The social networking firm Facebook is in plans to provide a share of the advertising revenues that is generates via the posts to the video contributors. This move is aimed to increase the competition with YouTube. This move will further encourage the content producers to partner with the social networking company and come up with engaging and quality rich video contents.
Facebook will share 55 percent of the revenues from the ads in the video feeds among the contributors, depending on the amount of time that is spent with each of the films. The revenue sharing initiative is a part of the new suggested video service of Facebook and it is designed to enhance the amplification in the rapidly growing mobile and video segment.
Whenever users tap on a particular video in their News Feed, they can see film suggestions below the same. Once the users scroll over the videos, they will start playing automatically and it will be related to the one that is already being watched. For instance, the videos on the same topic or similar publishers will be played.
Regarding the same, a spokesperson from Facebook stated that they are running a new suggested videos test that helps people discover more videos that are similar to the videos they enjoy watching. A monetization test is being run within the suggested videos and it will show feed style video ads and share the revenue with a set of media companies and creators.
The suggested video service is trialed by a select group of media partners in the U.S. initially including Fox Sports, Hearst and NBA. If it is successful, the same will arrive in the U.K. The first phase of the test will focus on the refining of the service. Facebook will not generate revenue for the firm or its partners.
Derek Scobie, the head of YouTube propositions for Northern and Central Europe at Google claimed that the competition is welcome as it drives innovation. He stated that the experience on YouTube is solely videos and it will result in dramatic differences in terms of brand impact and engagement.