amazon aims at capturing new users and make them to buy Prime subscriptions and content for their devices.

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The company will make the video available through its video app on Mobile devices, set-top boxes such as Roku or on its website. Like YouTube, Amazon would take 45% of revenue from ads and 50% of revenue from the channel subscriptions and video rents or purchases.

The company would pay content holders 15 cents for each hour of ad-free prime videos in US and 6 cents overseas. Amazon also said that it would block all the inappropriate content of the videos like porn, software algorithms etc.

However, Amazon’s tough competitor Google last year announced YouTube Red, a paid for subscription video service without ads and earlier this month few reports stated that it is planning to offer a bundle of channels of online video and Live TV channels for $35.

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The new Video Direct Service is launched with the videos, Toy maker Mattel Inc., Web Publisher Mashable Inc., Media conglomerate Condé Nast Entertainment are among the launch partners.


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