Facebook to pay video clip creators
“Facebook is aggressively moving into the video space,” said Eleni Marouli, advertising analyst at IHS consultancy.
“In December 2014, Facebook surpassed YouTube in views for the first time, and we predict YouTube will lose share from next year onwards.”
In June, US broadcaster HBO announced it would stream some of its programmes on Facebook.
Offering a cash incentive could encourage more publishers to upload on the platform.
While YouTube gives content creators 55 per cent of the revenue from ads displayed before their videos, Facebook will split the 55 per cent per cent it is offering between several creators.
“It’s not an unusual, or generous model,” said Ms Marouli. “But we could see a monetisation battle between Facebook and YouTube, to entice creators onto the platform.”
Facebook made $3.3bn (£2.1bn) in ad revenue in the first quarter of 2015, 73 per cent of it from mobile ads.
“Facebook is very adaptable,” said Ms Marouli. “In 2012, they had zero mobile-ad revenue. In two years, they’ve raised that to over 60 per cent of their ad income.
“Based on our forecasts, by 2018 Facebook will have 25 per cent of online video ad revenue in Europe, and more in the US,” said Ms Marouli.
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