Amazon PVD to pay royalty based on show performance

To reward content according to performance, Amazon is introducing a new payment structure for its self-publishing programme "Prime Video Direct" (PVD) that would go into effect from April 1, starting with the US.

Launched in 2016, PVD was introduced to offer content suppliers flat rate royalties of 15 cents per hour of video streamed in the US and six cents in other territories for content in Prime Video, Variety reported on Friday.

Based on the "customer engagement ranking" score noted on Amazon's site for PVD users, the new payment scheme would reward the highest performing content with higher royalty rates and reduce the rates for less popular shows.

"Starting April 1, the standard license fee for all titles made available through Amazon's 'Direct for Prime' subscription access in the US will range between four and 10 cents per hour streaming," Variety reported.

The ranking on the shows would be evaluated on several points including the number of Prime users who view the content, the time each user spends watching a title, popularity of a title, the IMDb presence and rating, box office performance as well as over all quality of the show, including posters and subtitles.

Under its existing royalty payment structure, Amazon has paid PVD content partners opting for Prime Video distribution a base rate of six cents per hour for up to 99,999 hours streamed in a 365-day window.

With the new structure, the company intends to encourage more creators to build their own brand, boost their engagement scores and create more compelling content.

Companies that are part of Amazon's PVD include Endemol Shine Group, FilmRise, Samuel Goldwyn Films among others.