Facebook is now luring media giants like NBA and Fox Sports, and others, with a revenue split from the total share of the profit that Facebook earns from their videos. Well, this is not out of generosity. Facebook has a viewership of about 4 billion videos daily and it yearns to see more, with an ultimate aim to topple YouTube from the throne.
Facebook has decided to split the revenue 45-55, where the social media giant gets 45% and the rest goes to the video creators. This is the same revenue split as the YouTube, but the company asserts it provides an advantage to the media corporations with its massive reach. Plus, it will display the videos itself without the users having to search for it. Moreover, the algorithm that Facebook has decided to use would be targeting the users as per their interests while showing more videos in the Suggested Videos Feed, much like the News Feed.
Facebook has been offering videos for a long time now, but using the pre-roll ads now would be where it is going to earn a lot more. The social network has had many changes to its business model in the past couple of years to make it a multi-billion dollar company and still rising. The company has been under a lot of criticism lately due to the way it endorses its products and the reach it provides to the small businesses that depend on it.
Facebook does look serious this time with its new venture with the big brands to entice more users to stay on their page. It will take few months till the company’s plan surfaces, whereas it will totally depend on the public to make it a success.
Until then YouTube comfortably stays at the top of the searches when it comes to digital videos.
Source: FSB
No comments:
Post a Comment