Although speaking before Facebook’s announcement last week that it will share ad revenue with video creators who use its site, Kyncl’s confidence stemmed from a belief that content creators will always want to gain maximum exposure.
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Facebook announced a suggested videos feed on Wednesday after launching a recommended videos feature last month. While YouTube allows nearly any user to monetise their content, Facebook says it is working with a group of media companies and chosen individuals for the time being.
According to Wall Street Journal, Facebook has come across a startling fact as per which, its users are watching close to four million videos per day on the network itself.
Dan Rose, vice president of partnerships at Facebook, told tech news website Re/code that numerous company’s partners have told Facebook that a revenue sharing arrangement “will be a big motivation to start publishing a lot more video content to Facebook”. Users with this feature will be prompted to see videos of their choice from all over the globe. “Scrolling through your news feed is not the most efficient way of doing that”.
“We’re running a new suggested videos test, which helps people discover more videos similar to the ones they enjoy”, a Facebook spokesperson said in an email reply to an AFP inquiry.
Experts say the new feed poses a threat to video giant YouTube. Google does not state YouTube’s contribution of its $60 billion total ad revenue, but analysts expect gross revenues to be nearly $4 billion past year. But it is not clear yet whether that means users will have to watch the full ad, a creator’s full video, or both, for a creator to make the maximum money. This payment will be a partial part of the revenue generated through the video. In an interview with the Financial Times, he said the online video market was growing so fast that “it will be a decade before we bump into each other”.
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Facebook’s plan to boost its video content doesn’t come as a surprise. The startup designs technology that can process and transcode video efficiently to develop video frameworks that can quickly load high quality media.
