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Facebook to Share Ad Revenue From New Video Service



Facebook wants to give YouTube a run for its money. The company will share the ad revenue that it raises from videos which its users post.

You know all those silly videos on YouTube that go viral like the ones where someone’s cat does something silly? Or how about the ones where someone does something really dumb like in the “Jackass” movies?

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You might have thought that people do this just because everyone wants to be famous and get to be on TV. But you can actually make a lot of money from them. YouTube pays the people who upload popular videos a fee based on the number of hits that they get.

Now Facebook is trying to take on YouTube by offering its users a platform on which to also upload such videos. In order to compete, the company will also pay people a share of the ad revenue that it raises from their videos. Facebook will let a user keep 55% of the revenue raised, but with a catch. It will have to be divided with uploaders of other videos near the ad and the amount paid will depend on how long people watch.

“There are use cases when someone wants to go into a video consumption experience, ” Dan Rose, Facebook vice president of partnerships, told the Wall Street Journal. “Scrolling through your news feed is not the most efficient way of doing that.”

“So if they spent one minute on a few NBA videos and two minutes in a couple videos from Funny or Die, we would take that 55% of the revenue we’re sharing, we would give a third of it to the NBA and two-thirds of it to Funny or Die.”



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