In what could be a big blow to independent filmmakers, Amazon Video Direct will change the way the company compensates filmmakers who use the service to make their shows and movies available for streaming on Amazon Prime. The revenue-sharing program currently pays content owners $0.15 for every hour their content is streamed domestically in the U.S., and $0.06 for every hour it is streamed internationally. Starting March 1, royalty rates will be tiered based on the total number of streaming hours per year.
Rates will only reach $0.15/hour in the U.S. after a movie or TV episode streams for 500,000 hours. For the first 100,000 hours, the rate drops 60 percent to $0.06/hour. Between 100,000 and 500,000 streaming hours, the rates are $0.10/hour (a 33 percent drop). After a million hours are streamed, or at the end of a 365-day cycle, the streamed hours reset to zero and earnings begin again at the lowest tier of $0.06.
To the content providers’ benefit,...
Rates will only reach $0.15/hour in the U.S. after a movie or TV episode streams for 500,000 hours. For the first 100,000 hours, the rate drops 60 percent to $0.06/hour. Between 100,000 and 500,000 streaming hours, the rates are $0.10/hour (a 33 percent drop). After a million hours are streamed, or at the end of a 365-day cycle, the streamed hours reset to zero and earnings begin again at the lowest tier of $0.06.
To the content providers’ benefit,...
- 2/7/2018
- by Chris O'Falt
- Indiewire
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