YouTube star Michelle Phan recently partnered with Amazon to bring her Icon Network app to Amazon’s Fire TV platform. She isn’t the only vlogger to produce content for the newish platform (Gadget vlogger Andru Edwards is another), but she is by far the most prominent. It’s not surprising that the beauty mogul is experimenting with a new distribution platform, as she was one of the first to discover the potential of YouTube. Furthermore, Vloggers have griped for the past few years that YouTube does not deliver the profits they believe they deserve.

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L2’s latest study on the Winners and Losers of Digital Media finds that while YouTube is a leader in reach with an audience of 1.3 billion, Amazon has made to the most exclusive group of digital media companies. The One Percent (ESPN, Apple, Amazon) of media companies have succeeded on two fronts: reaching a huge audience and creating content that people are willing to pay for. Called a “sleeping giant” in the L2 media study, Amazon has a large paying audience and has generated more than $1 billion in ad revenue in 2014.

How did Amazon become winner in media? It has leg up in scale with consumer data, and is highest up in the transaction food chain with more than 240 million. It has also made investments in premium content stamped with the approval of old media institutions; its Transparent series won the Best TV Show at the Golden Globes.

See L2’s report on 140 media properties to see which ones fall in the One Percent, Luxury, Middle Class or Mass Market.


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