Facebook's Next Move May Worry YouTube

Facebook Plans on Sharing Ad Revenue with Video Creators

If everything goes according to the plan, then Facebook will keep 45% of total revenues generated through video ads while sharing the rest with video creators.

Roughly four billion videos are watched on Facebook every day. The company, for the first time, has decided to earn some money out of it. The good thing, not for YouTube though, is that it will also share the revenues generated through these videos with video publishers.

This revenue sharing offer is available for only limited number of video publishers, including the NBA, Fox Sports and Funny or Die.

If this feature becomes successful, then it is a real threat for Google’s YouTube as it had been an undisputed king of digital video world for almost a decade now. This move from Facebook clearly indicates that it wants to excel in video ad generation business and a hefty share of the revenue to the video creators would make the platform far more appealing for them than the popular video sharing website.

What makes Facebook offering more attractive compared to YouTube for users is that they do not have to search for the relevant video. Instead, the company will find it for them. There will be a button added under the name “suggested videos” which will act as a News Feed of videos only. Thanks to algorithms, this News Feed with find relevant content for each user based on the videos user watch.

This feature will be available for iOS version of Facebook app over the coming weeks, but it may still be a few months to arrive on Android and the web.

 

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