Despite undoubtedly being the most popular social network in the digital media market, YouTube appears to have some serious competition.

Facebook is following in YouTube’s footsteps by offering video creators, such as Fox Sports and Funny or Die, a revenue split from the ads featured alongside their videos. The change is occurring later this year and is certain to pull some of YouTube’s audience onto the already popular networking site. It could be seen as an attack on YouTube; as it also offers the same revenue split as Facebook, with 55 percent going to the content creator, and the rest being paid to the social platform.

Although it appears that this is being done to boost video content being posted, thus stealing YouTube’s thunder, the revenue share won’t be working quite the same. One of the main differences is that Facebook’s plans won’t apply to all of the videos in the News Feed. Instead, the platform will be producing a new feature called Suggested Videos, which is a similar feature that has been created exclusively for video content. If a user clicks on a video posted in their News Feed, they will be brought to the Suggested Videos feature where you will not only watch the chosen video but also see others that are similar.

This stream will feature advertisements, which is where the revenue share begins. However, because this new feature is similar to a video version of the News Feed, a user may only see one advertisement amongst multiple videos. If this were to occur, Facebook would divide the 55 percent revenue amongst those video creators based on how much time was spent watching the video. Regardless of this, Facebook would still get 45 percent.

This move is a positive step for Facebook’s push of video content, as well as enticing well-known content creators to share more of their work on Facebook, giving the social platform a new ad stream as well as bringing in more revenue. This major step comes after a few minor, yet noticeable, tweets that have occurred over the last year.

The most noteworthy of such is that videos in the News Feed begin auto-playing without audio to grab attention. As a result of this, daily video views have gone from one billion to four billion in under a year.

Although Facebook still has a few issues to resolve, such as how they will charge advertisers, they are well on their way to becoming highly known for being a multimedia platform.


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