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Facebook to share ad revenue with video creators

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If you read our post about Facebook becoming a major YouTube competitor a few months ago, today’s news should surprise you at all.

According to Re/code, some video content providers will start receiving ad revenue share beginning this autumn. It’s the first time Facebook has done any kind of revenue share around video.

So far, Facebook was all about the reach, but if you wanted to monetise your video output, you’d still stick to YouTube. Not any more.

But, as always with Facebook, things are not that simple. There will be a new feature called Suggested Videos, which means that only some of the videos show in user’s News Feed will be monetised.

Then there is the split: Facebook will keen 45%, with the remaining 55% going to the video creators, but as Re/code explains, if a user watches three videos and just one ad (yes, Facebook pre-roll ads, here we come!), the revenue (ie. the 55%) will be split among the three videos, based on how long you watched each.

As this will be a brand new revenue stream for Facebook, expect a lot of tweaks, changes and experiments.

But we’re curious to see how YouTube will respond to the new competitor.