Amazon’s Prime Video Direct Is Cutting Royalty Fees for Low-Engagement Content (2024)

Amazon is rejiggering the payment structure for its Prime Video Direct self-publishing program to reward the highest-performing content with higher rates — while reducing royalty rates for less-popular titles.

Starting April 1, 2019, the standard license fee for all titles made available through Amazon’s Prime Video Direct for Prime subscription access in the U.S. will be paid according to a new mechanism. Those rates will range between 4 and 10 cents per hour streamed in the U.S. on Prime Video, based on a calculation of the relative “customer engagement ranking” score for each TV show or movie, according to a notice on Amazon’s site for PVD users.

So what does Amazon’s “customer engagement ranking” mean? It’s not totally clear, except that what the company dubs “CER” will be calculated on a per-month basis, representing a percentile ranking of a title’s level of engagement with Prime customers in relation to other titles published via Prime Video Direct.

In an article on its site, Amazon says CER takes into consideration multiple data points which can include: number of unique Prime customers (current and new) who view the title; time each customer spends watching a title; popularity of a title based on “notable talent,” “an IMDb presence and rating” and box-office performance; and overall quality (e.g., whether a title has compelling and high-quality poster art, accurate metadata, localized subtitles).

Under its existing royalty-payment structure, Amazon has paid Prime Video Direct content partners opting for Prime Video distribution a base rate of 6 cents per hour for up to 99,999 hours streamed in a 365-day window. That steps up to 10 cents for 100,000–499,999 hours; 15 cents for 500,000–999,999; then back down to 6 cents/hour streaming for titles delivering over 1 million hours over a one-year period.

Why the change? The ecommerce giant’s new royalty structure for Prime Video Direct is aimed at rewarding content providers that publish compelling content. Amazon is encouraging content owners who participate in the program to build their own brand and publicize their titles to boost their engagement scores, listing best practices for doing that in the help section for the Prime Video Direct.

An Amazon rep confirmed the changes to the Prime Video Direct program and referred to the site’s FAQs for more info.

Companies that have participated in Amazon’s PVD include FilmRise, Endemol Shine Group, Samuel Goldwyn Films, Funny Or Die, Indie Rights, and the Young Turks. Amazon also has brought dozens of films from festivals to Prime Video through PVD, via its Film Festival Stars program (which also has included one-time cash bonuses to filmmakers and content owners).

Initially, when Amazon first launched the program in 2016, it offered content suppliers flat-rate royalties of 15 cents per hour of video streamed in the U.S. (and 6 cents in other territories) for content in Prime Video.

What’s not changing: PVD content providers that opt to make their titles available for rent of purchase on Amazon will receive 50% of net revenue. In addition, Amazon’s standard offer for PRV participants who want to sell subscriptions on Amazon Channels is a 50% revenue share (although the company negotiates more favorable splits with larger media companies).

Amazon’s Prime Video Direct Is Cutting Royalty Fees for Low-Engagement Content (2024)

FAQs

Does Prime Video pay royalties? ›

Prime Video customers pay in local currencies, but we pay your royalties in the default currency of your bank account's location (except Brazil). For supported locations, please see Electronic payments. We issue payments approximately 90 days after the end of the month in which the revenue event occurred.

Why is Amazon charging extra for Prime Video? ›

Prime Video Channels do not form a part of your Prime subscription. They are additional, paid subscriptions that allow you to add the content you want from third-party premium networks and other streaming entertainment channels.

How much does Amazon Prime Video Direct pay? ›

Content providers receive 50% of net revenue for titles that are available to buy or rent. For more information, see Compensation details. The account setup has four parts. Link your existing Amazon account or create one to use with Prime Video Direct.

Why do I pay for Prime Video and still have to pay for movies? ›

Some titles are available to purchase or rent for an extra charge in addition to any titles you may have access to with your Amazon Prime or Prime Video membership. Purchases from the Prime Video store that are not Included with Prime are automatically charged to your 1-Click payment method.

How does Amazon KDP royalties work? ›

KDP offers a fixed 60% royalty rate on paperbacks sold on Amazon marketplaces where KDP supports paperback distribution. Your royalty is 60% of your list price. We then subtract printing costs, which depend on page count, ink type, and the Amazon marketplace your paperback was ordered from.

How does Amazon Prime Direct work? ›

With Prime Video Direct, you can make your content available to buy or rent on Prime Video in the U.S. and other locations—on all supported devices—Fire TV, phones, tablets, game consoles, Smart TVs and from the Web.

How do I get rid of Prime Video charges? ›

Cancel Your Prime Video Channel Subscription
  1. Go to Manage Your Prime Video Channels and select Prime Video Channels.
  2. Find the subscription that you want to cancel.
  3. Select Cancel Channel and confirm.

When did Amazon start charging for Prime Video? ›

Amazon included Prime Video in the subscription. Amazon first introduced an internet video service in 2006 (Amazon Unbox) but added the perk of free access to “unlimited, commercial-free instant streaming of more than 5,000 movies and TV shows” to paying Prime members in February of 2011.

How do I stop Amazon Prime video from charging? ›

Cancel My Prime Video Subscription
  1. Go to Account & Settings, then select the Your Account tab.
  2. For a Prime Video-only subscription, select End Subscription. Prime Video is also included with an Amazon Prime membership - to cancel an Amazon Prime membership, under Prime Membership, select Edit on Amazon.

Does Amazon Pay content creators? ›

Content creators participating in the Amazon Influencer Program earn affiliate commissions from Amazon for qualifying purchases.

How does Amazon Prime pay filmmakers? ›

The season price is reduced by the amount the customer has already spent on previous episodes. You will receive 50% of net revenue for the episode and season purchases. We issue payments approximately 90 days after the end of the month in which the revenue event occurred.

Who is the content provider of Amazon Prime Video? ›

The service primarily distributes films and television series produced by Amazon Studios and MGM Holdings or licensed to Amazon, as Amazon Originals, with the service also hosting content from other providers, content add-ons, live sporting events, and video rental and purchasing services.

Is Amazon Prime Video not free anymore? ›

You can also sign-up for Prime Video on its own for $8.99 per month, however, you won't get the other benefits that come with Prime—like free One-Day Delivery and Same-Day Delivery on eligible orders and fast grocery delivery and pickup.

Why is Amazon charging me 4.99 a month? ›

The charge may appear on your bank statement as Amazon Digital Svcs. Its digital services arm includes things like music streaming, eBooks, software, additional television channels that you can tack onto your Prime video membership, and much more.

Why am I being charged for Amazon music when I have Prime? ›

You're not being charged for "amazon music". You're being charged for "Amazon Music Unlimited" and that's not covered by Prime. Prime gives you access to Amazon Music Prime which is an entirely different service to Amazon Music Unlimited.

Is anyone making money on KDP? ›

But the good news is that, yes, it is possible to make substantial passive income by selling eBooks on Amazon KDP. It is just a matter of putting yourself in the best position by knowing what strategies work and following them.

How do I earn royalties from Amazon KDP? ›

This article will extensively guide you through the steps by which you can make money on Amazon kdp.
  1. About Amazon kdp.
  2. How to Make Money on Amazon kdp. Writing Your Book. Choose your desired category. Choose a title and subtitles for your book. Write, write and write!!! Edit, format and proofread. Make a killer book cover.
Jul 4, 2022

Does it cost money to publish on KDP? ›

KDP allows you to self-publish eBooks, paperbacks, and hardcover books for free. We give you direct access to your book on Amazon, and allow you to create a product detail page for your book.

How do I sell content to Prime Video? ›

Create a standalone title
  1. Sign in to the Prime Video Direct website, and then click Your Videos.
  2. Click the Standalone tab.
  3. Click Add Title.
  4. In the Title box, enter a name. ...
  5. In the Category list, select a category that matches the content you're submitting. ...
  6. Select a Title Metadata Language. ...
  7. Click Continue.

How does Amazon use direct selling? ›

Seller Central serves as a personal storefront housed in the Amazon ecosystem, which means you're selling direct to consumers. With over 50% of U.S. e-commerce sales happening on Amazon, Seller Central allows you to reach the consumer in a channel they prefer … at the full retail price of your product.

How do I submit a script to Amazon Prime? ›

Submitting your script to Amazon Studios is as simple as going to the Storywriter dashboard and clicking the three dots on the script you want to submit and choosing, “Submit to Amazon Studios”. Does Amazon want to hear your story, idea, and script even if you're not a professional?

Is Prime Video charging? ›

Current Amazon Prime membership pricing: $14.99 per month. $139 per year. Prime Video membership is $8.99 per month.

What happens if you delete a Prime Video purchase? ›

Choose a reason for the cancellation from the drop-down menu, and then click Cancel This Purchase. After the cancellation is complete, your refund is issued to the payment method used for the order. The video is also removed from "Purchases & Rentals" in "My Stuff" as a part of the refund process.

How much does Amazon Prime cost 2023? ›

How to prepare for Amazon Prime Day 2023. First things first: Make sure you actually have an Amazon Prime membership. You can sign up for a 30-day free trial, after which your membership will cost $14.99 per month or $139 per year.

Is Netflix free with Amazon Prime? ›

Summing Up. Sadly you cannot get a free Netflix subscription with your Amazon Prime account. However Amazon Prime does give you access to watch Amazon Prime Video as one of the many perks of an Amazon account.

Is Prime Video good value? ›

Prime Video has a lot to offer, especially when compared with some of the other top streaming services. When you compare Prime Video's price, it stacks up well against services like Netflix and Hulu. It costs $9/mo., compared to Netflix, which ranges from $10/mo. to $20/mo., and Hulu, which starts at $8/mo.

How many content creators make over 100k? ›

While annual earnings remain relatively low for most of the creators with about 50% earning only up to $5,000 per year, about 17% earn between $30-100,000 per year, and 7% making over $100,000 per year (a huge jump compared to 3% in 2021).

How much do small content creators make? ›

The average salary for a content creator in the United States is $61,988. Content creator salaries typically range between $38,000 and $99,000 a year. The average hourly rate for content creators is $29.8 per hour. Location, education, and experience impacts how much a content creator can expect to make.

Where do content creators make the most money? ›

Brand deals. Partnering with brands for sponsored content is the most widespread way for creators to make money. Depending on the size and engagement of an influencer's following, they can get paid hundreds of thousands of dollars (or even millions) to advertise products or services.

Do filmmakers get royalties? ›

Royalties are usually paid to the owners or patentee of an artistic piece of work. So producers do not get royalties in the sense that royalties are usually not available to them. But they do get back-end payments on profits in case the film gets syndicated by companies like Netflix, Amazon, and such.

Does Amazon own Prime Video? ›

Amazon Prime Video, part of the Amazon Video on-demand internet video service, provides a selection of original content and licensed movies and TV shows that can be streamed or downloaded as part of the Amazon Prime subscription.

Is Prime Video part of business Prime? ›

Note: Business Prime does not include Prime Video or Prime Music. To edit your Amazon Prime Membership: Log into your business account.

Is Prime Video a provider for HBO Max? ›

However, HBO Max is back on Amazon's streaming service as a new channel add-on for Prime Video members.

Why are some prime videos not free? ›

A Prime membership only entitles you to view, for free, a select catalog of videos included with the subscription. It is a subset of Amazon's entire video catalog (all of which are referred to as 'Prime Video'). Inclusion with Prime depends on a contract with the distributor, therefore, content also comes and goes.

Is Prime Video better than Netflix? ›

Amazon Prime Video has a larger overall library than Netflix, and it has more movies as well. You can also buy and rent movies and TV shows through the same interface, which isn't an option on Netflix. Both services create original content, but Netflix has the edge.

What is actually free on Amazon Prime? ›

You'll be enrolled in the free trial of Amazon Prime and have access to FREE Two Day shipping, Prime Video, and Prime Music. For more information about Amazon Prime, go to Amazon Prime Terms & Conditions.

Do streaming services pay royalties? ›

Who is paid: "Music streaming services usually do not pay artists directly. In most cases, they pay the artist's record labels, publishers, distributors or collecting societies which then pay the artists according to their individual agreements.

How do shows make money on Prime Video? ›

Several countries have created their original shows for Prime Video and are being broadcast with a lot of viewership. Prime Video earns money in multiple ways that include a combination of earnings from advertising, subscriptions, and rental services. The entire setup can be divided broadly into two segments.

Does Amazon pay royalties to artists? ›

You earn a royalty on every product sold. Your royalty is based on your product's purchase price less any applicable tax, and less Amazon's costs.

How much does Amazon pay in royalties? ›

After a customer purchases a hardcover book on Amazon and a copy is manufactured for the order, a royalty is paid out. The royalty given is 60% of the listed price, minus printing costs (page count, ink & marketplace).

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