Amazon Wants to Become a YouTube Competitor




Well, it looks like Amazon has their eye on growing their video service into a YouTube competitor. According to a report from CNBC Amazon is reportedly ramping up its digital video ad play in an effort to attract content produces from YouTube to Amazon.

Amazon is hoping to attract frustrated YouTube creators who are struggling with the so-called ‘Adpocalypse’ after advertisers pulled their ads for fear of having them appear next to objectionable content. This has seen many YouTube creators see revenue plummet recently. Amazon is hoping to implement new tech that would prevent ads from running against inappropriate content to attract advertisers that left YouTube.

Amazon already owns Twitch and operates Amazon Video Direct (AVD) a service that allows anyone to post and monetize video content via ads, rentals, purchases, and subscriptions. Amazon has also recently struck deals with several YouTube stars to make original content for Amazon.

Amazon has a long ways to go as Google’s YouTube has nearly four times as many monthly active users as Amazon. Yet digital video advertising is a $13.23 billion business so far this year according to eMarketer. 21.7% of that comes from YouTube and Amazon wants to become a bigger player in a market that currently makes over $13.23 billion.

There is also likely another part to this. Recently the relationship between Amazon and Google seems strained. A few weeks ago Google pulled their YouTube app from Amazon’s Echo Show with no warning and has yet to state why they pulled the app. Amazon may also be trying to ensure that if Google pulls the YouTube app from other Amazon devices that they have a backup plan to keep customers happy.

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