Video producers could be making more money soon. Word just out is that Facebook is preparing to give creators of videos a slice of the revenue generated by ads that run before or during videos.
“This move represents a new departure for the world’s largest social media platform, given that Facebook has never shared the revenue it generates from video before,” notes PureContent. “It may also represent a challenge to YouTube in the drive to attract video creators to use particular platforms.”
What does Facebook want to do? Surely, not pay out any more than it has to … but the social media site is making a big, big play for more video these days.
“Dan Rose, vice president of partnerships at Facebook, told tech news website Re/code that many of the 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,” reports PureContent.
Reportedly, revenue sharing will be limited to a newly introduced feature on Facebook known as Suggested Videos. The new feature is a sub-section of the news feed.
“If a user clicks a highlight in a particular category under News Feed – sports, for example – that video might open in Suggested Videos, which, in turn, would display other highlight videos in the sports category.”
How much money? The Facebook revenue split is said to be the same as that employed by Google-owned YouTube. That would mean a creator of a video gets a 55 per cent share of the revenue. The remaining 45 per cent goes to the host platform. Of course, ads will not play on Facebook in the same way that they do on YouTube.
Facebook is currently testing Suggested Videos in a test phase expected to last several months. No word yet on exactly how the feature will work or how it intends to charge advertisers.